Overview
Insurance once felt simple for affluent families. Now it’s a maze of digital, climate and legal threats that outpace the insurance coverage many believe they already bought.
New PRMA research shows a widening disconnect between what high net worth households fear and what their insurance policies actually protect, and the tension is getting louder across the market.
The 2025 Private Client Insurance Insights Survey pulled responses from 250 affluent homeowners. Beinsure analyzed the report and highlighted key trends.
According to PRMA, the modern risk map sprawls far beyond property. Wealthy clients think about market swings, global instability, cyber intrusions, extreme weather, and the financial fallout of lawsuits, often all at once.
Generational insurance gaps carve the data into sharper layers
Millennial HNW clients show significantly more anxiety about lawsuit exposure, with 83% calling it a serious risk compared with 32% of Baby Boomers.
9 in 10 respondents flagged market volatility and political shifts as major risks. The same number pointed to cyber threats. 60% worry about severe weather. More than 50% fear litigation costs. It’s a crowded landscape, and people know it.
Younger households also adopt cyber insurance at noticeably higher rates – 54% versus fifteen% for Boomers.
According to our analysts, that split says less about age and more about how comfort with digital life shapes risk awareness.
But then comes the major contradiction baked into the survey: 95% of HNW clients express confidence in their insurance, while 65% simultaneously worry about exclusions.
Unmatched Concerns vs. Actual Coverage Confidence
| Metric | % of HNW Clients |
|---|---|
| Confident in their overall insurance | 95% |
| Worried about policy exclusions | 65% |
| Have taken steps to improve cybersecurity | 58% |
| Want to do more on cybersecurity | 58% |
That tension reveals a deeper issue in how advisors explain coverage, limits, and the grey areas in between. In a tight market, doubt spreads fast.
One in five affluent homeowners struggled to secure property cover in recent years. In high risk states like California, Florida, Texas, and Louisiana, it jumps to one in three.
A quarter of respondents faced weather damage in the past five years, and eighty in a hundred of those losses were moderate or severe.
Many still aren’t sure whether their policies handle the specifics – flooding, quakes, or region specific perils.
Hard Market Impact on HNW Households
| Hard Market Pressure | Data |
|---|---|
| Struggled to get homeowners insurance | 20% (1 in 5) |
| Struggled in high-risk states (CA, FL, TX, LA) | 30% |
| Paid higher premiums | 63% |
| Accepted reduced limits or new exclusions | 50%+ |
Insurance claims experiences add more noise
While overall satisfaction sits at 87%, friction spikes among clients juggling multiple carriers. 40% reported frustration with claim speed, and 27% said reimbursement fell short.
Even clients of HNW specialist carriers, who reported 93% overall satisfaction, still complained about slow settlements and payment levels. Confidence on paper doesn’t match confidence in practice.
Location shapes attitudes too. In high risk states, 75% worry more intensely about exclusions compared with 60% elsewhere.
Those clients lean into mitigation: 45% installed fire resistant materials, and 48% upgraded roofing for wind resilience.
Insurance Claims Experience Satisfaction
| Claims Metric | Result |
|---|---|
| Overall claims satisfaction | 87% |
| Satisfaction among specialist-insurer clients | 93% |
| “Very satisfied” among specialist-insurer clients | 33% |
| Main pain points | Slow claim speed, low reimbursement |
Litigation anxiety stays steady across the country at roughly 60%, making excess liability conversations relevant everywhere, not just in classically litigious states.
Insurance policy placement alone won’t cut it. HNW clients expect risk partners who coordinate with wealth advisors, CPAs, estate lawyers, and financial planners – a group 63% already consult for insurance decisions.
PRMA says the findings should force a shift in how advisors work.
Cyber risk shows why this expanded role matters
28% of affluent families experienced a cyber event in the past 5 years, usually identity theft or financial fraud.
And while 58% have taken steps to protect themselves, most admit they need broader support. Agents who conduct structured cyber risk reviews and position coverage alongside property and liability solutions can stand out quickly, especially with younger clients.
Cyber and Digital Risk Exposure
| Cyber Risk Metric | % of HNW Clients |
|---|---|
| Experienced a cyber incident in last 5 years | 28% |
| Millennials seeking cyber coverage | 54% |
| Boomers seeking cyber coverage | 27% |
| Most common cyber events | ID theft, fraud, account breach |
Collections create another opening
69% of HNW households own significant collections – art, jewelry, classic cars – and 57% plan to pass these assets to heirs. Yet plenty lack tailored advice.
Advisors who frame these conversations as legacy protection instead of asset value tap into a deeper motivation that generalist brokers tend to miss.
We think the message is pretty blunt. The affluent market isn’t losing trust because of the threats themselves (see about Cyber Security Top Trends & Cyber Attack Threats). It’s losing trust because clients don’t understand how those threats interact with the coverage they have.
Collections, Assets & Legacy Planning
| Legacy Metric | % of HNW Clients |
|---|---|
| Own valuable collections (jewelry, art, cars) | 69% |
| Plan to transfer assets to heirs | 57% |
| Have comprehensive collections insurance | Significantly lower (major gap) |
Advisors who close that gap – with specificity, not sales pitches – will own the next decade of HNW insurance.
FAQ
Because today’s threat landscape isn’t limited to property anymore. HNW families face overlapping digital, climate, financial and legal risks. Even though 95% feel confident in their insurance, 65% worry about exclusions, revealing that many believe they’re protected when they’re actually exposed.
PRMA data shows an unusually wide range of fears:
90% cite market volatility and political shifts
90% cite cyber threats
60% fear extreme weather
50%+ worry about litigation
The modern HNW risk map is far bigger than fire, theft, or wind.
Millennials live highly digital lives, so they see digital and legal threats differently:
83% of Millennials fear litigation vs 32% of Boomers
54% of Millennials want cyber coverage vs 27% of Boomers
Younger clients are more attuned to online vulnerability, privacy exposure, and digital fraud.
The hard market is hitting wealthier households, too:
1 in 5 struggled to place homeowners coverage
30% struggled in high-risk states (CA, FL, TX, LA)
63% paid higher premiums
50%+ accepted lower limits or new exclusions
Insurer capacity, wildfire risk, convective storms, and valuation surges all contribute.
Because most affluent households own valuables, but few insure them correctly:
69% own collections (art, jewelry, cars, watches, wine)
57% plan to transfer these assets to heirs
Yet many lack scheduling, appraisal support, or specialty valuation coverage.
…………………….
Edited by Nataly Kramer – Lead Insurance Editor at Beinsure Media
