Chubb's 2024 Wealth Report: Affluent Households Name Climate, Cyber and Collectibles Risks as Top Threats to Building and Maintaining Wealth

PRNewswire 3-Dec-2024 8:30 AM

With 90% of respondents citing climate change as a leading concern, 92% fearing liability lawsuits, 81% of collectors worrying about theft, and a substantial insurance protection gap across critical areas, Chubb's new report reveals the top risks facing today's wealthy

NEW YORK, Dec. 3, 2024 /PRNewswire/ -- Today's wealthy households face a complex array of emerging risks that threaten their ability to build and maintain wealth, according to Chubb's new 2024 Wealth Report: Cultivating Resilience in a Changing Landscape. In this survey of affluent North Americans, the majority with assets exceeding $5 million, Chubb found that climate change, cyber threats and valuables collection security have emerged as the top concerns shaping how the wealthy manage and protect their assets.

While high net worth individuals are concerned with emerging risks, the survey finds that 63% of respondents say there are more opportunities for building wealth now than ever before, reflecting more optimism than last year, when 66% said that building wealth was more challenging. However, more than half (61%) do not consider themselves wealthy, including many with investable assets of more than $10 million.

"We're seeing a shift in how the wealthy perceive and prepare for risk as they recognize the far-reaching impacts of climate, cybersecurity, and the safeguarding of high value collectibles," said Ana Robic, Division President, Chubb North America Personal Risk Services. "Chubb's 2024 Wealth Report highlights how addressing these concerns requires a more tailored approach that goes beyond standard asset protection, ensuring that affluent individuals can preserve their family's legacy with resilience."

Other Key Findings

• Climate change has become the leading risk for affluent households, with 90% of respondents listing it as a concern—up nearly 20% from last year's report. Among these, 53% report being considerably or greatly concerned.
• Many wealthy families (86%) say they will be spending more on their homes over the next 12 months. 80% of respondents who are concerned about climate change see home renovations as the best time to add sustainable features.

"The scale of recent climate events is driving wealthy families to rethink their approach to property protection," said Jennifer Naughton, Executive Vice President and Risk Consulting Officer, Chubb Personal Risk Services. "Our findings reveal a greater demand for guidance on mitigating climate impacts—from property resilience planning to sustainable renovations."

• The digital lives of affluent families create distinct vulnerabilities, placing cybersecurity among the top risks in this year's report. Identity theft (56%) and cyberbullying (55%) are the top two concerns, with phishing, malware and ransomware attacks cited as additional concerns.
• The report additionally finds that the more assets a family has, the more likely they are to be targeted by cybercriminals. One in six households with assets exceeding $25 million reported that a family member has been victimized by a cyber-related attack.
• Collections of high-value items are a key part of wealth expression among today's affluent, with nearly half planning to acquire fine art, jewelry, cars, wine and other valuables over the next 12 months.
• Protecting these collections is cited as a major priority. 81% of collectors worry most about theft, and 67% believe that damage to their collections during travel is their biggest risk. Nonetheless, nearly a third of affluent collectors report plans to self-insure their new acquisitions, an approach that leaves significant value unprotected.

"High-value collections are a unique and irreplaceable part of many families' legacies," said Laura Doyle, Senior Vice President, Fine Art and Valuable Collections Product Leader, Chubb Personal Risk Services. "Protecting these assets requires specialized expertise and coverage, as they are more than just investments—they're often deeply personal items that families want to preserve for future generations."

• Approximately three quarters of survey respondents with substantial collections say they have already decided who will inherit them—but only 64% have taken the legal steps towards bequeathal.
• Wealthy individuals increasingly express anxiety over liability-related risks. Chubb's report reveals that 92% of respondents are concerned about the potential financial impact of a liability lawsuit, yet only 28% carry sufficient excess liability coverage.

The complete 2024 Chubb Wealth Report findings can be found here.

Methodology
The 2024 Chubb Wealth Report is based on research conducted by Beresford Research. Data was gathered from 800 respondents across North America between July and August 2024, with participants representing a range of demographics and age groups. All respondents possess investable assets of at least $500,000, with the majority having assets exceeding $5 million. The margin of error is +/- 3.46%.

About Chubb
Chubb is a world leader in insurance. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. The company is defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE:CB) and is a component of the S&P 500 index. Chubb employs approximately 40,000 people worldwide. Additional information can be found at: www.chubb.com.

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SOURCE Chubb Limited