Going Direct vs a Broker: High Net Worth Cover

High Net Worth (HNW) brokers and direct insurers in the UK serve different purposes in the insurance landscape, particularly for affluent individuals with complex needs. We’ve drawn up a comparison of the two:  

1. Customisation of Cover

HNW Brokers: Brokers specialising in HNW individuals offer tailored cover designed around the unique needs of affluent clients. They can help arrange policies covering rare assets like art collections, yachts, multiple properties, and luxury vehicles. 

Direct Insurers: Direct insurers often have more standardised policies. While some may offer HNW options, they typically lack the same level of personalisation. Their policies may not cover specific, high-value items or offer as extensive limits as a specialist broker/insurer could.

2. Expert Guidance and Advice

HNW Brokers: Brokers bring in-depth expertise, providing personalised advice on subjects such as valuations and risk assessment to ensure correct protection. They often have access to niche markets and specialist underwriters and can advocate on behalf of the client. 

Direct Insurers: While direct insurers may provide basic customer support, they typically don’t offer the same specialised knowledge or advocacy. Clients may not receive advice tailored to their unique risk profile and lifestyle. 

3. Claims Management and Support

HNW Brokers: One of the most valued services of an HNW broker is assistance during claims. They work closely with clients, helping them navigate complex or high-value claims efficiently and advocating for a smooth, fair, and swift outcome. 

Direct Insurers: Direct insurers may offer efficient claims handling, but high-value or unusual claims can be more challenging, as these insurers often lack detailed knowledge of specialised assets. Claims may be processed without personalised support or expertise. 

4. Access to Exclusive Products and Insurers

HNW Brokers: Brokers often have established relationships with top-tier insurers, including private clients and HNW-focused policies. They can connect clients with insurers offering exclusive policies that aren’t available directly to the public. 

Direct Insurers: Direct insurers may offer products directly to HNW clients but generally lack the depth of cover available through brokers. They might not have access to some of the most elite insurance products in the market. 

5. Risk Management and Services

HNW Brokers: Many brokers offer additional risk management services, such as advice on physical security, asset preservation, and risk mitigation strategies. This proactive approach helps clients reduce risks and secure their assets. 

Direct Insurers: While some direct insurers offer basic risk management tools, they typically lack the specialised services that address the unique risk profiles of HNW individuals. 

6. Flexibility and Convenience

HNW Brokers: A broker often acts as a one-stop service, providing clients access to multiple policies across various insurance types, all managed under one roof. This can be highly convenient for clients who don’t want to deal with various insurers. 

Direct Insurers: Direct insurers can be convenient for straightforward, lower-value policies but may not provide the same convenience or flexibility in policy bundling and management for HNW clients. 

To summarise, HNW clients in the UK, using a specialist broker provides more personalised service, expert advice, access to bespoke products, and advocacy in claims—all tailored to their unique needs. Direct insurers can be a cost-effective and simpler option, but for clients with complex, high-value assets, a broker often provides unmatched service and coverage customisation.