For many of us, a standard travel insurance policy will cover the common travel problems and unexpected events that might affect us. But high net worth individuals should consider a much more bespoke service, says Jim Purkiss, Group Sales & Marketing Director at Islands Insurance.
‘I’d like to talk about more unusual considerations that are becoming increasingly relevant for today’s travellers, particularly wealthy individuals and their families who may travel multiple times throughout the year to a number of different countries across the four corners of the globe (why are they corners when the world is round?)
‘You may think that this applies to a relatively small number of people but in fact the number of high-net-worth and ultra-high-net-worth individuals is growing at a significant rate and here in the Channel Islands we are lucky to have a high proportion of wealthy families who contribute to our local economies and social causes. But they have interests all over the world and this requires a degree of regular travel. How do they protect themselves and cover what can often be pretty unique circumstances?
‘For these individuals something like our Bespoke Annual Travel Insurance is generally what is required, offering cover for an unlimited number of journeys, extend trip period and higher cancellation and curtailment limits.
‘Providing cover for wealthy clients is a complex business, requiring a high degree of professional skill, know-how and above all understanding of their personal and family needs, travel plans, activities and the specific risks they might face.
‘Perhaps the two greatest threats to affluent individuals and their families is kidnap and ransom and data breach. The first is clearly a great worry and involves physical danger; the second is often unseen but potentially more likely as they travel between countries and levels of protection and security vary. These are not the only threats of course: they face the same daily problems that we all do – from pickpockets to natural disasters.
‘The difference is perhaps that affluent travellers may be carrying very valuable personal items with them. Quite often these clients will have multiple homes in different countries, and they will travel with their families and personal assistants, nannies or au pairs. As they are moving between homes they may also be carrying with them valuable personal items such as jewellery or other personal items of rarity and value which will be very tempting for criminals.
‘These clients really need travel insurance that protects their entire entourage, on top of the other security arrangements they may take. Even if they are travelling by private jet or super yacht, the risks will be the same as soon as they set foot on a foreign shore. We need to discuss all this with them before they leave on their trip to make sure their specific circumstances are accounted for.
‘By far the fastest growing risk to wealthy travellers is cyber-attack – hacking, identity theft or damage to personal reputation through the theft of data. Many people don’t realise that in some countries, when they log on to their laptop, tablet or even switch on their mobile phone, they might be on a government or unsecured network that is open to abuse. Even if their own devices are protected or encrypted, those of their family might not be.
‘Carrying personal travel documents and other sensitive data opens you up to this kind of attack but there are ways to mitigate the risk, for example our policy includes what we call ‘The Wallet’ which enables each client to have their personal travel and other documentation securely delivered to their own safety deposit box inside the digital equivalent of a high security bank vault.’
Jim’s top tips for wealthy individuals and families travelling are:
- Always research your destinations carefully.
- Know and understand local customs.
- Use a personal and trusted driver rather than drive yourself or using taxis.
- Make sure your personal devices and those of your travelling companions are properly secured.
- Check with government sources such as the Foreign Office about the latest terror threats or intelligence about heightened criminal activity in the country.
- If you are going to transport valuable personal possessions, consider having them delivered by courier instead of carrying them on your person.
- If you are travelling to one of your overseas properties, have it properly security checked before you leave to discover if there has been any unusual activity in the area or there are any signs of illegal entry.
- Speak to your insurer and detail all aspects of your trip so that bespoke cover can be provided for you.
- There are also specialist security firms who can advise you about what steps you can take to avoid the worst happening while you are away.
