How Agents’ Roles Are Changing in the High Net-Worth Market
In 2024, the number of individuals worth over $10 million grew 5.2%, according to “The Wealth Report 2025” by global real estate consultancy Knight Frank. At the $10 million-plus level, the U.S. is home to almost 39% of all wealthy individuals worldwide, nearly twice China’s share. And in the $100 million-plus bracket, the figure rises to over 40%.
As these numbers grow and more high net-worth (HNW) individuals consider self-insuring, agents’ roles are transforming from policy placement to strategic risk advisor. “They help clients evaluate trade-offs, plan mitigation strategies, explore non-traditional markets and stay ahead of renewal surprises,” says Diane Delaney, executive director of the Private Risk Management Association (PRMA). “The best advisors are also the ones who have ongoing, proactive conversations, ensuring clients understand what they’re covered for and what they’re not for before a loss happens.”
2025 National Young Agent of the Year
For agents working within the HNW market, their role in assisting homeowners looking to self-insure is complex. Continuing to work with carriers and gaining access to the same level of rigorous analysis that insurers rely on is essential to make an informed decision.
As the market evolves, agents need to stay aware of ongoing changes. “Most experts anticipate a gradual stabilization over the next two years, but not a return to the soft market of the past,” Delaney says. “Reinsurers are expected to regain footing, which could bring slightly improved capacity. However, catastrophe-prone regions will likely stay challenged.”
“Growth in alternative solutions, such as parametric insurance, and the continued expansion of the excess & surplus market will provide affluent homeowners with more ways to structure their coverage,” she explains. “In short, we’re moving toward a new normal in the HNW insurance space, not a full rebound.”
In the HNW market, “there will never be a dislocation of the insurance brokers,” says Katherine Frattarola, executive vice president and head of HUB Private Client. “As an industry, we need to meet clients where they are, how they want to be met and to provide them with solutions in the way that they want them.”
Considering alternative options, such as reciprocal pools, is where an agent’s trusted advice can benefit a client.
More on homeowners
Over the past few years, the insurance market for affluent homeowners has changed dramatically, with carriers tightening coverage, raising rates, and, in some instances, withdrawing altogether. One in 5 HNW homeowners struggled to find insurance, and nearly 1 in 3 in high-risk states experienced the same challenge, according to the “2025 PRMA Insights Survey.” And while 95% of clients feel confident in their insurance, 65% worry about what’s excluded.
Even as more homeowners look to assume all or part of their homeowners risk, agents remain essential. “Advice, education and insight to help make sense of the complexity of the changing market will always be mission-critical for a HNW homeowner,” Frattarola adds.
Olivia Overman is IA content editor.
