Top-of-mind concerns include climate-related property damage,
economic instability and potential for ruinous lawsuits
WHITEHOUSE STATION, N.J., Dec. 19,
2023 /PRNewswire/ -- A new survey from Chubb finds
that more than three-quarters of wealthy Americans and Canadians
believe damage from severe weather stemming from climate change
poses the biggest threat to their home. That's among the key
findings of the inaugural Wealth Report from Chubb, which
gauges perceptions of affluent people about their passions, mindset
about wealth and the risks they face in protecting what matters
most to them.
"The Wealth Report provides an insightful lens into the concerns
and pressures the affluent are facing. It shows a shift in how they
value and invest their wealth, who they seek advice from to protect
it and what keeps them up at night," said Ana Robic, Chubb Division President, North
America Personal Risk Services.
The key findings are based on a survey of 800 high-net-worth
(HNW) individuals in the U.S. and Canada. The survey was conducted by iResearch
Services on behalf of Chubb and has a margin of error of +/-
4%.
Building wealth is more challenging than ever before. Two
out of three (66%) affluent Americans and Canadians say it's more
challenging to build and protect their wealth. Survey respondents
are also working harder to keep it: the vast majority (83%) are
employed, and almost a third of those say they would prefer never
to retire. That's true whether their wealth is inherited, self-made
or a mix of both.
The HNW are aware of the threats to their homes – and some
are taking action to protect them. Over three quarters
(76%) perceive exposure to extreme weather due to climate change as
the top risk to their home, while 63% named weather-related water
damage (e.g. hurricane, flood) as major concerns. The risk of
wildfire was a risk too close for comfort for 31% of
respondents.
Within the home, over half of respondents (54%) indicated burst
pipes and plumbing water leaks is a worrisome top risk. Many are
proactively mitigating the climate and internal home related risks.
For example, almost half (48%) of respondents installed whole-house
generators and smoke and heat detectors, while nearly one quarter
(22%) implemented wildfire mitigation (e.g. defensible space around
the home perimeter.) Nearly half of the respondents (49%) installed
water-leak detection sensors.
"We have experienced the consequences of increasing frequency
and severity of weather-related property damage across the country
with more powerful storms, wildfires, and the unexpected occurrence
of deep freezes in southern states," commented Jennifer Naughton, Executive Vice President and
Risk Consulting Officer for Chubb Personal Risk Services. "While
weather has received substantial attention, damage within the home
from internal sources such as plumbing line failures, leaky
waterlines to an appliance or AC units can be destructive and often
require long and costly repairs for those impacted."
Homeowners have a passion for their collections – and want to
keep them safe from threats. Four out of five respondents are
collectors of fine art, jewelry, cars, fine wines and other
valuables. Most (62%) say they have a passion for what they collect
while 38% see it primarily as an investment. Over- three quarters
of respondents (87%) listed art fraud as the top risk
to their collection, followed by damage during
travel/transportation (86%), natural deterioration (79%) and
theft/loss (78%). Climate and weather also figure into concerns of
respondents regarding their collections, with nearly threequarters
identifying loss/damage from fire (74%), followed by loss/damage
from storms/floods (64%).
"It's important not to lose sight that external climate,
weather-related risks and vulnerabilities specific to particular
items can also impact collections," said Laura Doyle, Senior Vice President, Fine Art,
and Valuable Collections Product Leader at Chubb. "We counsel that
there are steps collectors can follow to help preserve their
collections, including the installation of centrally monitored
alarms, climate control systems and emergency preparedness
planning."
The wealthy are worried about liability risks, including the
potential for a big jury verdict. Nine out of 10 respondents
are concerned about the size of a potential verdict against them if
they were to be a defendant in a liability lawsuit. Despite that
level of concern, just one in three (36%) say they have excess
liability coverage. This could be due to the fact that less than
half (48%) believe they could be an enhanced target of a lawsuit
because of their wealth.
Auto liability risks are also on their minds, with 45%
expressing concerns about accidentally hitting a pedestrian and 40%
were concerned about liability issues should they be involved in
automobile accidents in which they cause bodily harm.
Robic added, "We have observed that many homeowners aren't aware
that liability policies are available that go beyond the basic
coverage offered in a homeowner's policy. This is where an agent or
broker can add value to closing the protection gap by providing
expertise and advice to identify vulnerabilities and recommending
the right coverage to protect assets and, most importantly, prevent
losses from happening in the first place."
The complete 2023 Chubb Wealth Survey report findings can be
found here.
Chubb Wealth Report Survey Methodology
Findings are based on a survey of 800 high net-worth individuals
in the U.S. and Canada. The survey
was conducted by iResearch Services on behalf of Chubb during
September and October of 2023. Respondents had investable assets of
at least $500,000 with the majority
reporting assets of $1.5 million to
$25 million. Ten percent (as of
Oct 11, 2023) had assets over
$50 million. The margin of error is
+/- 4%.
About Chubb
Chubb is the world's largest publicly traded property and
casualty insurance company. With operations in 54 countries and
territories, Chubb provides commercial and personal property and
casualty insurance, personal accident and supplemental health
insurance, reinsurance and life insurance to a diverse group of
clients. As an underwriting company, we assess, assume and manage
risk with insight and discipline. We service and pay our claims
fairly and promptly. The company is also defined by its extensive
product and service offerings, broad distribution capabilities,
exceptional financial strength and local operations globally.
Parent company Chubb Limited is listed on the New York Stock
Exchange (NYSE: CB) and is a component of the S&P 500 index.
Chubb maintains executive offices in Zurich, New
York, London, Paris and other locations, and employs
approximately 40,000 people worldwide. Additional information can
be found at: www.chubb.com.
Chubb Insurance Company of Canada has offices in Toronto, Calgary, Montreal and Vancouver and provides its products and
services through licensed insurance brokers across Canada. For additional information, visit:
chubb.com/ca.
Chubb®, Chubb logo® and Chubb. Insured.SM are
trademarks of Chubb.
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SOURCE Chubb INA Holdings