Where the wealthy live
A recent report has found that the European country with the largest population of high net worth (HNW) individuals is Germany, followed closely by the UK and France. But it is Poland that shows the most impressive rate of HNW growth – 24 per cent in 2006, compared with Germany’s 9 per cent.
The report also singles out health as the next HNW mega-trend. With spending patterns having shifted in the past 15 years from the conspicuous consumption of the 1980s to more ‘experience-based’ purchases such as adventure travel and spas, the wealthy are looking for the next big thing.
There are a few factors behind this new emphasis on physical health: the first is that Baby Boomers will be in their 70s by the middle of the next decade – in fact, pensioners currently hold 32 per cent of the UK’s personal wealth despite the fact that they only make up 20 per cent of the population. And, as we all know, the older we get, the more potential there is for health problems.
Another reason is that time is now seen as is the ultimate luxury, a belief that could well lead to a surge in demand for medicines, healthcare and medical procedures that can prolong life. And then of course there’s preventative cosmetic surgery – matching the outside with the inside.
What does it all mean? Obviously, there are big sales opportunities for pharmaceutical companies, private health care schemes and spa resorts. But with the numbers of HNW individuals increasing all across Europe, there are plenty of opportunities for brokers as well.
The rising cost of fraud
Insurance cheats are costing the UK more than a billion pounds a yearDeliberately spilling drinks on carpets and burning holes with cigarettes are just two of the ways policyholders are defrauding the insurance industry. And the cheats are pushing up the cost of insurance, adding nearly £40 to the average premium paid each year by honest customers.
A recent survey by the Association of British Insurers (ABI) and YouGov painted a bleak picture: fraud costs the UK a total of £1.6bn a year – £200 million more than previous estimates. For the first time, they also put a value on opportunistic fraud: £800 million a year.
The survey revealed that one in ten of the 7,000 people surveyed admitted to having cheated their insurance company, while 37 per cent said they would not rule out inventing a claim.
Nick Starling, the ABI’s Director of General Insurance and Health, said: “Honest customers should not have to pay for the cheats. We are devoting greater resources to weeding out the cheats, and working to detect and combat fraud.”
One of their proposals is to set up a National Fraud Strategic Authority to devise a fraud strategy with the support from the City of London Police’s Fraud Squad. Nick said: “These figures highlight that greater deterrents, such as criminal prosecutions, are needed to discourage fraud.”
Dear Editor
Last issue, our competition question was: what do you need from insurers to help place more business online?
Here are a selection of your comments:
- "Insurers need to have a webpage that is user-friendly, with a proposal-style format that is easy to complete"
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- "Competitive prices"
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- "A good after-sales service, never forgetting that people like to deal with people"
- "Offer a generous rate of commission"
But there could be only one winner, and she is...
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