Yet Chubb faces the challenge of having to impress all of its HNW clients when the majority of them will likely never experience what the company says is its best feature: claims handling.

Chubb works to impress its private clients by making note of their likes and hooking them up with tickets to events. The company regularly invites its HNW insureds to prestigious collector-car and fine-antiques shows nationwide. The company sponsors the elite Winter Antiques Show, held in late January at the Park Avenue Armory in Manhattan.

“Nothing says 'I understand you' like inviting you to an event that you would like to attend,” says Fiske.

A similar approach is taken with customers who are car hobby enthusiasts: Chubb Collector Car Insurance invites its HNW automobile collectors to prestigious annual events it sponsors, like the annual Bloomington Gold classic Corvette show held in Champaign, Ill. Chubb also serves as the exclusive insurance sponsor for Gooding & Co., a leading classic automotive auction house that handles auctions in Scottsdale, Ariz.; the Amelia Island Auction in Fernandina Beach, Fla.; and the Pebble Beach Auctions held in Pacific Grove, Calif..

Spreading good will amongst its elite clientele is a critical move, says Fiske: “In the absence of a claim, why would somebody say something nice about us?”

Indeed, it is in claims handling where high net worth carriers truly compete, says Charlotte Edmonston, national niche managing director for broker Arthur J. Gallagher in Baton Rouge, La. She deals exclusively with HNW insurers.

“These companies really focus their expertise on claims. That's where they shine,” says Edmonston. The insurance products among the handful of companies she represents can be fairly similar in coverage and price, so much of their attention and budgets are spent on ensuring that the client's experience is a positive one when a claim does occur.

The more comfortable a HNW client  becomes in their lifestyle, Edmonston notes, the higher their expectations are at claims time—whether they're a multi-billionaire or a working professional living in a $1 million home. What matters to carriers most is managing those expectations.

“Claims are where the rubber meets the road: It is the be-all and end-all of what we do,” says Jerry Hourihan, executive vice president of AIG's Private Client Group & CMO/AIG Personal Lines in New York.

AIG's claims personnel are trained to go above and beyond for the HNW client. He recalls one instance in which an insured lost a prized piece of jewelry while boating on a lake—and she wasn't after the replacement cost.

“Typically, it would be easier to write a check for the insured amount, but she wanted that item back; it was of sentimental value to her,” Hourihan says. “Our Claims person hired a diver to go into the spot on the lake where the bracelet was and return the item to the client.”

Having claims adjusters who are schooled to come up with solutions on their own plays out better when servicing HNW clients than simply paying claims—which breeds satisfaction that's measurable by good retention and growth rates.

“Our Claims are at a rate north of 98 percent and our client retention rate is north of 90 percent, and has been throughout our time,” Hourihan says. Claims approval ratings among carriers serving this market are the most important thing for agents and brokers to be aware of, he stresses.

SANDY RESPONSE: ABOVE & BEYOND

Before Superstorm Sandy, AIG's Hurricane Protection Unit contacted high net worth clients to make sure they were prepared. In the days after the storm, the Unit worked side-by-side with Claims staff knocking on doors, leaving notes and helping with claims.

Martin Hartley, a founding member and Chief Underwriting Officer of Privilege Underwriters Reciprocal Exchange (PURE), a six-year-old HNW insurer, says HNW brokers and carriers outperformed the standard carriers with better claims-service delivery.

Prior to the storm's arrival, PURE's claims adjusters provided clients in the hurricane's path with the company's Claims contact information—phone number and e-mail—and gave each insured a smartphone app through which they could track the storm as it approached, saying, “Call us or e-mail us if you have any problems. Get to us immediately,” Hartley recalls. “We want to know fast, so we can get on it fast.”

As a result, some 45 percent of PURE's membership interacted with the app before Sandy hit.

The PURE Claims team also called every insured in the path of the storm a second time, in case they hadn't been receiving their e-mails and needed information. Providing such a level of service above the standard insurer gives clients a sense of the carrier's speed and delivery, says Hartley.

“The claims process is the most important thing,” he adds. “Really, what we're selling is response.”

UNIQUE EXPOSURES

The types of assets insured by HNW clients require “a very different” claims handling process, says Eric Shanks, senior vice president and chief underwriting officer of high net worth personal insurance for Fireman's Fund. For example, many such clients own homes that have unique property exposures, like custom construction or historic elements.

Some homes may require a particular type of craftsman for rebuilding, requiring above-and-beyond measures to locate and bring in a specialized labor force, he says. Such homes could also include custom-made furnishings at a high replacement cost.

Because they pay more than the standard policy, HNW clients expect premium service. “With that should come an expectation on a fast, fair and understanding claims-settlement process,” adds Shanks.