There is huge potential in the High Net Worth (HNW) home insurance market as earnings from this type of customer can be substantial.
However, while this market has traditionally been dominated by brokers, a clear challenge has emerged from banks and direct providers who are able to capitalise on their brand recognition and customer knowledge to target HNW individuals. Intermediaries are going to have to meet this challenge head on if they are to continue to hold the lead in this market.
While increased competition in any sector will invariably benefit consumers, the entrance of banks and direct providers into the HNW home insurance market can also be seen as good news for intermediaries themselves. More competition will present intermediaries with an opportunity to promote their unique selling points and highlight differentiation.
Meeting the challenge
Intermediaries must use all the tools at their disposal – particularly those that set them apart from banks and direct providers – to maintain an advantage. HNW home insurance is a bespoke product area and this is key to intermediaries’ dominance of this market place. As a bespoke product, it demands professional and personal advice. This is where intermediaries, who are able to meet with clients face-to-face, still have a significant advantage over banks and direct providers.
Brokers also need to become more aware of their competitors’ offerings and focus on the bespoke needs of HNW individuals to appropriately position features and benefits that meet client requirements. Intermediaries who have a strong understanding of emerging product trends and availability of features will be well placed to make appropriate product recommendations to clients and meet the bespoke needs of HNW individuals by concentrating on key features and benefits.
Our guide to High Net Worth home insurance analyses market data from the last five years to paint a comprehensive picture of product trends and feature availability within this time period. It also discusses the challenge of the banks and direct providers to the dominance of the intermediary sector and highlights some of the unique selling points brokers can use to mitigate this challenge.Download