Ultra high net worth (UHNW) clients in the US tend to own multiple houses overseas, with North and South America the most popular locations for their foreign properties, according to a study by AIG Private Client Group.
The study’s findings have helped the company develop a new multinational property coverage that serves US UHNW clients with considerable overseas assets.
The AIG Private Client Group data looked at trends with clients who pay in excess of USD250,000 in annual personal insurance premiums. These clients have particularly complex coverage and service needs to go along with their extensive global and domestic assets.
This population owns nine homes overseas, on average. Mexico, the Bahamas and the Caribbean are three of the top five locations for these properties, accounting for 36 per cent of the overseas home count. Two of the top five locations are in Europe. Overall, more than 50 per cent of the homes owned by this group are in the Americas.
The top countries are: Mexico – 14 per cent; Bahamas – 13 per cent; England – 12 per cent; France – 9 per cent; and The Caribbean – 9 per cent.
The study also found that this segment of UHNW clients also has on average 19 regular-use vehicles; USD1.7 million in jewellery insured; and USD19.6 million of fine art insured.
The new AIG Private Client Group offering is designed to address these findings by combining the policy service systems and global presence of AIG Commercial’s multinational insurance platform with the high-touch customer service and claims expertise of AIG Private Client Group.
“No other insurance provider in the high-net-worth space can provide this level of service in their global coverage,” says Gaurav Garg, president and CEO of Personal Insurance. “With AIG’s vast global footprint and capabilities, we are able to take another step forward in our commitment to being our clients’ most valued insurer. We are able to provide our high net worth customers with the AIG Private Client Group claims and underwriting experience that they are accustomed to, whether their homes are in the US or overseas.”
In most cases, US UHNW clients have had to rely on multiple coverages offered by different insurance providers spread across the globe to insure their overseas property, making it challenging for both clients and their insurance agents to access cohesive protection. With the AIG Private Client Group offering, clients can access coverage through one provider and also benefit from AIG’s risk mitigation and claims expertise.