The high-net worth segment is growing, and with that growth comes a need for more specialized insurance products and advisors, according to two high net worth insurance veterans and founding trustees of the new Private Risk Management Association, Sandra Bravo and Lisa Lindsay.
The member-owned, not-for-profit association began in March to provide resources, educational opportunities, awareness and advocacy to those involved in this class.
“This association is for professionals – and I wouldn’t even limit the professionals to those in the insurance arena, meaning high-net worth carriers, agents and brokers – but also other professional services firms who interact with the high-net worth, and the wealth management industry,” says Bravo.
Bravo serves as president of PRMA and previously worked in the industry for 40 years, and most recently retired as CEO from Willis Personal Lines. Lindsay formerly served as president of Marsh’s Private Client Group and is now secretary of the new association.
Other trustees include: Ross Buchmueller, PURE Group of Insurance Cos., Ray Celedinas, Celedinas Insurance Group, Robert Courtemanche, ACE Private Risk Services; James P. Kane, USI; Susan Ogrodnik-Smith, Hub International; Gary J. Pasternack, Bessemer Trust, and Nicki Colosi Trilling.
A big focus for the PRMA, say Bravo and Lindsay, will be to develop more professionals to serve the segment, which they agree it is currently lacking. Through educational opportunities such as webinars, meetings, seminars and conferences, they hope to bring people together to grow talent in this area.
“We’re really going to work at having a member-owned organization to collaborate, help each other and help lift the category of the high-net worth insurance marketplace,” says Lindsay.
The PRMA will look for professionals – including agents and carriers – who serve the high-net worth industry and can bring value to the association or contribute subject matter expertise. Memberships are available for individuals or corporations through the PRMA’s website.
PRMA also plans to hold annual meetings for its membership, with the first happening this fall, although no official date or location have been set yet. Next year, the association hopes to launch course curriculum that specialists can take to receive a high-net worth designation.
“Our intent is to really structure something that’s very robust – something along the lines of the CPCU or the CLU – those types of designations that are very deep and require a really substantial commitment by the professional seeking to obtain that designation,” says Lindsay.
The PRMA does not plan to offer insurance to the segment. Bravo says they will leave that up to the insurance industry.
Bravo and Lindsay agree there has been increased attention on this segment from the overall marketplace – including insurers and consumers, and the association hopes to help develop specialists to take advantage of the opportunities.
“In order to have an overall solid financial plan, managing risk has to be part of it – whether it’s investments, or for us – the insurance pieces of it,” says Bravo. “[High-net worth consumers] are always looking for more value for their premium dollars. And I think the industry is working very hard to provide those things to this underserved market.”
For more information on the new Private Risk Management Association and its objectives, as well as Lindsay and Bravo’s expectations for the high-net worth segment, please click on the podcast below: