New research commissioned by specialist insurer Ecclesiastical has revealed one in two high net worth clients (51%) believe they would benefit from more crime and security risk guidance from their insurer or insurance broker, presenting an opportunity for brokers. With rising inflation and the cost of living crisis, wealthy individuals are a prime target for criminals. More than half (52%) were victims of crime in the last 12 months and three in five (60%) are now more concerned about crime since the cost of living crisis.
The survey of high net worth individuals in the UK discovered those with higher incomes, aged 35-54, and residents of London are more likely to have experienced a crime.
Of those who have experienced a crime in the past 12 months, almost half suffered a theft (49%). One in five high net worth individuals reported experiencing trespassing (23%), home intrusions (20%), and criminal damage (20%). On average, crime over the past 12 months has cost wealthy individuals more than £72,000. In December, England footballer Raheem Sterling’s home in Surrey was burgled while he was away at the World Cup in Qatar. Thieves stole a number of valuable items including jewellery and watches.
Wealthy individuals are being proactive about crime prevention, seven in 10 (71%) have introduced new measures to protect their homes and deter criminals during the past 12 months. The top investments are CCTV (37%), security lighting (33%), and upgraded locks for doors and windows (30%). Almost one in five (18%) installed safe rooms / panic rooms during the past year.
Of those who experienced a crime, high net worth clients invested in adding security (45%), hiring a security expert to do a security review of the property and grounds (35%), and hiring a residential security team to be at the property (35%). A number of celebrities have guard dogs to protect their homes, including rapper Stormzy and footballers Jack Grealish and Jesse Lingard. Despite many investing in security improvements, more than half (53%) believe they need to do more to improve the security of their home. A third (33%) believe their home is an easy target for criminals and more than half (53%) are expecting an increase in crime over the next year.
Ecclesiastical recently published a new guide which provides scenarios and risk guidance to help high net worth clients minimise the risk of being targeted by criminals.
Ecclesiastical is encouraging brokers to refer to the new guidance at http://www.ecclesiastical.com/target and speak to their high net worth clients about how best to protect themselves and their households.
Sarah Willoughby, Art & Private Client Business Director at Ecclesiastical, said: “Amidst the cost of living crisis, those who have more to lose are becoming a greater target for criminals. Our latest research shows more than half of high net worth individuals were victims of a crime in the past year and three in five are more concerned about crime since the cost of living crisis. Brokers play an important role in helping high net worth clients understand the risks they are facing and in ensuring they have the right cover in place. We hope our new guidance will help brokers speak to their clients about how they can best protect themselves.”
Last year, Ecclesiastical launched an enhanced high net worth home insurance product which includes cyber damage, cyber-crime and online liability cover as standard, and optional additional covers including business cover and travel insurance. For more information visit http://www.ecclesiastical.com/artandprivateclient
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