Chubb's high-net-worth personal lines insurance business may have some new competition, but Chairman and CEO Evan Greenberg and a key executive say those rivals haven't made much of a dent.
"From my point of view we don't see a change of any consequence in the competitive environment over the last year. You get new entrants who come in and they are particularly in the mass-affluent category and not the true high-net-worth," Greenberg said during Chubb's Q4 2018 earnings call on Feb. 6. "They don't have coverage and services and capabilities to really manage the market."
Paul Krump, executive vice president at Chubb and president, North America Commercial and Personal Insurance, said that turnover in its high-net-worth personal lines business has been next to nothing.
"Our retention in the homeowners [high net worth market] is 96 percent," Krump said during the call. "We do lose a couple of customers through death … and maybe on two hands can count the number of accounts we lost [due to] new entrants in the last few months."
Long-time competitors in the personal lines high-net-worth space include American International Group. W.R. Berkley Corp. is one of the newer rivals, having launched its high-net-worth personal lines brand Berkley One in late 2016. In January Berkley One expanded into more states and launched its flood insurance cover in new markets. In April, a number of ex-AIG executives debuted new high-net-worth insurer Vault in Florida, whose majority owner is Allied World.
Chubb itself has continued to expand its high-net-worth operations in other countries (Canada) and to expand and modernize service options. Greenberg said the company has continued to improve its high-net-worth operations as a matter of course.
"We are not arrogant about it. It is like everything else in the world. Standards of service must constantly improve. Coverages must constantly improve. You have to be able to introduced more choice to customers and you have got to be able to do this in a digital world, with customer service and experience that represents that," Greenberg said.
Greenberg added: "We are continuing to iterate and crank up our capabilities in all of those areas, because we think there is, and remains, a large opportunity in this marketplace."
This article was originally published by CarrierManagement.com, the publication for the P/C insurance C-suite.