Shifting Priorities for Affluent North Americans Post-Pandemic

Chubb’s inaugural report, ‘The Wealth Report,’ reveals a significant shift in the spending habits of affluent North Americans post-pandemic. Moving beyond mere possession of luxury items, they are now increasingly investing in entertainment, travel, and education. This shift in priorities also brings new risks to their wealth and lifestyle.

The report finds that 62% of respondents view their homes primarily as investments, with the average value of primary homes being $6 million. Additionally, 46% own more than one home, a number expected to rise, with 43% planning home upgrades or renovations. However, this increase in luxury also leads to increased risks, including climate change and weather-related property damage, particularly in severe weather-prone areas.

Top concerns for the wealthy include damage during renovations, cyberattacks, fire, water damage, and neighborhood crime. To mitigate these risks, many have installed water-leak detection sensors, whole-house generators, smoke detectors, and advanced home security systems. However, there is a notable gap between perceived risks and effective protection strategies.

When it comes to liability exposure, the report highlights the wealthy’s concerns over personal liability, with nine out of ten respondents worried about the size of a verdict against them in a liability case. Despite this concern, only about one-third have excess liability coverage, primarily in the $3 million-to-$5 million range. Major liability concerns include auto accidents, allegations of assault or harassment, and injuries to workers in their homes.

The report also notes the significant increase in the number of millionaires in North America, with a 63% leap in the U.S. and a 23% increase in Canada. Interestingly, two-thirds of these millionaires do not consider themselves wealthy, even with substantial assets and the ability to afford luxury goods and multiple homes.