Within the UK household insurance market there is a segment dedicated to providing specialist policies for individuals whose above-average wealth would result in them being underinsured should they hold a standard, mass market policy. In response, providers have developed policies for both mid net worth (MNW) and high net worth (HNW) individuals that typically have wider coverage and higher limits than standard policies.

The number of HNW and MNW households in the UK is forecast to continue rising over the next five years. This, combined with average premiums which it is believed will hold constant or rise slightly, will allow the market GWP to continue its year-on-year growth. In order for providers to capitalize on this potential growth they must begin to adopt online platforms which can be utilized for the purchasing journey and claims process, as customer preferences have slowly started to change towards those found within the mass market. 

Critical success factors -

Increase product take-up in the MNW segment – The MNW market has been identified as fundamental to the future growth of both the MNW and HNW markets. Providers that successfully manage to capture the MNW market will be best placed for future growth.

Embrace online channels – Consumer preferences are changing and digital and online platforms will prove to be essential for providers seeking to grow their existing customer base. 

Set the benchmark for high-quality service – In order to remain competitive against enhanced standard products, specialist policies need to highlight the superiority and value for money of their client services. This includes remaining ahead, or at the tip of, the curve in a market that’s rapidly improving its customer-centric approaches.