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Navigating Risk
and Resilience in High-Net-Worth Insurance
Risk, Readiness and Resilience
The high-net-worth insurance market has been defined by volatility throughout the first half of 2025 as climate-related disasters, rising claims costs and economic pressures have strained insurance portfolios for affluent families.
Carriers continue to review their property exposures in catastrophe prone areas like California, resulting in stricter underwriting requirements and the reduction of coverage options across key asset classes including luxury residences, fine art, yachts and collectibles. Proactive risk mitigation and strategic insurance planning are essential for clients seeking to preserve insurability and financial protection.
However, in previously difficult insurance markets like Florida, some competition is returning, which is helping to stabilize rates. While large catastrophes are still impacting the market, carriers are willing to consider certain risks for a higher premium. It’s a good time for insureds to work with a trusted advisor to ensure they have the right coverage for their assets and discuss what steps they can take to improve their insurability.
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Catastrophe Losses Tighten Capacity and Expand Underwriting Scrutiny
Weather-related catastrophes set the tone early in the year, particularly the devastating wildfires in California, which damaged more than 16,000 structures totaling more than $30 billion in losses.1
Rebuilding after large-scale catastrophes is becoming more difficult and expensive, and tariffs could continue to inflate the costs of construction materials. Labor shortages and supply chain constraints continue to delay restoration timelines and add to rebuilding costs. Clients must now contend not only with the challenge of obtaining coverage but also with navigating complex, protracted recovery efforts in the aftermath of a loss.
Many insurers remain in a holding pattern in challenging regions like California as they wait to see if regulators will allow significant rate increase requests to offset mounting industry losses and ease rebuilding codes to help accelerate post-disaster recovery. In the interim, carriers have either scaled back
available limits or shifted exposure into the excess and surplus (E&S) markets, where pricing is less regulated and more reflective of real-time risk exposure.
As carriers try to reduce their overall exposure to these risks, underwriting has become more holistic and data-driven. Carriers now assess not only the primary residence, but also ancillary assets such as high-end automobiles, fine art collections, yachts and vacation homes. Garaging locations for vehicles, elevation relative to flood risk and fireproof construction methods are all heavily scrutinized on new business and renewals. This has led to more limited coverage options for certain risks and locations.
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Risk Mitigation and Alternative Coverage Options
Clients with proactive risk management strategies are being rewarded with more favorable pricing and improved access to coverage. This includes investments in hardened exteriors, fire-resistant landscaping and elevated garaging for high-value vehicles. Carriers also look favorably on properties with compliant building codes and recent upgrades.
Despite the ongoing challenges, there are signs of optimism for the second half of the year. Capacity to place coverage is gradually returning to previously hard-to-place markets like Florida and the Carolinas, aided by improving reinsurance conditions and legislative reforms. The long-term impact of climate volatility and social inflation will continue to shape underwriting decisions, however, particularly for high-exposure properties and portfolios with layered asset types.
also exploring alternative risk solutions like parametric policies or partial self-insurance to fill coverage gaps. While excess and surplus markets offer needed capacity, they do so with fewer policyholder protections and less predictable pricing. Clients should work closely with their risk advisor to understand the implications of these solutions.
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Preparing for the Remainder of 2025
To navigate this environment effectively, clients must:
Partner with a specialist broker who understands high-net-worth complexity.
Re-evaluate coverage limits, particularly around rebuilding costs and asset valuations.
Consider adjusting deductibles to fund property upgrades and better align with market expectations.
Implement risk mitigation measures wherever possible — clear brush around properties, install fire-resistant materials and water control systems.
Anticipate expanded underwriting across all luxury assets, not just primary homes and begin renewal process early to ensure no coverage lapses.
With the right guidance, affluent families can move from reactive risk management to a position of control — prepared for both today’s challenges and tomorrow’s uncertainties.
Mid-Year Rate Report
Based on proprietary insurance premium data, HUB’s network of experts provides insights into the state of the insurance marketplace each quarter. Download our Rate Report to receive detailed rate insights and learn how insurance rates may impact your total cost of risk.
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About Us
HUB Private Client
When you partner with HUB Private Client, you’re at the center of a vast network of experts who will help you reach your goals and remain resilient into the future. For more information on how to manage your insurance costs and reduce your risk, talk to a HUB Private Client Risk Advisor. We’re here to help.
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Insurance Business America, “Insured losses due to California wildfires to exceed $30 billion -- report,” April 8, 2025.
Many clients are choosing to assume more risk through higher deductibles. Rather than pocketing the premium savings, they are reinvesting in home improvements that reduce overall exposure. These measures not only improve insurability but also contribute to long-term resilience and loss prevention.
As the traditional markets continue to contract, particularly in areas with repetitive CAT exposure, more clients are
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