High Net Worth P&C Niche

[Bob Klee]

Personally, I would say if you have a home > $1m Cov A you should only write it with a "HNW" carrier. The standard market home/excess/auto has much, much less coverage than a Chubb/PURE/AIG PC/NWPC/CinFin/Berkley One/Vault policy. Standard market: Erie, Travelers, Safeco, whatever, don't even come close in coverage protection/limits/service.

+++ if you want to know why I can say that...read on +++

If you really want to write business in the "HNW" space then first you need to know the product and needs of this niche. I would suggest investing in either of the 2 designations in this niche [I have both but it is a time/money investment].

This way you don't have to spend years in the trenches learning by trial & error. The CPRM = Certified Personal Risk Manager, designation is by the National Alliance, the same folks that do the CIC designation. Good material but if you don't like investing $500+ bucks every 2 years in CE for the right to continue to use the designation then don't go this route.

The other Designation is sponsored by the non-profit: PRMA - Private Risk Management Association in conjunction with St. John's University [NY]. It is called the CPRIA = Chartered Private Risk and Insurance Advisor. No continuing ed required to use the designation. Both have all their classes online and have very good content/teachers.
I like both for different reasons but if I had to choose just one I think I'd lean towards the CPRIA.

HNW is a niche and just like commercial niches, "niches are riches." The consumer has no recognition of either designation but it does carry some weight when trying to get in the door with Family Offices, Wealth Managers, etc., especially if you are young without 20-30+ years of experience. You can complete either designation in <= 2 years if you stay with it.

 

[Josh]

So let's say you were talking to a HNW individual, why would they want to do business with you instead of someone that's been in the business for a longer period of time?

Do you understand how to insure exotic cars and expensive toys? HNW individuals do have different needs, if you want them to be your clients, look at the problems they have in their life, and make it easy to do business with you. A guy dropping $500k on an exotic car doesn't really give a shit about the insurance being the best rate, they just want to make sure they really are getting the right coverage. Heck, if you really get into the toy market, expensive toys, and can really find some advantages, that would make you invaluable. People with a HNW generally value time more than cash. If you can be very easy to work with, it's much easier to refer someone that offers unique value, i.e. "I use Broker12345 because I needed (fill in the blank) coverage, GEICO doesn't know shit about that when I call up, but I didn't have to deal with hassle, just got the insurance for my (whatever toy), and boom, I was done." If you can make the transaction easy, that is very referable.

 

[gambrinus]

I dealt with HNW and the "almost" HNW crowd for a bit. Very much NOT worth the headaches. The misconception is that the guy with the $10m house is paying 10x the premium as the guy with the $1m house and thus you, Mr Agent will be making 10x the $$$. Nope... Bob Klee hit it right on the head...