With more than 100,000 members in the United States and Canada, and an annual average growth rate of 15% or more in each year since it was founded in 2006, PURE (Privilege Underwriters Reciprocal Exchange) Insurance provides customizable coverage for high-value homes, automobiles, jewelry, art, watercraft, and more. PURE Senior Vice President and Chief Claims Officer Derek Zahn shares strategies for delivering optimal claims outcomes in the high value sector.
With more than 25 years of experience at multinational carriers such as Zurich, AIG, and others, Zahn leads claims operations and innovation initiatives for this specialty insurer catering exclusively to high-net-worth individuals. Without a doubt, it's a choice segment representing more than $40 billion in premium opportunity in North America, and as much as $113 billion globally. Not that this market is free of challenges.
Today, the wealthiest among us collectively own insurable real assets valued at more than $261 trillion worldwide. But with great wealth comes great responsibility — and decidedly complex risks. Despite their ability to accumulate wealth, individuals in this segment don't necessarily have the time or expertise to master the intricacies of P&C insurance. This is especially true when you factor in what can often be a complex web of homes, vehicles, and other assets. High-net-worth individuals aren't any less human or fallible than the rest of us. But they do have more to lose — and more complicated risks to manage.
This creates an enormous number of factors to consider throughout the insurance value chain — including claims. Even as inflation rates continue to moderate, the difference between what an asset may have been valued at bind some 12 to 24 months ago, and what it costs to repair or replace today, can be astonishing. That's especially true in a sector that involves costlier materials and high-skilled craftsmanship. In addition to multiple properties, individuals in this demographic often own high-value art collections, jewelry, antiques, heirlooms, and numerous vehicles. They also tend to live in areas prone to natural catastrophes, such as Florida and California.
Fitted, bespoke coverage is the order of the day — which requires a significant depth and breadth of technological capabilities. In addition to offering digital first notice of loss (FNOL), for instance, PURE leverages digital technologies to keep members up to date on their claims — as well as IoT and other remote sensor technologies to help them avoid costly claims in the first place. The carrier even maintains its own elite contractor network to ensure high-quality work and to avoid the kind of contractor shortages often seen after large catastrophes.
"Our aspirational goal is just to make sure that our members are not calling us to report a claim during a CAT event," Zahn says in a recent episode of the InsurTalk podcast series. "For us, it's how do we utilize the technology to be more proactive." It's a proposition this particular clientele would appreciate — and even just expect — from insurers.
Listen to the full interview here.