According to a recent report, financial advisers and wealthy investors have a difference of opinion when it comes to tangible assets such as property, art collections and other valuables.
While many wealth managers focus on investments, such as stocks, bonds and private equity, wealthy investors would prefer their wealth managers to take more account of their holdings, the insurance giant Chubb and Wharton School from University of Pennsylvania found in a survey of 100 high net worth investors, family office members and “key financial decision makers”.
For example, while only 53% of advisers view tangible assets as part of the wealth of their high net worth clients, 87% of clients do, according to the report.
Chubb and Wharton also found a “37% gap” between wealth advisers who work with insurance agents or brokers to protect their clients’ tangible assets and high net worth clients who think tangible assets should do. part of their balance sheet.
“In our sample, most UHNW respondents view their wealth holistically, which means they think about multiple factors, such as tangible non-financial assets, operating company assets, human capital, and assets. liquid financials, as representing a more complete picture of their family’s total wealth, ” Chris Geczy, the Wharton finance faculty member overseeing the research, said in the report.
Fran o’brien, president of Chubb North America Personal Risk Services, said in a statement that wealth managers should leverage their network of professionals, including insurance brokers and agents, to ensure their high net worth clients “are covered more comprehensively “.
Advisors should also be aware that high net worth investors are much more interested in what they get for their insurance than what they pay for it: 80% of clients with wealth of $ 30 million or more say that they would prioritize coverage and service over price – and that rises to 95% of respondents with $ 50 million or more in wealth, according to the report.
Wealthy people also prioritize financial stability and an insurer’s balance sheet, followed by their ability to handle complex situations, according to the survey.
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