Estimated reading time: 5 minutes
Risk Appetite Falls as Digital and Property Threats Intensify
Affluent families are rethinking their approach to risk. HUB International reports a sharp drop in willingness to assume additional exposure. The report finds that 25% of high-net-worth respondents now accept more risk to reduce premiums. That represents a drop from 39% in 2023, according to HUB’s 2026 Private Client Outlook. That trend reflects rising property pressures and escalating digital threats.
Katherine Frattarola, Executive Vice President and Head of HUB Private Client, clearly frames the shift. “Families are being more proactive and responsive to implementing risk mitigation measures,” she said in the press release. “Our role as brokers is to work consultatively to help clients anticipate risk, strengthen their resilience, and make informed decisions that protect them through life events, property acquisitions, digital exposures, and more,” added Frattarola.
The report shows that affluent households’ dynamic conditions can be complex and be exacerbated by rapid change. Economic swings, volatile weather patterns, and daily digital exposures shape risk decisions. HUB states that protection now requires “risk readiness,” meaning knowing which risks a family can carry and staying proactive as conditions evolve.
Personal Cyber Insurance Gains New Urgency
Digital risk now ranks among the most pressing concerns for wealthy households. Nearly three in four consumers have suffered personal data loss or theft in recent years. Annual cybercrime losses now exceed $12 billion, the report states.
This shift drives demand for personal cyber insurance. The report explains that high-net-worth household cyber policies should now replicate those of businesses, including forensic investigation, legal support, crisis PR, and restitution.
HUB stresses that homeowner cyber add-ons rarely respond to modern attacks. That includes wire-transfer scams, crypto losses, and deepfake impersonations. A standalone family cyber policy—described in the report as a deliberate risk-transfer tool—offers stronger protection.
Social and reputational risks compound the need for deeper coverage. Twenty-eight percent of consumers have already experienced a hacked social media account. Online harassment and AI-driven manipulation escalate incidents quickly.
Umbrella policies remain essential, but they seldom cover unconsidered costs. Those include crisis PR, relocation expenses, and digital forensics. HUB identifies layered protection as the emerging norm, with cyber and reputation-specific programs filling gaps.
As we’ve seen with companies, families that adopt stronger cybersecurity and hygiene practices fare well in policy terms. Not surprisingly, HUB notes that carriers view these steps as proof of resilience.
Property Capacity Stays Tight as Renovations Rise
The report describes a U.S. property landscape under strain. Capacity remains limited in California, New York, New Jersey, and Texas. Carriers continue to restrict coverage for wildfire, flood, and coastal exposures. Deductibles that once ranged from $5,000 to $25,000 now start at $250,000 or more in many high-value home policies.
Florida stands out as an exception. Recent reforms attracted new carriers and reduced some rates by as much as 30%, according to the Outlook.
Get The Cyber Insurance News Upload Delivered
Subscribe to our newsletter!
Resilience Becomes a Negotiating Tool
The report shows a strategic pivot toward prevention. HUB highlights resilience investments such as wildfire-resistant materials, water-detection systems, and cyber monitoring. Families can use these measures as leverage in coverage negotiations. Documentation now plays a central role as insurers rely on aerial imaging, wildfire scoring, and detailed underwriting data. Only 55% of households rate their risk reviews as effective, which suggests a need for more transparent reporting and more frequent assessments.
HUB recommends annual reviews at a minimum. Trigger events should prompt additional evaluations. Those events include renovations, new drivers, property acquisitions, and lifestyle changes.
Liability Coverage Faces Pressure From Litigation Trends
Umbrella liability remains underused despite rising verdicts. The report notes that 53% of high-net-worth households feel they have adequate coverage. But many do not hold limits that reflect their actual wealth. Carriers now scrutinize geographic exposure more aggressively, especially in states with elevated litigation activity.
HUB encourages households to align liability limits with net worth and to consider added layers of cyber and reputation-specific protection.
Watch Our Podcast on Personal Cybersecurity and Insurance
Rates Stabilize With Pockets of Improvement
It may be cyber, but the overall cost can impact the addition of specialized policy terms that we’d call personal cyber insurance. HUB’s 2026 rate guide shows softening in several lines. Auto rates may fall up to 5% as profitability improves. Homeowners insurance shows signs of stabilization after three years of regulatory increases. Specialty vehicle lines, including motorcycles, RVs, and watercraft, show rate decreases. CAT-peril pricing is down due to lower reinsurance costs, except for wildfire, which remains challenging.
RELATED PERSONAL CYBER INSURANCE POLICY POSTS
