2025 Insights: Evolving Risk and Coverage Challenges for High-Net-Worth Insurance

Understanding the New Risk Reality for High Net Worth Clients

The latest findings from the 2025 Private Client Insurance Insights Survey by the Private Risk Management Association paint a vivid picture of how quickly the risk landscape is shifting for high net worth households. Economic uncertainty may still command headlines, but the real story lies in how personal exposures like cyber threats, extreme weather, and litigation are rising to the top of client concerns. For insurers and advisors, the message is clear: the industry must evolve from policy placement to holistic risk partnership.

“The industry continues to be more reactive than proactive when addressing cyber threats.”
Erin Strub Halchak, Head of Cyber U.S. Underwriting, Liberty Mutual

A Generational Divide in Risk Perception

One of the most striking survey insights is the growing gap between generations. Millennial HNW homeowners report a much higher degree of anxiety around cyberattacks and potential litigation compared to baby boomers. This aligns with their more digitally integrated lifestyles and their expectations for advisory support that goes beyond standard coverage reviews.

Even though confidence in existing insurance programs is generally high, many clients worry that exclusions may leave them underprotected, particularly in states like California, Florida, Texas, and Louisiana where carriers have tightened underwriting criteria. Securing homeowners insurance in these regions has become increasingly challenging, and as a result, clients are making substantial investments in mitigation such as fire-resistant building materials and reinforced roofing systems.

Coverage Confidence vs. Claims Reality

The survey also reveals a subtle but important disconnect. HNW clients may feel well insured, but those with multiple policies report more claims delays and lower satisfaction with reimbursements. This suggests that complex portfolios require more coordinated advisory oversight to avoid gaps and improve claims outcomes.

“Preparedness and integrated response will define the next generation of cyber resilience.”
Erin Strub Halchak, Liberty Mutual

Only One Section With Bullet Points

The following themes consistently emerged across the survey and broader market commentary:

• Growing cyber exposure among HNW individuals

• Rising difficulty securing homeowners coverage in catastrophe-prone states

• Ongoing litigation risk across all regions and wealth tiers

• Heightened expectations for advisory-driven insurance relationships

• Underinsurance of valuable personal collections

• Increasing need for coordinated wealth, legal, and risk planning

Cyber: The Most Underrated and Underinsured Risk

Perhaps the most urgent challenge lies in personal and commercial cyber exposures. A significant share of HNW individuals have already experienced cyber incidents, yet most remain underinsured. For advisors, performing structured cyber risk assessments has become an essential value driver, especially for younger clients who are highly attuned to digital vulnerabilities.

The broader market echoes these trends. Liberty Mutual highlights how cyber threats have grown more unpredictable and resourceful, particularly for small and mid-sized businesses that lack robust cybersecurity programs. With incident containment and even threat actor negotiation now part of the insurer’s toolkit, clients increasingly expect their carriers to serve as strategic partners in both prevention and response.

The Technology Shift in Underwriting

To stay ahead of emerging exposures, insurers are rapidly modernizing their underwriting approach. Liberty Mutual’s rollout of internal cyber assessment tools, AI-powered underwriting workflows, and future telemetric data integration signals a move toward real-time risk evaluation rather than static annual snapshots.

These tools enable carriers to flag changing vulnerabilities mid-policy and guide insureds through corrective actions. For agents, this means richer insights, stronger client engagement, and more durable coverage strategies.

A Move Toward Holistic Risk Partnership

As physical and digital risks intersect, the role of the insurance advisor is transforming. The most successful agents are those who position themselves as integrated risk partners, bridging insurance with wealth management, legal planning, property mitigation, cyber hygiene, and legacy planning for valuable personal collections.

The expanding suite of services, from risk engineering consultations to ongoing threat education, reinforces the industry’s trajectory toward a more collaborative, forward-looking model.

Looking Ahead

The combined findings from PRMA and Liberty Mutual point to a future where personalized risk guidance and advanced technological tools are the cornerstones of effective insurance strategy. High net worth clients are navigating an increasingly complex world, and the insurance industry is moving quickly to meet them with broader expertise and deeper partnership.

As cyber and physical threats continue to evolve, insurers and advisors who embrace adaptability, transparency, and proactive planning will set the standard for the next era of private client risk management.