Relationships Key to Attracting High-Net-Worth Clients, Chubb Research Finds
WARREN, NJ, July 25, 2007– Insurance agents and brokers with strong industry and third-party relationships secure a greater share of today’s high-net-worth
market, according to a new Chubb Independent Agency Survey.
“The high-net-worth marketplace increasingly values agencies that understand the importance of these relationships,” said
James Fiske, vice president of Chubb & Son and marketing manager for Chubb Personal Insurance. “This is a key realization
for agents looking to expand their affluent clientele.”
The Chubb Group of Insurance Companies surveyed more than 600 of its independent agencies on a variety of tactics to determine
which work best in acquiring high-net-worth clients. Respondents included top-performing “Cornerstone” agencies and “Non-Cornerstone”
agencies that also do business with Chubb. The results show that agents who perform more like specialized consultants than
insurance salespeople have the most to offer.
When working with high-net-worth clients, successful agents:
- Know their consultant. The largest discrepancy was found among agencies that actively pursue third-party referral sources – a tactic practiced by
78% of Cornerstone agencies, compared to only 46% of Non-Cornerstone agencies. When asked for the most valuable sources of
these leads, 42% of Cornerstone agencies indicated that they work with other high-net-worth advisers, including financial
planners and attorneys, to find prospective clients. As personal risk management becomes an increasingly important part of
wealth management, affluent individuals will find growing value in these relationships.
- Know their market. While claims service and financial stability remain important considerations for clients when selecting an insurance company,
the findings indicate that affluent market knowledge sets Cornerstone agencies apart. Thirty-six percent of Cornerstone agencies
believe this niche expertise results in realized sales leads, as opposed to 18% of Non-Cornerstone agencies.
- Know what they need. It is clear that the affluent are increasingly turning to their insurance agent as a trusted adviser for identifying risks.
Fifty-nine percent of Cornerstone agencies attribute new high-net-worth business to gaps identified, higher limits sold and
more coverage offered. Non-Cornerstone agencies, however, use price as the primary tactic for attracting high-net-worth clients.
- Know them. Special services catered toward high-net-worth clientele communicate a commitment to that segment. Sixty-six percent of Cornerstone
agencies have a personal insurance VIP unit, while only 46% of Non-Cornerstone agencies offer the same service.
“For agents and brokers, this calls for a review of agency procedures and relationships,” said Fiske. “Agencies that aren’t
writing as much high-net-worth business as they would like may not be focusing their attention in the right places. Understanding
how and where to build relationships can help maximize exposure to this market.”
The online survey was conducted in February. For further information on the study, contact Mark Schussel at (908) 903-2107
or David Gautschy at (212) 584-5478.
The member insurers of the Chubb Group of Insurance Companies form a multi-billion dollar organization providing property
and casualty insurance for personal and commercial customers worldwide through 8,500 independent agents and brokers. Chubb’s
global network includes branches and affiliates in North America, Europe, Latin America, Asia and Australia. Chubb is a worldwide
leader in insuring fine homes, automobiles, yachts, antiques and other collectibles, and personal liability. Additional information
on Chubb can be found at www.chubb.com/personal.
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