Growing market for HNWIThursday, July 12, 2012
According to a recent Global Wealth Report, South Africa will produce more millionaires than 20 other emerging economies by 2016. The report also predicts that the number of local millionaires will increase by 242% to 243 000 by 2012.
In order to service this rapidly growing market, CIB Insurance Administrators (CIB) has officially launched Vertex, a tailor-made insurance product specifically targeted at the high net worth individual (HNWI) market in South Africa.
According to Douglas Donnelly, CEO of CIB, the new HNWI product is a unique and comprehensive asset-based solutions insurance policy. “Given the sustained growth of high net worth individuals in South Africa, we have designed this product to cater for discerning clients, who often need customised solutions to mirror their lifestyles.
“We also understand that the insurance requirements of this market are different and more sophisticated, and we have therefore developed a more comprehensive solution with various asset types to cater for these individuals.”
Donnelly explains that the product is aimed at high net worth individuals of 35 years and older with a main residence contents sum insured at over R1 million and combined insured assets to the value of R3 million or more. “The insurance market thus far has been relatively one dimensional, with not many products tailored to suit specific assets.”
He says that high net worth individuals in South Africa know what they want, recognise value when they see it and expect a high level of personalised service.
“We recognise that this sophisticated customer base sees the world through different eyes and requires an individual approach to safeguarding their most valued assets, which largely consists of items such as fine art collections, exclusive jewellery designs, lavish household contents including high-tech security systems and luxury transportation such as high-performance cars and motorcycles.”
Donnelly explains that the Vertex offering includes features such as a basic All Risk Asset extension cover at no additional cost. “Value at Risk (VAR) is calculated at inception and is valid for a period of two years to avoid the application of average in the event of a claim. An additional feature is the extended basic cover which includes loss or damage by any event not specifically excluded or limited under this policy.
“It also offers an enhanced household contents section with an all-inclusive list of extensions which include, among others, removal of fallen trees, damage to landscaping, medical expenses for guests or domestic employees, personal belongings of grandparents, loss of keys and veterinary expenses."
In addition, vehicles less than two years old which are insured on the policy will be replaced with a new vehicle in the event of a total loss.”
He says that Vertex also features a complimentary list of proficient valuators specialising in jewellery, fine arts, antiques, collectables and silverware who have been carefully selected for their expertise.
“These suppliers understand the demands of this prominent, fast moving market and were selected to facilitate precise and prompt claims settlement,” concludes Donnelly.
by Blue Chip JournalBack