High-Net-Worth Individuals' Top Concerns: Liability Risks and Climate Threats

Liability Risks: A Growing Concern for High-Net-Worth Individuals

According to a recent Chubb survey of 800 high-net-worth individuals in the United States and Canada, 92 percent are concerned about the size of a verdict against them if they were a defendant in a liability case – yet only 36 percent have excess liability insurance.

Climate Threats: A Growing Concern for High-Net-Worth Individuals

High-net-worth people also are deeply concerned about the threats posed to their homes by extreme weather and climate-related events. Much of this concern may be due to increased development in coastal areas vulnerable to tropical storms and flooding and in the wildland-urban interface – areas in which development places property into proximity with fire-prone wilderness.

Third-Party Litigation Funding: A Growing Concern for High-Net-Worth Individuals

Another factor driving up the cost of settlements is the third-party litigation funding, in which firms  provide funding to plaintiffs and their lawyers in exchange for a percentage of the settlement. These private-equity firms began in the commercial space and are now funding lawsuits against individuals and their insurers.

In conclusion, high-net-worth individuals are increasingly concerned about liability risks, climate threats, and third-party litigation funding. To mitigate these risks, it is recommended that they consider purchasing excess liability insurance, investing in climate-resilient properties, and understanding the implications of third-party litigation funding.