HNW INSURANCE MARKET NOTES- APRIL 2024

At BCU Risk Advisors, we’re dedicated to safeguarding the legacies of successful individuals and families. The personal insurance landscape continues to evolve, with rising costs, emerging threats, and shifting market dynamics shaping the way we manage risk. As we look ahead to 2025, our commitment remains the same: to deliver proactive, customized insurance solutions tailored to our clients unique needs. Key Trends in 2025 1. Rising Costs and Market Adaptations Premium Increases: Homeowners (+10-12%), Auto (+8-10%), and Umbrella (+10-15%) premiums continue to rise, driven by inflation, labor costs, and social inflation. Capacity and Creative Solutions: Insurers are reducing coverage in high-risk areas, while non-admitted (E&S) markets are stepping in to offer innovative alternatives. Higher deductibles and self-insurance are also becoming common strategies. 2. Emerging Risks Cyber Threats : With global cybercrime costs projected to reach $10.5 trillion by 2025, affluent families face growing risks, from ransomware to identity theft. Natural Disasters: The increasing frequency and severity of hurricanes, wildfires, and flooding call for enhanced disaster preparedness and specialized coverage. Liability Exposures: Social inflation continues to drive increased payouts for lawsuits, making robust umbrella policies critical. 3. Specialized Coverage Needs High-Value Collectibles: Proper valuation and protection for items like fine art, rare wine collections, and antiques is more important than ever. Travel Risks: International travel brings exposures like theft and medical emergencies, highlighting the need for tailored travel insurance solutions. 4. Generational Wealth and Estate Planning Federal Tax Changes: With estate tax exemptions set to drop in 2026, families must prepare for potential impacts on wealth transfer strategies. Educating Heirs: Younger generations require guidance in risk management to ensure their legacy is preserved. BCU Risk Advisors: Your Trusted Partner in Risk Management Comprehensive Coverage Tailored to You We specialize in creating customized insurance solutions that reflect unique lifestyle, assets, and goals. From safeguarding high-value homes and collectibles to protecting against liability exposures, our strategies are designed to evolve with our client’s needs. Proactive Risk Management By emphasizing prevention, we help our clients avoid claims before they occur. This includes installing water shut-off systems, disaster-resistant landscaping, and utilizing advanced cybersecurity measures. Collaborative Approach We work closely with wealth managers, estate planners, and legal advisors to integrate insurance seamlessly into our clients broader financial strategies, ensuring assets and legacies are fully protected. 2025 Recommendations for Families 1. Annual Policy Reviews: Regularly review your policies to address new exposures, lifestyle changes, and market shifts. 2. Invest in Risk Mitigation: Measures like installing leak detectors and upgrading cybersecurity systems can reduce risk and improve insurability. 3. Enhance Coverage: Robust umbrella policies, flood insurance, and cyber coverage are essential for comprehensive protection. 4. Prepare for Wealth Transfer: Engage experts to navigate tax changes, ensure accurate valuations, and educate heirs on managing inherited assets. Why BCU? Our relentless focus on service, risk mitigation, and relationship building has earned the trust of over 1,500 families across all 50 states. By leveraging our carrier partnerships, we consistently deliver comprehensive coverage at competitive rates. Conclusion As 2025 unfolds, the personal insurance market will continue to challenge and evolve. With BCU Risk Advisors by your side, you and your clients can face these changes with confidence, knowing assets are protected, risks are mitigated, and families are secure. Contact us today to learn how we can support your personal insurance needs and help you navigate the year ahead.

Understanding the Risks of Wood Roofs: What Insurance Carriers Need You to Know

The Power of a Home Inventory Video Imagine this: You’ve spent years building a home filled with cherished possessions, from your grandmother’s antique vase to your latest tech gadget. Suddenly, disaster strikes. A fire, a burglary, or a natural calamity – the result is the same: your precious items are gone. Amid the chaos, the last thing you want to do is try to remember every single item you owned. This is where a home inventory video becomes invaluable. The Emotional Toll of Loss Experiencing a significant loss can be emotionally devastating. It's not just about the monetary value of the items lost but the memories and sentiments attached to them. Recalling every possession under stress is nearly impossible, and the process can be heart-wrenching. By creating a home inventory video, you can ease this burden, ensuring you have a detailed record of your belongings when you need it most. Steps to Create Your Home Inventory Video 1. Preparation Start by gathering your equipment. A smartphone or a video camera will do the job. Walk through your home, ensuring all lights are on for clear visibility. For dark corners, use a flashlight or the light on your smartphone. 2. Filming Begin with a Sweep: Start with a general sweep of each room to set the scene. Detailed Description: Open all drawers, closets, and cabinets. As you film, describe each item briefly. For example, say, “a set of 12 forks and spoons” rather than filming each one individually. For particularly valuable or unique items, take more time. Pick them up and hold them close to the camera, explaining their significance and details. 3. Storing Your Video Once your video is complete, store it safely. Back it up in multiple places: an external hard drive, the cloud, or even with your insurance agent. This ensures you have access to it when needed.  4. Updating Your Inventory Regularly update your inventory, especially after making significant purchases. Set a reminder to review and update your inventory annually. The Practical Benefits A home inventory video not only helps you remember what you had but also speeds up the claims process. Insurance companies appreciate detailed records, and a video can serve as indisputable proof of your possessions. This can be the difference between a smooth, swift claim process and a prolonged, stressful one. Creating a home inventory video might take a bit of time, but the peace of mind it offers is invaluable. Don’t wait for the unexpected. Start filming today to ensure you and your family are prepared for whatever comes your way. Your future self will thank you!

The latest update in the high net worth insurance market highlights significant changes impacting policyholders. Florida's state-backed insurer secures $3.56 billion in reinsurance for the hurricane season, while Allstate proposes a 34% rate hike for California homeowners. The post also discusses the alarming rise in distracted driving among Gen Z, increasing by 24% from 2022.