Helena Evans, Managing Director, Criterion Adjusters, takes a look at how to handle HNW claims, where the human touch balanced with tech, can often help to smooth the process.
Fire, flood, or any other form of catastrophic damage to a property is an acutely difficult time for its owner, requiring insurers to act quickly but with care and great tact. Nowhere is this more important than in the case of High Net Worth Individuals (“HNWIs”) for whom, despite the many technological advances, the ‘human touch’ still reigns supreme.
Of course, technology can be helpful. During the COVID-19 lockdowns virtual visits were essential as the only means by which we could meet individuals and take cases forward, and drone footage can also be useful particularly on major losses with limited access to give an early indication of the extent of the damage. But for HNWIs in particular, being there to meet them in person means a great deal. By taking the effort to drive to their home, sit with them and talk through the incident rather than just jumping on a video call, it makes them feel valued and creates a level of trust. This is particularly important, given what it is we need to do.
Initially we need to check everything is correct in accordance with the insurance policy provided and that all information given at inception of the policy is accurate. We do this by asking various questions, some of which have to be handled with particular sensitivity and consideration. But once on site we are not just asking questions, we are observing a number of things all at the same time – the property and damage, the body language of the individual – and we’re taking everything in. We may be asking one question whilst at the same time be looking out for any fraud indicators or any underwriting concerns with the property, and by being there in person it is much easier to assess all these things.
As one of the first people arriving on the scene after an incident that might have evoked major damage, such as a substantial fire, people can understandably feel very emotional and vulnerable. Some may be really confident while others may be anxious or angry with the whole situation they find themselves in, and within those first few seconds of arriving you need to gauge how best to interact with that person to gather the necessary information in the most appropriate way. You sometimes take on a bit of counselling role, gathering the information by having to talk around the subject first, to gain their trust. That’s the key skill in this job – it differs with every single person you meet and presents the real, human face of insurance. It’s also all crucial in providing excellent customer service.
In the insurance market, in general, we are noticing a rise in underinsurance. Within the HNW arena whilst in general the contents of a property are usually correctly insured, as HNWI’s tend to know the value of their jewellery and valuable items, underinsurance in relation to buildings can be more significant. Not only are the rebuilding values of the main house high, but many of these properties have several extensive outbuildings, large driveways, pools, tennis courts and the like, with the cost of reinstating these falling under buildings cover. These can add a significant sum to the total rebuild value of a property.
We have come across several claims where the sum insured was circa £1m and should have been nearer to £2.5m, primarily because the outbuildings had not been taken into account. This is where a good broker can greatly assist an HNWI. Brokers tend to recognise and give this same personal service.
The rising price of building materials has made reinstating HNW properties even more costly, with a proportionately higher cost of the bespoke high-end finishes. Being there in person at the time of a claim can help build up a better picture of the property and individuals that live there, so that we can suggest bespoke, cost-efficient solutions as a result.
The London floods of 2021, for example, saw the flooding of many basements – where kitchens are typically located – rendering properties uninhabitable. Thinking outside the box for Alternative Accommodation solutions can mitigate costs dramatically in this area. There were many scenarios where in properties this size a drawing room or study could be repurposed and used as a temporary kitchen, saving upwards of £15k a month. However, these discussions have to be approached carefully as a positive solution, as HNWIs are used to an exceptionally high calibre of living and would need to be sure this isn’t compromised and can actually provide a more convenient solution than uprooting a whole family. These discussions all require the right approach, which is different with every individual you meet.
Communication, managing expectations and being responsive are all crucial to the handling of clients in this space. Ultimately, they need to believe that you’re doing everything you can to help resolve their situation quickly and to the standard they expect. They need to feel listened to and the longer you spend with them during that first onsite visit, the more you get to know them and they you. All of which, goes a long way in creating the ideal customer journey.
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