Nationwide Exits High Net Worth Market

Interior of a luxury home with a modern glass staircase, representing high net worth insurance, with a special report banner indicating Nationwide's exit from this market.

In a notable industry shift, Nationwide Mutual Insurance Co. has announced and began its exit the of high-net-worth personal lines business. This move underscores the complexities and pressures that have increasingly defined the personal lines market, impacting national and regional carriers alike.

Most notably, Nationwide has decided to non-renew all of it’s private client homeowners, private auto, personal collections, and excess liability business. This move is significant not only because of the size and scope of Nationwide’s operations but also due to the broad enthusiasm with which many carriers pursued the high-net-worth market during the mid-2010s.

For instance, the landmark 2016 merger of ACE Limited and Chubb Corp. into Chubb Ltd. brought together two of the leading players in the high-net-worth market. ACE had cemented its role in this business by acquiring the high-net-worth personal lines business of Fireman’s Fund Insurance Co. This consolidation significantly reshaped the competitive landscape.

Following this merger, other insurers such as Cincinnati Insurance and the Vault Reciprocal Exchange joined Chubb and other incumbents like American International Group Inc. (AIG) and Privilege Underwriters Reciprocal Exchange (PURE) in serving the high-net-worth market.

Why Did Nationwide Leave High Net Worth Insurance?

Nationwide’s decision to exit the high-net-worth personal lines business is part of a broader strategy to streamline its operations. The company announced in June 2023 that it would take specific actions in its personal and commercial lines portfolios in response to strong headwinds brought on by the economic environment, catastrophic weather events, and the impacts of inflation.

Nationwide has been implementing various measures, including requiring certain documentation from prospective customers and non-renewing specific risks in states like North Carolina and Florida. These actions are aimed at improving underwriting profitability and managing exposure to high-risk areas.

Nationwide noted a difficult market as the primary reason for the exit from the high net worth insurance space. Despite these challenges, the company emphasized that the high-net-worth market remains competitive and healthy, referencing other key players like Chubb, PURE, and Cincinnati as continuing to offer similar products.

Luxurious modern home with a pool, showcasing high net worth properties, related to Nationwide Insurance.

Challenges in the Personal Lines Market

Over the past few years, the personal lines insurance market has been significantly challenged by a confluence of factors. These include:

  1. Loss-Cost Inflation: The rising costs associated with claims and repairs have significantly impacted the profitability of insurance companies. The inflation in costs for repairing homes and vehicles, alongside increasing medical costs for liability claims, has put substantial pressure on insurers’ bottom lines.
  2. Reinsurance Concerns: The availability and affordability of reinsurance coverage have become critical issues. Reinsurance, which insurers purchase to protect themselves from large claims, has seen cost increases and availability concerns, adding another layer of complexity for insurers trying to manage risk.
  3. Investor Sentiment: There has been a limited appetite among investors for volatility, which affects insurers’ ability to raise capital. This sentiment is driven by the unpredictability of claim costs and the overall economic environment, making it difficult for insurers to secure the necessary funds to underwrite policies.
  4. Changing Weather Patterns: Increasingly unpredictable and severe weather events have led to higher claims and more significant losses. Events like wildfires, hurricanes, and floods have become more frequent and severe, directly impacting insurers’ financial stability and their approach to risk management.

These factors have coalesced over the past 36 months to create a particularly challenging environment for the personal lines business. The high net worth segment, with its unique demands and expectations, has felt these pressures even more acutely.

Strategic Adjustments by Major Home Insurance Companies

Considering these challenges, several top insurers have made significant strategic adjustments to their business models:

  • Progressive: In November 2023, Progressive announced it would not renew 115,000 policies in its property insurance business in Florida. This decision was driven by financial losses, with President and CEO Tricia Griffith stating that the company was not profitable in this segment.
  • Nationwide: Nationwide has taken a more drastic step by deciding to exit the high-net-worth personal lines business altogether. This decision, first discussed in an October 2023 news release and further detailed in recent product filings, marks a significant shift in the company’s strategy.

Despite these adjustments, there are signs that the high-net-worth segment is beginning to recover and demonstrate resilience.

For high net worth clients, Nationwide’s exit may initially seem concerning. However, the continued strength and competitiveness of other market players ensure that clients will still have access to comprehensive and tailored insurance solutions. Companies like Chubb, Cincinnati, and PURE are well-positioned to fill any gaps left by Nationwide’s departure, providing robust and reliable coverage options.

At Coastal Insurance Solutions, we understand the unique needs and expectations of high value homeowners. Our expertise in navigating this complex market ensures that our clients receive the best possible coverage and support, even as the landscape evolves.

Luxurious apartment with a view of the city skyline, representing Nationwide Insurance's high net worth coverage.

Top 5 High Net Worth Companies in 2024

1. PURE Insurance

logo pure green 1
PURE (Privilege Underwriters Reciprocal Exchange) Insurance was founded in 2006 and is dedicated to serving high-net-worth individuals and families. PURE operates as a member-owned reciprocal insurer, where policyholders are considered members and share in the company’s financial successes


  • High-Value Home Insurance: PURE provides comprehensive coverage for high-value homes, including custom-built homes, historic properties, and vacation homes. Their policies cover the cost of rebuilding to match the original quality, even if it exceeds the policy limit.
  • Risk Management Services: PURE offers proactive risk management services to help prevent losses before they occur. This includes home inspections, safety advice, and recommendations for security enhancements.
  • Personalized Claims Service: PURE is renowned for its exceptional claims service, with a dedicated team that manages claims efficiently and with empathy.

2. Cincinnati Insurance

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The Cincinnati Insurance Company, part of Cincinnati Financial Corporation, has been providing insurance solutions since 1950. The company is known for its strong financial stability and commitment to personalized service.


  • High-Value Home Insurance: Cincinnati Insurance offers bespoke home insurance policies for high-net-worth clients, covering high-value homes, estates, and secondary residences. Their policies ensure full replacement cost coverage without depreciation.
  • Personal Liability: Extensive personal liability coverage protects against potential lawsuits and personal injury claims, an essential feature for high-net-worth individuals.
  • Customizable Endorsements: Policyholders can customize their coverage with endorsements for valuable items such as jewelry, art, and collectibles, ensuring comprehensive protection.

3. Chubb Insurance

CHUBB Insurance146
Chubb is one of the largest and most well-known insurers globally, particularly in the high-net-worth market. Founded as early as 1882, Chubb has established itself as a leader in providing high-quality insurance solutions designed for affluent clients.


  • Masterpiece® Homeowners Insurance: Chubb’s Masterpiece® policy offers extensive coverage for high-value homes, including guaranteed replacement cost coverage, which ensures that homes are rebuilt to their original specifications regardless of cost.
  • Risk Consulting Services: Chubb provides complimentary risk consulting services, offering clients personalized advice on safeguarding their homes and possessions.
  • Valuable Articles Coverage: Comprehensive coverage for fine art, jewelry, antiques, and other high-value personal property with options for agreed value coverage, which means no depreciation deductions in the event of a loss.

4. AIG

AIG ny
AIG, through its Private Client Group, offers insurance solutions specifically designed for high-net-worth individuals and families. With a strong global presence and a reputation for innovation, AIG caters to the sophisticated needs of affluent clients.


  • High-Value Home Insurance: AIG provides customizable insurance policies for luxury homes, estates, and vacation properties, with guaranteed replacement cost coverage and options for cash settlement.
  • Lifestyle Security: AIG’s policies include coverage for home invasions, cyber threats, and identity theft, addressing the unique risks faced by high-net-worth individuals.
  • Enhanced Claims Services: AIG’s Private Client Group offers a high-touch claims experience, with a dedicated claims team that provides personalized support throughout the claims process.

5. Openly

Openly RGB 2
Openly is a newer entrant in the high-net-worth insurance market, founded in 2017. Despite its relative youth, Openly has quickly gained a reputation for leveraging technology to offer streamlined and flexible insurance solutions for high-value homeowners.


  • High-Value Home Insurance: Openly provides robust coverage for high-value homes, including full replacement cost coverage and additional living expenses if a home becomes uninhabitable.
  • Tech-Driven Solutions: Openly uses advanced technology and data analytics to provide accurate and competitive pricing, making it easier for clients to obtain tailored coverage.
  • Customizable Policies: Policyholders can customize their coverage with various endorsements, including protection for personal property, liability, and valuable items such as jewelry and fine art.

The high-net-worth insurance market remains vibrant and competitive, with top carriers like PURE Insurance, Cincinnati Insurance, Chubb Insurance, AIG, and Openly leading the way. Each of these companies offers unique and comprehensive solutions tailored to meet the distinct needs of affluent clients, ensuring that high-value homeowners receive the protection and service they deserve. At Coastal Insurance Solutions, we are committed to working with these leading carriers to provide our clients with the best possible coverage options and personalized service.

Looking Forward: Where Does High Net Worth Insurance Market Go Next?

Nationwide’s strategic decision to exit the high-net-worth personal lines business highlights the significant challenges and pressures facing the personal lines insurance market. Factors such as loss-cost inflation, reinsurance concerns, investor sentiment, and changing weather patterns have created a challenging environment for insurers.

However, the high-net-worth market remains competitive and resilient, with strong performance from key players like Chubb, Pure, Cincinnati, AIG and Openly. These companies continue to demonstrate growth and profitability, underscoring the market’s potential for high-net-worth clients.

At Coastal Insurance Solutions, we remain committed to providing unparalleled service to high-value homeowners and high-net-worth clients. Our deep understanding of the market dynamics and our dedication to client satisfaction ensure that we can navigate these changes effectively, delivering the best possible insurance solutions in an ever-evolving landscape.

Partner With Coastal and Compare Customized Quotes

Successful households have specialized insurance needs. The team at Coastal Insurance works with high net worth households nationwide to provide coverage solutions at the best prices possible.

Reach out to our experienced advisors to learn how a well-designed, high net worth insurance package can protect your home and assets while also saving you money.

Our team of state-licensed insurance advisors will help you compare rates from the finest insurance high end insurance companies, including Chubb, PURE, AIG Private Client, Cincinnati, and Openly.

Coastal Insurance Solutions Awards

About the Author

David W. Clausen is the CEO of Coastal Insurance Solutions. With over 20 years' experience and over 1 billion insured, David and Coastal Insurance Solutions are the recognized leaders in high net worth insurance. For the fourth consecutive year, David Clausen has been awarded Top Producer by Insurance Business America and the 2023 Agents of The Year by Insurance Journal. David is a trusted high net worth insurance expert who’s published more than 200 articles. His articles & press releases have generated over 500K pageviews and has been featured on blogs such as Google News, Yahoo Finance, CNBC, Market Watch, Fox, The New York Times, etc. David founded Coastal Insurance Solutions in 2001 after earning a BBA from the State University of New York College at Oswego.

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IBA's Top Retail Broker 2023
Digital badge for the 2023 Insurance Agents of the Year Award, featuring intricate design elements that symbolize excellence and achievement in the insurance industry.

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