Why Closing Your Clients’ Insurance Gaps Matter
A client’s wealth doesn’t stand still. So, why would their insurance? And yet it happens all the time: Policies grow stagnant.
According to Chubb’s 2025 Wealth Report, roughly 81% of the high-net-worth respondents said they did not carry excess liability insurance. (The survey spoke to 1,000 North Americans with at least $1.5 million in investable assets.) At the same time, they remain deeply worried about the risks of not having it. More than two-thirds of respondents said they are concerned about the potential size of a liability verdict against them — such as one related to a climate disaster, personal injury lawsuit, or cybersecurity event.
Concerned about liability risks but not taking action. How does that make sense? Chubb’s research points to several reasons. For one thing, many people believe an existing policy offers more coverage than it actually does. As financially successful people accumulate different assets, they mistakenly think that old policies will protect them. Others feel overwhelmed by the task of getting a quote or choosing a policy and go without it.
That’s exactly where a licensed financial professional can step in. They can be a trusted voice that helps clients see the value in comprehensive insurance, and they are also uniquely positioned to identify gaps in coverage. Often, licensed financial professionals are already working with a client’s CPAs and estate attorneys, offering a holistic and up-to-date understanding of their financial life.
As part of an overall strategy to maximize wealth, they can regularly assess insurance coverage. After all, an incomplete insurance strategy leaves wealth exposed.
Clients Trust You
Your clients’ financial picture will change over time. Their income may increase. They might acquire a new home, purchase valuable property, sell a business, or accumulate an art collection. Yet, as we’ve already established, their insurance coverage will often remain unchanged — unless they get a little nudge.
That’s why licensed financial professionals should provide regular insurance reviews of clients who might have insufficient or outdated coverage, especially as their net worth changes.
Although an insurance professional can recommend a particular policy, they don’t have the full context that’s available to a licensed financial professional. For example, they may not know that the client is approaching retirement or that their family circumstances have changed. But a licensed financial professional will be able to spot the major life events that should reasonably prompt a review of insurance.
All that makes a trusted financial professional the best person to ask a simple question of a client: Has your insurance strategy kept up with the rest of your financial life?
You’re Not There to Sell Insurance
The goal of an insurance audit is not to recommend that a client purchase additional coverage.
Instead, the goal should be to find out whether their existing coverage still makes sense. You might reveal that they’re underinsured. Conducting a review can uncover gaps that might otherwise go unnoticed. But you might also reveal that certain coverage is no longer necessary or that the client could benefit from different policy features.
Think about a client who has spent years building a substantial investment portfolio. Now imagine they suffer an uninsured or underinsured property loss, forcing them to liquidate investments. The consequences might extend far beyond the insurance claim itself. A retirement goal could be delayed. A planned purchase could be postponed. A legacy strategy could be disrupted.
In that sense, insurance can serve as a protective layer around an overall financial plan.
When Do You Audit Insurance?
An insurance review doesn’t have to be a standalone project. In many cases, it can be incorporated into a financial planning process that’s already established with a client.
For licensed financial professionals, it’s especially important to look out for triggering events. These are events — which might be revealed to you during check-ins, tax preparation, or informal correspondence — that should prompt a reassessment of existing policies, such as:
● A significant change in income: If income increases significantly, existing life or disability coverage may no longer provide the same level of protection it once did.
● A major asset purchase: A new home, vacation residence, or other significant acquisition can change a client’s property and liability exposure. The Chubb research specifically recommends revisiting Property & Casualty coverage when clients purchase real assets.
● A business sale or transition: Selling a business can fundamentally change a client’s balance sheet, income stream, and estate plan. It can also eliminate one source of risk while creating others. A client who has just received significant liquidity from a business sale may have a very different insurance profile than they did when the business represented most of their net worth.
● Changes in the family: Marriage, divorce, the birth or adoption of a child, the death of a family member and other changes can all affect insurance needs and beneficiary designations.
● Approaching retirement: Retirement can change both sides of the equation. A client may no longer need the same amount of income replacement, while their accumulated assets and liability exposure may be greater than they were during their working years. That makes retirement planning a natural opportunity to revisit insurance alongside investments, income and estate planning.
Whatever insurance a client ultimately maintains, it should fit into the bigger picture.
You Don’t Need to Be an Insurance Expert
None of this means licensed financial professionals need to become insurance specialists. In fact, they shouldn’t try to be.
The more valuable role is to recognize when an insurance conversation needs to be had with a client, and to position yourself to identify potential gaps and bring the right specialists into the process.
The licensed financial professional doesn’t have to answer every insurance question. But they can ensure the question gets asked. The best financial plans also prepare for what could go wrong. Insurance policies are an important tool in protecting a well-laid plan.
Bottom Line
The most successful licensed financial professionals of the future won’t be those who try to master every discipline. They’ll be the ones who know how to bring the right experts together at the right time.
If you’re looking to build a more comprehensive planning approach that includes thoughtful, personalized insurance guidance, AIMCOR EIG can help. Our team works alongside financial professionals to identify coverage gaps and integrate insurance solutions into broader wealth, tax, estate, and business succession strategies.