20 Skyline | Edition 7 | Winter 2024

Expanding a business into new markets and services is a key strategy for growth. For principals and business leaders looking to increase their business portfolio this benefit is not only for the direct and renewable income from the General Insurance( GI) but also for High Net Worth( HNW) customers. They are often professionals, business owners or decision making senior employees, directors of firms.

By catering to HNW customers there are additional opportunities not just for their commercial GI but also a potential likelihood to explore varied protection needs, ranging from keyman type covers right through to the whole range of employee benefit schemes.

These customers frequently work, socialise and are well connected with others in their demographic. They will create a referral network that can prove invaluable to the core products and services offered by the practice.

Their financial needs often extend beyond the standard, and their protection requirements are more comprehensive and complex than the average customer. Therefore, having their insurance needs properly looked after may result in recommendations not only for GI, but by extension, also for the core products and services offered by the practice.

The renewable nature of this GI sector should not be underestimated – by offering a bespoke level of service and building relationships to cater for, sometimes very complex risks, the retention rate in this

Julian Hilton

Sales & Markets Director Higos Insurance Services

sector tends to be amongst the highest in the GI sphere.

These customers are unlikely to be swayed by gimmicks, preferring instead to trusted professional advice giving them the security to know that they are properly covered. This makes them more likely to remain loyal to a provider that understands their needs and can provide reliable, ongoing service.

One of the greatest advantages of diversifying into HNW GI is the renewable nature of the income it provides. Insurance policies are typically renewed on an annual basis, and the bespoke service required by HNW clients means that these relationships are long-term and sustainable.

How offering HNW GI could lead to HNW mortgages in the future

This customer base seldom only owns one property and so there are often both GI and lending opportunities to cater for their holiday / second homes. Indeed, in some instances, their entire property portfolios. Higos can cater for portfolios ranging from multiple properties in any of our student towns, right through to very‘ high-end’ investment property in the London market and everything in-between!

Offering both insurance, financial advice and lending services to this market can help a business capture a larger share of the client’ s financial dealings.

Additionally, young professionals with rapidly growing incomes often face challenges with traditional lending criteria.

These individuals may seek specialist lending options that align with their evolving financial circumstances. Firms that can cater to these needs stand to gain not only from insurance policies but also from the accompanying financial services required by these clients.

Aligning GI and consumer duty

By securing cover for their most valuable customers, practices are doing far more than‘ ticking a compliance box!’ There are also important ethical and regulatory considerations.

In the event of a major loss, having the correct cover in place not only reflects well on the adviser and practice but also allows the client to maintain their lifestyle and importantly any investment or other policy held through your practice. Failing to protect the client’ s most valuable assets leaves a practice vulnerable to‘ losing the lot!’ It’ s important to note that a key part of our proposition is to look after the client right through from quote to claim and this continuity of contact via the HNW team is fundamental to the team’ s success!

Another key reason why any practice would want to offer HNW GI is simply to cement the relationship with their most affluent customers. If you allow someone else to handle their GI this gives a third party the potential opportunity to explore other areas such as mortgages and / or protection