Affluence & Global Unrest

Today’s headlines are daunting, and the world is seeing unprecedented levels of turmoil. Supply chain disruption, economic instability, and the threat of terrorism are more prevalent today than ever before. Regardless of whether or not America is directly involved, the global economy is being affected.

While these issues have widespread implications for society at large, successful Americans are grappling with the potential impact on their wealth, assets, and overall financial well-being. The good news is that there are many proactive steps you can take now to safeguard your property, cherished possessions, and family members.

PROPERTY AND CASUALTY. You have luxury homes with custom interiors, high-end electronics, and valuable personal belongings. In times of conflict, risk of damage or destruction increases significantly. Standard US property and casualty policies don’t typically include ”acts of war” coverage, so your risk management plan needs to be reevaluated to ensure that you possess adequate limits.

Additionally, insurers may adjust premiums based on heightened risks, potentially leading to increased policy costs that cover the dwelling as well at its contents. Some may also require detailed security protocols for high-value residences. By reaching out to your broker before an event occurs, you can execute a risk mitigation plan during stable periods when contractors and supply chains are not overwhelmed.

ART AND COLLECTIBLES. Whether your passion is art, jewelry, memorabilia, wine, or cars, international instability can pose a direct threat to the safety of your prized possessions. As a result, insurers may decide to reexamine how these policies are written. You will need to understand the implications for your existing collections - wherever in the world those assets may be located - and make adjustments in advance regarding supplementary coverage.

Insurers could start to require enhanced protocols such as increased security personnel, updated surveillance systems, and even restrictions on the display or transport of items to high-risk regions. Most carriers offer reduced rates for pieces kept in vaults or collections split between multiple residences. It might also be worth exploring secure offsite locations, in case the need arises for emergency evacuation and storage.

Moreover, coverage limitations could be imposed on possessions located in areas deemed to be susceptible to conflict-related damages. You will want to work closely with your insurance broker to conduct thorough policy reviews to confirm that your coverage aligns with evolving risks.

PERSONAL SECURITY. International uncertainties usually raise security concerns, prompting insurers to adjust policy terms based on perceived risks associated with potential conflict. If you engage in high-risk activities or frequently travel to volatile regions, you will likely face challenges securing or maintaining life insurance coverage.

Travel insurance, a staple for jetsetters, may witness an evolution in coverage terms. Insurers could impose limitations for regions they deem to be particularly volatile. If you are accustomed to seamless international travel, you may face more stringent conditions and heightened scrutiny when attempting to secure a comprehensive travel policy.

Kidnap and ransom insurance, a crucial risk mitigation component for affluent or high-profile individuals, will undoubtedly experience a paradigm shift. The increased likelihood of security threats necessitates enhanced security measures, comprehensive assessments, and updated requirements for anyone seeking kidnap and ransom coverage. Securing optimal coverage programs now for yourself, family members, and staff may help you obtain the terms and conditions you need – which may not even be available after a conflict begins.

TRAVEL. If you invest in luxury experiences, travel insurance can provide financial protection by covering non-refundable expenses of trip cancellations or interruptions. It’s more than simply having healthcare coverage if you sprain your ankle in Paris – it could be the key to reaching your final destination safely.

Emergency evacuation. In the unfortunate event of political instability or armed conflict at a travel destination, emergency evacuation may be necessary for the personal safety of you and your loved ones. Travel insurance with evacuation coverage ensures that everyone is swiftly and safely transported to a secure location.

Medical transportation assistance: Health emergencies can happen anywhere, and adequate medical care may not always be readily available particularly if local hospitals are overwhelmed. This coverage provides for medical transportation, including air ambulances or medically equipped flights, allowing you or your family members to receive specialized medical care or return home for treatment.

Travel and baggage delays: Travel delays and lost baggage are common when countries are experiencing unrest. Employees might be called to duty leaving airports, transportation companies, and hotels without adequate staffing. These types of policies provide financial compensation for expenses incurred due to unanticipated transit delays or the loss of personal items. When you have tight schedules and high-value belongings, this coverage can provide peace of mind when navigating complex travel situations.

As conflict looms across the globe, successful Americans face a unique set of challenges when it comes to protecting family, cherished belongings, and personal property. Even if the United States remains on the periphery, geopolitical disruption presents a variety of situations that can impact your future.

Don’t wait. Lockton is here to reduce the uncertainty associated with local, regional, or global unrest. Our goal is to minimize your anxiety and provide you with a plan of action. Together, we will discuss ‘what if’ scenarios that help bring your risk management strategy up to date so you can continue to live your life without undue concern.

While no one knows what tomorrow will bring, you can take these proactive steps today to minimize your risk and safeguard your tomorrow.

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The information provided in this article is for educational purposes only and should not be considered professional advice. Please consult with a Lockton representative for information regarding specific insurance products and services.