High-Net-Worth Clients Rethink Insurance: New Strategies Amid Crisis

High-Net-Worth Clients Adjusting Risk Strategies in Challenging Times

In light of evolving market conditions, high-net-worth (HNW) individuals and families are recalibrating their approach to insurance and risk management. Recent findings from the 2026 HUB Private Client Outlook reveal a significant shift in behavior, as affluent households demonstrate reduced risk appetites and increased focus on tailored insurance solutions. This adjustment has been shaped by a tightening market, with soaring costs and limited availability of coverage in certain regions of the U.S.

According to the report, only 25% of HNW respondents are willing to take on additional risk for lower premiums, a decrease from 39% last year. This pivot marks a cultural shift as families move away from relying solely on broad, standard policies. Instead, they are now looking for specific coverage that addresses their unique needs and vulnerabilities, especially in high-risk areas.

The Rise of Targeted Coverage and Risk Mitigation

To better protect their assets, many wealthy families are opting for higher deductibles and coverage carve-outs, while actively investing in mitigation strategies that enhance resilience. These proactive measures include utilizing wildfire-resistant building materials, implementing water-detection systems, and enhancing cybersecurity protocols. As Katherine Frattarola, Executive Vice President at HUB, notes, "Families are becoming more engaged in assessing their risk and utilizing brokers to anticipate future threats, no matter if they are tied to their properties or digital assets." This shift towards targeted insurance solutions is essential, particularly as nearly three in four clients report instances of data loss or cyber intrusions.

Financial Pressures and Insurance Accessibility

The landscape of insurance is becoming increasingly challenging for HNW clients. The HUB survey indicates that about 77% of respondents are struggling to secure adequate property insurance, with markets such as California and Texas facing severe limitations due to natural disaster risks. While risks multiply, particularly with climate change exacerbating weather extremes, the capacity of insurance providers to cover high-value assets continues to shrink. As Charley Todd, founder of Charley Insurance, states, “Disasters are outpacing catastrophe risk models,” raising serious concerns regarding the long-term availability of insurance coverage for vulnerable property.

New Age Risks: Cyber Threats and Social Liabilities

Digital risks are becoming an unavoidable part of the risk profile for affluent families. The HUB report highlights that cybercrime losses targeting high-net-worth households now exceed $12 billion annually. This rise in digital threats is prompting families to invest not only in standard cyber insurance policies but also in continuous monitoring services and reputation management coverage. As HNW clients are increasingly targeted by hackers, awareness and preparedness around these issues are vital to safeguarding their assets and personal information.

Tools and Resources for Navigating Insurance Changes

For caregivers and families in Muskegon, Michigan, this evolving insurance landscape necessitates staying informed about different coverage options that can support long-term health and well-being services. Key concepts to understand include:

• Insurance Options for Senior Care: Educating yourself on various insurance options can alleviate concerns related to elder care expenses.
• Cognitive Care Facilities: Exploring facilities that cater to cognitive impairments like dementia can help caregivers find appropriate support for their loved ones.
• Community Resources: Engaging with local care organizations and support communities can provide invaluable assistance to elder care providers and families alike.

Final Thoughts: Preparing for Future Challenges

The current insurance market for high-net-worth individuals requires a multifaceted approach that balances proactive risk management with careful planning. With the issues of availability, rising costs, and emerging threats at the forefront, educated decisions can pave the way for peace of mind and security in the increasingly complex insurance landscape. For stakeholders in Muskegon and communities alike, understanding these shifts is crucial in ensuring comprehensive coverage that aligns with families' values and long-term objectives.

If you are looking to navigate the changing tides of insurance, it’s essential to consult with a knowledgeable broker who can tailor solutions four your unique needs. Empower yourself with comprehensive elder care insurance options while ensuring your loved ones receive the support they need throughout these uncertain times.