Navigating the complex world of premium insurance

Premium insurance is a completely different field – designed to meet the unique needs of people with large assets. These policies offer direct protection for high-value homes, luxury cars, yachts, and personal collections, emphasizing customized policies, higher coverage limits, global protection, and professional risk management services.

Lorrie Baldevia (pictured), platform president at AssuredPartners, leads the firm's premium insurance practice. This specialized group addresses the unique needs of wealthy individuals, families and business owners, covering everything from future tax credits, medical benefits, to private art collections.

“When you work with high-net-worth clients, especially in high-end areas, you are part of the advisory team as an insurance specialist.” told IB. “It's a team effort, and our company ensures that all risks related to the family and their advisors are managed.”

'Many say they are in a high value area but they are still at market buying levels'

Baldevia noted that there are opportunities for growth within this space, comparing it to other market segments.

“Many say they are in a high-priced area, but they are still at the market's buying levels,” he said. “In this space, it's about understanding the type of coverage, not just the rates. It's a tough market right now, with problems like companies leaving locations and market disruptions. It's a great opportunity to educate clients so they understand coverage and aren't surprised at renewal time. If they are, you haven't done your job.”

Baldevia describes the premium insurance market as one of consulting, where advisors must educate clients on the complexities and nuances of their coverage. “It's about having a consultative conversation,” he told IB. “If clients are surprised by the price increase, then you have not prepared them well.”

The role of an insurance advisor in this space goes beyond the traditional boundaries, involving close collaboration with other professionals in the client's life.

“You don't just work with family; you work with their entire team—accountants, CFOs, and other advisors,” she said. “This integrated approach ensures that all aspects of their wealth and risk are properly managed. We have many high net worth clients with high value assets including art collections and classic cars. It has become common for these customers to hire their insurance advisor to manage all their family's assets because they know all the details.”

This alone highlights the flexibility of the high value sector, driven by changing customer needs and circumstances.

“Customers are always acquiring new assets, selling businesses, or transferring wealth,” he said. “This ongoing change requires us to be quick and responsive. We bring together teams that manage financial services and personal assets to provide comprehensive advice. This ensures that all aspects of the client's wealth, from taxes to personal assets, are covered.

'There is a growing middle market of high earners'

Speaking about the emergence of high value markets, Baldevia noted the growth of this segment. “We have always had a tendency to make high profits, but now there is a growing market for people with high incomes,” he said. “Housing costs and economic growth increased wealth, opening up new opportunities.”

Also, regarding the regulatory and economic challenges affecting the insurance industry, Baldevia is optimistic. “The limited capacity to write policies, especially in high-risk areas such as coastal or fire areas, is a significant problem,” he said. “Dealers with access to large markets, such as AssuredPartners, have an advantage in navigating these challenges.”

Looking ahead, Baldevia sees technology playing a key role in the future of this industry – as it will in almost every industry in one way or another.

“AI and data integration will help us understand customers better and advise on risks more effectively,” he said. “Once we get to know our customers and understand what they have, we can provide more education – which I think is a trend for innovation. [It’s about] we really invest in that to understand if a carrier has poor performance ratings… the importance of understanding their claims and loss ratings.

“I think of those [trends] around technology [will] help us find out [more precise] information so we can better serve our clients – that's something we really emphasize at AssuredPartners.”