High-net-worth homeowners see risk and insurance in very different ways depending on their generation, according to new research from the Private Risk Management Association (PRMA). The study highlights a growing gap in how younger and older affluent homeowners view their protection and what they expect from insurers and brokers.
Diane Delaney, PRMA’s executive director, shared insights from the survey with Insurance Business. She pointed out that millennials and Gen Z are far more aware of risks and more proactive about addressing them. Unlike many older clients who often rely on the belief that simply having insurance means they are fully covered, younger generations actively look for additional protection and advice.
One of the clearest divides is in attitudes toward liability. The research found that 83% of millennials worry about being sued, while only 32% of boomers share that concern. This fear drives younger homeowners to seek out extra coverage and to ask more questions, especially about evolving threats like cyber risks. Over half of millennials surveyed said they would consider buying cyber insurance, compared to just 15% of boomers.
The younger groups also want education. They understand that risks from lawsuits and cyber attacks change quickly and often need expert guidance to keep up. Delaney suggested brokers see this as a chance to act as advisers, offering timely advice and tailored strategies.
On the other hand, older generations like boomers focus much more on traditional risks such as weather events—floods, hurricanes, and wind damage top their list. Despite 95% feeling their insurance is sufficient, 65% still worry about policy exclusions related to weather. Many hold onto the idea that “having insurance equals protection,” but recent stories of denied claims have made them question this.
Technology also separates the generations. Young homeowners are more likely to use smart home devices and expect to manage some insurance tasks digitally. They prefer apps for simple claims but still want personal help for bigger issues. Boomers tend to stick with a more personal, face-to-face experience.
The survey also revealed common challenges. Severe weather is a concern for about two-thirds of all respondents, and nearly a quarter have faced major claims or total losses. Yet, fewer have taken physical steps to protect their homes. Although 60% fear flooding, only 20% have adopted measures like raising their homes. About 40% reinforced their roofs against wind, which is better than expected but still leaves many exposed.
Delaney emphasized that clients need help turning their worries into real action. For brokers working with high-net-worth clients, the research points to the need for personalized approaches. Younger clients want education, digital tools, and coverage that meet new risks. Older clients want reassurance that their protection will hold up when disasters strike.
She also noted that brokers should do more than just sell policies. Many clients face a mix of personal, financial, and broad risks like climate change and political shifts. Brokers can connect these concerns to insurance solutions. For example, if a client is worried about political changes, an advisor might explain how cyber coverage can help.
As wealth moves toward younger generations, those insurers and brokers who adjust their strategies to fit different attitudes will have a better chance of meeting the needs of high-net-worth homeowners in the future.