Great Wealth Migration: How The New Insurance Market Is Expanding | Chubb
Millions of potential clients could benefit from your expertise and advice. At Chubb, we are investing in your business by giving you access to research and experts on the latest trends. Dive in to learn more about these trends.
Chubb fielded a study to understand successful individuals’ priorities, reasons and expectations around their homes and neighborhood preferences as they navigate these changing times. We partnered with Bill Fulton of the Kinder Institute at Rice University to utilize his background in urban planning to provide us with insights as to whether these are short-term or long-term trends.
Key Findings
In our survey, we asked respondents if they had moved since the onset of COVID-19, are currently moving, or are considering moving. We found, 18% of successful families and individuals in 2020 are moving at twice the rate the general population moved in 2019. That means over one million households could be in the market for new insurance and could benefit from your advice.
When we asked where they are considering moving to, we found that a majority of our survey respondents opted to maintain the same lifestyle and access to amenities when moving. Over 70% moved from urban to urban area, and 56% moved from suburban to suburban area
Where People are Moving
These trends have been around for a while
To help us understand what’s happening now, we looked at what was happening in our cities prior to the outbreak of COVID-19. Over the past 10 years, population growth rate in major cities in the US and Canada has declined, in many cases due to rising housing costs and the increasing ability of technology employees to work remotely.
Key Facts
These trends accelerated during the pandemic
Rents are falling fastest in pricey coastal cities amid the pandemic for several reasons including companies allowing workers to work remotely, a desire to move out of urban areas and a need to have more space.
Source: Apartment List (US) and Financial Post (Canada)
We also asked why they were moving. In light of COVID-19, 90% said they needed a change in lifestyle and 81% said they wanted a home with more desirable features.
Factors successful individuals and families considered when moving because of COVID-19
Successful individuals and families are leaving large urban areas and moving to smaller urban spaces. The ability to work remotely and an increase in effective technology has led to smaller city growth across the country.
Source: Redfin
Want to learn more?
Join Mary Parsons, EVP, and Joanna McNamara, VP, from Chubb Personal Risk Services, and Bill Fulton, an expert in urban planning from the Kinder Institute at Rice University, to learn how COVID-19 is changing cities and towns and how you can take advantage of these trends with successful families and individuals.
Successful individuals are moving to new homes and making upgrades to existing homes, which means they are facing new and different risks. Are you taking advantage of these opportunities to advise your clients and prospects about how to stay safe as they transition?
Moving to larger spaces with new features
As people move to larger spaces, such as from a city apartment to a townhome or from a smaller home to a larger home in the suburbs, they may face additional risks. This may be the first time they encounter a new feature such as a working fireplace or the first time they need to purchase a car. They can benefit from your advice on how to protect themselves from this increased risk.
Undergoing renovations
Our research indicates that people are making upgrades to their homes, whether they’re just moving in or staying in the same house.
Leaving a primary home unoccupied for a long time
When COVID-19 first emerged in the U.S., some of our clients moved to their secondary homes instead of buying a new home. That left their primary home unoccupied.
Survey insights
In our survey, we asked successful individuals and families when they planned to move back to their primary residence:
Shift in people working from home
With fewer people working in offices and more people working from home, your clients are facing different and larger risks.
Survey insights
In our survey, we also wanted to understand what would happen if the temporary work-from-home situation became more permanent. This could help us understand long-term trends. When asked if their current employer required them to work permanently from home, our survey respondents answered this way:
Successful individuals are often business owners, it may be useful to share business-specific advice. Click here to learn more.
Top ways to leverage the opportunity for your business
In a time of crisis, you have an opportunity to be the hero by reaching out proactively. In a recent JD Power Study only 42% of independent agent clients said they were contacted to help manage their policy during the crisis vs. 52% of direct clients who said the same.
- Send an email along with a survey in which you ask your clients if they are making plans to renovate their home. Download sample email and survey (To use the email, select the entire email (CTRL + A) and copy and paste it into a new Outlook compose window.)
- Use tools and resources on this resource center to provide advice.
- Post resources on your social media channels to engage with clients and provide advice.
- Contact your centers of influences, share the data, and ask them to involve you if their clients tell them about upcoming moves, and or plans to upgrade their homes.
- You may want to invest in expanding your footprint and take advantage of positive growth trends in these smaller type cities. Be on the front end of the remote worker migration.
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Mortgage Brokers
Mortgage brokers are an important part of the real estate eco system. Develop relationships and partner with them to target realtors.
Art Advisors
More people are buying secondary homes or moving out of the city and into larger homes, buying and installing artwork, and moving items out of storage. An art advisor often helps navigate the acquisition process and oversees logistics.
Agent Marketing Center
Agents and brokers are vital to Chubb’s success. To help you grow faster and more efficiently, we’ve created resource centers, tools, and programming you can use, and are actively investing in research and partnering with industry experts to share with you the best ways to understand and work with successful families and individuals.