High-net-worth homeowners are hardly strangers to risk. However, new research from the Private Risk Management Association (PRMA) suggests that how they perceive risk, and how they expect their insurers and brokers to respond, depends heavily on which generation they belong to.
In an interview with PRMA’s executive director, Diane Delaney (pictured), the survey results indicate a widening divide between younger generations of affluent homeowners and their Gen X and Baby Boomer counterparts.
For insurance agents and brokers, this disparity calls for different communication and education strategies, Delaney told Insurance Business.
“What stood out from the survey is that younger generations are more aware of the risks in front of them,” Delaney said. “They’re not as reliant on the traditional mindset of ‘I have insurance, so I’m protected,’ which we still see among many older clients, who tend to be more resistant to adding different coverages or making changes to their homes.”
As wealth shifts to younger generations, insurers and brokers who adapt their approach will be best positioned to serve the high-net-worth market of the future.
The most striking difference between the generations is their attitude towards liability.
“Millennials and Gen Z are far more concerned about being sued than older generations,” Delaney said. “In our survey, 83% of millennials said they feared being sued, compared to only 32% of boomers.”
That heightened awareness translates into a more proactive approach to risk. Younger homeowners are not content to assume their standard coverage will protect them. Instead, they actively seek out additional products, especially in areas where exposures are rapidly evolving.
Cyber insurance is a prime example. Over half of millennials surveyed (54%) by PRMA said they would consider purchasing a cyber policy, compared to just 15% of boomers. “That’s a huge disparity,” Delaney noted. “Younger clients are not only receptive to coverage, they’re actively asking for advice on how to protect themselves.”
Beyond products, younger homeowners want education. They know that lawsuits and cyber threats evolve so quickly, sometimes month to month, that they can’t keep up alone.
This creates a clear opening for brokers, said Delaney. With millennials and Gen Z, advisors can position themselves as educators and risk consultants, helping clients navigate exposures that are both complex and fast-changing.
By contrast, older generations remain more focused on traditional risks. “For boomers, the big concern is weather,” Delaney said. “That was actually universal across all generations—floods, hurricanes, wind. But the divide came with lawsuits and cyber.”
The survey revealed a contradiction: 95% of respondents said they felt their insurance coverage was enough, yet 65% admitted they were worried about exclusions, particularly around weather-related claims.
“That reflects an older mindset: ‘I bought insurance, so I’m protected,’” Delaney said. “But then they hear stories of claims being denied and start to question whether they’re really covered.”
This disconnect presents another opportunity for brokers, she said: to clarify what is and isn’t included in policies and help clients understand where gaps exist.
Generational differences also show up in attitudes toward technology. Millennials and Gen Z are far more likely to adopt Internet of Things (IoT) devices, or smart home tools that can both prevent and create new risks, the PRMA survey revealed. They also expect digital interactions from insurers.
“They want to handle simple things like submitting a claim through an app,” Delaney said. “But for more complex issues, they still want human advice. Boomers, meanwhile, often prefer the traditional personal touch.”
The findings underscore the fact that a “one-size-fits-all” service model is no longer effective. Addressing the generational divide on insurance will require a hybrid approach that blends digital convenience with personalized guidance.
Despite their differences, some concerns cut across all demographics. Severe weather was a top issue for about two-thirds of respondents, and a quarter reported experiencing a major claim or even a total loss. Flooding and hurricanes ranked highest, at around 60% each.
However, when asked what steps they had taken to protect their homes, far fewer had taken any action.
While 60% feared flooding, only 20% had implemented physical protections beyond insurance, such as raising their homes. Roughly 40% had reinforced their roofs to resist wind, which was higher than expected, but still left significant exposure.
“Clients are already worried. They just need help turning that fear into concrete steps to mitigate risk,” said Delaney.
The generational divide underscores the need for customized engagement. Millennials and Gen Z seek education, digital tools, and proactive strategies addressing emerging risks, such as cyber and liability. Boomers and Gen X, while less inclined to adopt new coverages, still need reassurance that their policies will stand up when disaster strikes.
Delaney believes brokers must expand their role beyond selling products. “The key is recognizing that clients across all generations are facing multiple concerns: personal, financial, and macro-level risks like climate change, political instability, and market volatility,” said Delaney.
“We can’t control global events, but we can connect them to risks we can mitigate. For example, if a client says they’re worried about political change, we can pivot to talking about related cyber exposures. It’s about connecting the dots between their broader fears and the protections we can offer.”
