Life insurers must offer competitive premiums, efficient underwriting and good after-sales services if they want to target high-net-worth individuals, Reinsurance Group of America (RGA) says.

In a white paper on high net worth business, RGA says advisers must show a number of competitively priced products.

“A 50-year-old male, for example, can expect to pay a headline premium of between $US3 million- $5 million ($3.8 million-$6.4 million) for a $US10 million ($12.9 million) sum assured single premium unlimited life policy offered by a rated carrier with an established track record in this market,” RGA says.

Because the client will probably have been introduced to the adviser by a private banker, the underwriting must appear seamless.

RGA says such individuals are used to “white-glove” service. “This means providing realistic underwriting decision timelines, as well as managing the number of medical requirements and the number and nature of financial disclosures needed.

“It is crucial for life insurers to ensure their new business and communication processes produce a seamless experience for the broker, the private bank and the individual.”

Life insurers must have consistent risk appetites when operating in the high-net-worth market.

RGA says bankers and advisers do not want to see changes in risk appetite every month.

“It is crucial for insurers serving this market to adopt a consistent company-wide underwriting appetite that balances both market share ambitions and risk management controls.

“The relatively small group of insurance brokers and private banks that specialise in this market… can respond quickly to changes by life insurers, whether to products or in underwriting appetite.”