Click headers for detailed case studies:
High Fire Risk
Most insurance agencies historically were unwilling to underwrite fire coverages for homes located in high brush propensity areas. Therefore, our client's fire coverage was under a non-standard home policy through Lloyds of London, while their supporting auto, scheduled property and umbrella policies were scattered among various insurance carriers. The lack of alternatives for fire coverage limited our ability to optimize pricing of premiums and mitigate risk for our client.
Client Description: Our long term, high net worth clients' primary home was located in an area considered to be high brush propensity.
SCM's Solutions: When AIG Private Client Group began a program to insure high net worth individuals in full, taking on hard to place risks and providing all supporting policies, we centralized our client's coverages with them.
AIG's solution enabled us to broaden our client's insurance limits under a claims philosophy tailored for high net worth individuals. In addition, AIG's "Wildfire Protection" unit provides additional response units for homes under threat of damage, with the goal of preventing loss. This service also provides annual property reviews of homes in high risk areas, including spraying surrounding vegetation with an environmentally friendly fire retardant.
Client Benefits: In addition to simplifying their insurance carriers to a single source, our client also benefitted from premium savings from multi policy credits. They used these credits to increase their umbrella limit to $25,000,000 and now expand their valuable articles policy to cover jewelry.
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Unmitigated Exposure
The financial adviser to a high net worth couple referred his clients to us for a complete, complimentary review of their personal insurance coverages. At the time, the couple's insurance was from the standard market, which does not provide the unique coverages typically needed by high net worth individuals.
Client Challenges: Our review disclosed a number of concerns. First, the couple was purchasing insurance from a company whose protections and claims philosophy do not address the unique needs of high net worth clients, as evidenced by the fact that the client did not have a Personal Umbrella policy in force.
Personal Umbrella policies perhaps are the most crucial coverage for clients with substantial assets as their financial standing exposes them to claims, incremental to liability losses, that can reach into the millions of dollars.
SCM's Solutions: We structured a new home insurance policy for the couple, increasing their deductible by an amount sufficient to provide a credit to cover a new $10,000,000 Personal Umbrella policy.
Client Benefits: The couple increased their out-of-pocket expenses by $10,000 for property damage losses, but increased their protection by $10,000,000. As an additional benefit, their new carrier, Fireman's Fund, waives property deductibles for losses over $50,000.
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