Proactive strategies to protect high net worth individuals from crime

The research recently commissioned by Ecclesiastical shows a concerning yet unsurprising trend in high net worth individuals feeling at risk from various types of crime¹. There are genuine and widespread concerns among respondents about personal, property, and family safety, from burglaries at their property and thefts from the person whilst away from home to cyber threats and fraud.

High-profile attacks have also highlighted the trends, but these scenarios aren’t restricted to famous people; they're becoming alarmingly common. Unfortunately, from our perspective at Blackstone, this fear is not misplaced, and we're seeing the same landscape across the UK.

The gap between those who have and those who do not is widening, and there is a growing resentment across society. Watch, phone, and bag thefts in large cities have become the norm, whilst in urban and rural areas, we're seeing an increase in sophisticated, targeted, and aggravated burglaries. In some cases, this is driven by an insider threat, where domestic staff or individuals with access to the property are involved.

We do not anticipate any respite or improvement in the situation, so high-net-worth individuals must take a proactive stance in securing themselves and their property and displacing the risk elsewhere. Criminals are going to burgle properties; they are also going to defraud people and commit theft. Unfortunately, it is about displacing the risk away from you and your property elsewhere through the implementation of a layered approach to security.

As the research from Ecclesiastical reveals, 66% of participants said they would benefit from more crime and security guidance from their insurer or insurance broker. The insurance industry holds a crucial role in building a strong rapport with its clients and ensuring that they are acting as a trusted advisor, guiding high-net-worth individuals through a difficult landscape to navigate. It cannot just be a transactional relationship with limited contact and support. High-net-worth individuals will need support and guidance in improving and enhancing their property security through the recommendation of approved suppliers and known entities. Clients also need to be protected fiscally. Like any industry, there are those within the security landscape profiting on fear, overselling, and underdelivering, leaving clients in a worse place than they were initially.

As well as the immediate impact of these crimes – theft of personal possessions, damage caused to the home, and the need to upgrade and enhance security features, there are also the secondary and often lesser considered impacts that these crimes have. As the research shows, 49% of those who were victims of crime stated they are concerned it would happen again, while 47% say their anxiety has increased. Both figures are significant increases from the 2022 research and reflect the personal side to these criminal acts. It is not uncommon for victims of aggravated burglaries or violent robberies to seek the help and support of counsellors and consider moving home altogether in the aftermath of an incident.

We are beginning to see a more proactive approach where high net worth individuals are taking ownership of their security in advance of any issues taking place – either on the purchase of a new property, or a recognition that existing security is not sufficient.

By taking a proactive stance and leveraging the expertise of trusted security professionals, high-net-worth individuals can significantly reduce their risk and ensure peace of mind.

• Don’t rely on a single system – ensure that physical and technical measures are integrated across the property: deterring, delaying, disrupting, and displacing an attack.
• Understand insurance ratings of safes and match these to your requirements.
• Replace any faulty or broken security measures, such as fencing or security lighting, once identified – security gaps are often taken advantage of by criminals.
• Understand the vulnerabilities of a property when vacant and consider options such as timed lighting and asking someone to visit, giving the impression of activity.
• Liaise with your insurer to ensure that the companies you use for security installations and upgrades are legitimate and trusted.
• Consider the need for an independent security review of your property so that all risk vectors are considered, and guidance is provided for investment.
• Upon purchase of a property, request that any Estate Agents listing be removed from websites to reduce online exposure.
• Register company appointments with an alternate address to limit links to your home address via open-source checks.
• Understand marketing clauses within contractor agreements, regarding the use of images of your property.
• Reset any technical security systems already at a new property, providing you with full ownership and your own passwords and codes.

¹ BVA BDRC survey on behalf of Ecclesiastical Insurance, May 2024, based on 250 UK high net worth individuals with an income of at least £200,000 per annum or liquid assets of at least £1 million, and who have previously invested in at least one type of art/collection.