Kurt and his guests delve into the complexities of cybersecurity for affluent families, discussing the growing threat landscape and the importance of proactive risk management. They highlight the need for high net worth families to adopt comprehensive cybersecurity strategies, which include regular education, simulation exercises, and clear rules of engagement. The conversation also touches on the unique challenges faced by high net worth individuals, such as the increasing attack surface due to multiple generations and the involvement of numerous advisors and staff.

Highlights:

1. Proactive Cyber Defense:
   • Emphasis on creating cyber defense plans tailored to high net worth families.
   • Importance of regular education and simulation exercises to prepare families for potential cyber threats.
2. Human-Centered Approach:
   • Cybersecurity as a human-centered problem, integrating technology and focusing on the human element.
   • Social engineering and human error account for 98% of cybersecurity issues.
3. Innovative Solutions:
   • Hard Target's approach to cybersecurity through gamification and tabletop exercises.
   • Development of mental models for cybersecurity similar to playing a board game, enhancing understanding and retention.
4. Real-World Scenarios:
   • Anwar shares examples of cyber threats, including virtual kidnapping and social media exploitation.
   • Importance of creating a family cyber committee to enforce governance and rules of engagement.
5. Emotional Resilience:
   • Focus on building emotional and relational resilience within families to handle cyber threats.
   • Preparing families for the emotional impact of cyber incidents.
6. Cyber Literacy for All:
   • Vision of expanding cybersecurity awareness and education beyond high net worth families to the broader public.
   • Importance of cyber preparedness in reducing vulnerabilities and making everyone a hard target.

Conclusion: Bill Roth and Anwar Visram provide valuable insights into the evolving landscape of cybersecurity for high net worth families. Their innovative approach, combining human-centered strategies with advanced training methods, offers a comprehensive solution to protect against the growing threat of cyber attacks.

Thank You and Resources: A heartfelt thank you to Bill Roth and Anwar Visram for sharing their expertise and experiences. For more information about Hard Target, visit hardtarget.ai. Connect with Bill and Anwar on LinkedIn to stay updated on their latest content and initiatives.

Thank you for listening to this episode of the Private Client Risk & Resilience podcast. Stay tuned for future episodes as we continue to explore innovative solutions for protecting high net worth individuals and their families.

Summary: The episode begins with Ron Fiamma sharing his unconventional journey into the insurance industry, starting from his early career on Wall Street to his eventual transition into fine art and high value collectibles insurance. He highlights his experiences at AIG Private Client Group and the entrepreneurial spirit that led him to co-found Treadwell. Throughout the conversation, Ron emphasizes the importance of understanding and managing the unique risks associated with high value collections, from fine art to couture and collector automobiles.

The discussion covers a range of topics, including the critical role of proactive risk management, the challenges of aggregation in high-risk areas, and the development of specialized insurance products to meet the needs of affluent clients. Ron also shares insights into the vetting process for vendors and the importance of maintaining up-to-date inventory systems for valuable collections.

Highlights:

1. Ron Fiamma's Career Journey:
   • Started on Wall Street and transitioned to insurance.
   • Played a key role in AIG's Private Client Group and later founded Treadwell.
   • Emphasized the entrepreneurial spirit driving his career decisions.
2. Proactive Risk Management:
   • Importance of detailed information for underwriting high value collections.
   • Training brokers to gather comprehensive data about clients' collections.
   • Emphasizing the need for up-to-date inventory systems for clients.
3. Aggregation Challenges:
   • Impact of high-value aggregations in areas like South Florida and California.
   • Issues arising from clients' growing collections and increasing asset values.
   • Strategies to manage and mitigate aggregation risks in high-net-worth insurance.
4. Development of Specialized Products:
   • Launch of couture insurance for high-value fashion collections.
   • On-track motorsports insurance for clients with valuable car collections.
   • Importance of creativity and flexibility in developing new insurance products.
5. Vendor Vetting and Client Support:
   • Rigorous vetting process for vendors to ensure high standards.
   • Providing clients with trusted referrals for various services.
   • Importance of helping clients protect their valuable assets through expert advice.

Conclusion: Ron Fiamma's extensive experience and insights into the high-net-worth insurance space provided a wealth of knowledge for listeners. His emphasis on proactive risk management, innovative product development, and the importance of client relationships highlighted the complexities and opportunities within this niche market.

Thank You and Resources: A heartfelt thank you to Ron Fiamma for sharing his expertise and experiences. For more information about Treadwell Fine Art, visit Treadwell.co. Additional resources and vendor recommendations can be obtained by reaching out to Ron directly at rfiamma@treadwell.co.

Thank you for listening, and stay tuned for future episodes exploring new and innovative approaches to risk management for high-net-worth clients.

Highlights:

• Challenges in High Net Worth Insurance Space: Discusses specific regional insurance challenges like finding hurricane coverage in Florida and fire coverage in California.
• Networking and Support: Emphasizes the importance of reaching out and networking within the industry, particularly through organizations like CIPC.
• Novatae's Strategy: Kerr details Novatae's approach in the insurance market, focusing on acquisitions and service improvement.
• Importance of Quality Submissions: Kerr stresses the need for agents to provide underwriters with clear and complete submissions to secure capacity.
• Council for Insuring Private Clients (CIPC): Discussion on the foundation and objectives of CIPC, highlighting its role in education, advocacy, and networking for insurance professionals.
• Upcoming Conference Details: The conference takes place May 1 and 2 in Dallas, TX at the Warwick hotel. Key themes include artificial intelligence in the high net worth space, capacity finding strategies, and building effective teams in the high net worth sector.
• Professional Development: Highlights the Certified Personal Risk Manager (CPRM) designation and its benefits for professionals in the industry.

For more information or to register for the CIPC conference, visit the Council for Insuring Private Clients website: https://privateclientcouncil.com/.
For more details about Novatae, visit their website: https://novatae.com/.
For more details about the CPRM designation visit: https://www.scic.com/programs/cprm/

Key Highlights:

• Joe Flood's Background: Discover Joe's journey from community activism to leading a flood-only insurance brokerage, advocating for more affordable insurance rates.
• Unveiling Asset Risks: Kurt explores the significant risks faced by successful people through their assets and lifestyle, emphasizing the complexity of protecting large assets.
• Innovative Insurance Solutions: Joe Flood shares insights on creating custom insurance solutions for high-value properties, addressing the gap in traditional flood insurance offerings.
• Market Evolution: Engage in a discussion about the evolving landscape of flood insurance, driven by increasing catastrophic events and new market entrants.
• Regulatory Insights: Gain clarity on the regulation in surplus lines and MGA operations, debunking common misconceptions about non-admitted markets.
• Behind-the-Scenes Processes: Uncover the detailed process of risk modeling and underwriting used by Joe Flood Insurance, demonstrating their commitment to tailored insurance solutions.
• Partnership and Growth Opportunities: Learn how to engage with Joe Flood Insurance for both insurance quotes and professional partnerships, fostering a collaborative environment in the insurance industry.

Whether you're an insurance agent seeking to refine your skills or someone looking to protect substantial wealth, this episode is packed with valuable insights and innovative strategies for navigating the complexities of flood risk insurance.

Resources:

https://www.joefloodinsurance.com/

Thoennessen kicked off the episode by introducing himself and expressing his enthusiasm about having Giles Greenfield as a guest, someone he met at the Private Risk Management Association Summit.

The conversation quickly delved into the nitty-gritty of the UK's private client insurance landscape. Greenfield provided valuable insights, drawing parallels and disparities between the UK and US markets. They discussed how international relationships among UK and US brokers significantly streamline communication, trust levels, and improve insurance program design for high net worth and ultra high net worth clients with properties interests in both countries. 

A major focus of the discussion was the comparison in coverage and underwriting approaches between the two countries. The absence of umbrella liability policies in the UK, as noted by Giles, underscored the UK's less litigious nature compared to its US counterpart.

Both Thoennessen and Greenfield addressed pressing concerns brokers face in their respective regions, particularly the challenges surrounding escape of water incidents. These incidents, especially concerning historical or listed properties, were highlighted as significant hurdles for clients and insurers. 

Overall, this podcast episode offers a comprehensive analysis of the private client insurance market. It not only emphasized the nuances between the UK and US markets but also underscored the pivotal role of international relationships. Furthermore, it shed light on the intricate challenges brokers encounter while addressing distinctive coverage issues in their respective regions.


Resources:
Markham Private Client - https://markhambrokers.com/
What is a listed building article - https://www.mansionglobal.com/library/listed-building
Wondeur AI - https://wondeur.ai/
Private Risk Management Association - https://www.privateriskmanagement.org/

Key topics discussed:

• The role of wind events in driving large, fast-moving wildfires that rapidly spread
• How extended drought and historical fire suppression have built up fuel loads, contributing to more severe fires
• Why ember intrusion, not walls of flames, cause most home ignitions - defensible space is critical
• New standards like the zero to five foot “non-combustible zone” being mandated in CA by 2025 to protect homes
• The wildland urban interface expansion in western states lacking CA’s wildfire building codes
• The impacts of insurance availability and modeling on admitted/non-admitted markets
• The value of wildfire risk education for homeowners that explains the “why” behind mitigations
• Specific home hardening measures (ember-resistant vents, gutter guards, etc.) that make homes insurable

As Mike emphasizes, wildfire readiness education and prevention work must expand outside California to other wildfire-prone states. All homeowners with natural vegetation exposure should proactively mitigate now, before threats grow. Advanced preparation is key to saving homes and making them insurable.

Resources:

1. The ibhs website/standards that Mike mentions explains the "why" behind wildfire mitigation recommendations through videos and other content.  - https://ibhs.org/wildfireready/
2. The ArcGIS product showing expansion of homes in the wildland urban interface, with percentage increases by state from 2007-2020. Allows visual hovering over states. - https://storymaps.arcgis.com/stories/6b2050a0ded0498c863ce30d73460c9e
3. This is an article Mike Thayer read about potential "doomsday" scenarios if a major non-admitted carrier wildfire loss occurred, and the impacts that could have. - https://www.kqed.org/science/1985175/insurance-in-california-is-changing-heres-how-it-may-affect-you
4. The updated CalFire wildfire hazard severity zone maps that recently came out, designating more high risk WUI areas. - https://www.fire.ca.gov/incidents. 
5. All Things Wildfire Podcast - https://allthingswildfire.com/
6. Wildfire Prepared Website - https://wildfireprepared.org/

Mike Thayer's linkedin - https://www.linkedin.com/in/michael-thayer-wms/

Chris explains that social inflation refers to factors outside of traditional economic inflation that are causing the costs of insurance to rise. He emphasizes that the number one driver of nuclear verdicts is anger, which often results from anti-corporate sentiment and the perception that big corporations should be held accountable. Factors contributing to social inflation include:

1. Litigation Funding: Private equity firms and investors are funding personal injury cases, allowing them to drag on and increase costs. These funding companies take significant risks, but they receive substantial payouts when cases win.
2. Increased Medical Costs: Some doctors and medical providers treat patients on a lien and charge significantly higher rates for their services when treating personal injury cases compared to regular health insurance rates.
3. Attorney Advertising: Plaintiff attorneys are skilled at publicizing their settlements and verdicts, sharing their strategies and techniques within the plaintiff bar, which creates a more unified approaches to securing higher settlements.

The discussion also covers strategies for mitigating nuclear verdicts, including accepting responsibility, personalizing corporate clients or individuals, arguing pain and suffering, and demonstrating empathy to jurors.

Towards the end of the episode, they highlight the importance of considering higher policy limits, especially in states and regions with a greater risk of nuclear verdicts.

The episode provides valuable insights into the complex factors contributing to social inflation and nuclear verdicts in the private client space and offers practical advice for risk mitigation.

Resources:
https://www.tysonmendes.com/
https://www.tysonmendes.com/attorneys/christopher-schon/
https://www.tysonmendes.com/nuclear-verdicts/

The discussion delves into the concept of family governance, highlighting its role in shaping how affluent families make decisions, establish structures, and plan for future generations. Susan's real-world examples illustrate the significance of family governance in preventing potential conflicts and chaos as families grow and evolve. She describes various techniques, such as family councils and family assemblies, which provide frameworks for decision-making and representation within wealthy families.

The conversation emphasizes the critical role of effective communication in addressing complex issues related to wealth, legacy, and family dynamics. Susan and Kurt explore the challenges faced by affluent families, from raising children in an atmosphere of wealth to navigating philanthropy and addressing concerns about potential heirs' marriages and creditor claims.

Throughout the transcript, Susan underscores the value of addressing these "soft issues" in wealth management, demonstrating how caring about clients' holistic well-being fosters lasting relationships. This podcast transcript offers profound insights for advisors, highlighting the importance of focusing on the human aspects of wealth when assisting high-net-worth families in building legacies and maintaining family harmony.

• https://www.alliedrestore.com/
• NFPA.org - National Fire Protection Association
• IBHS.org - Insurance Institute For Business and Home Safety
• https://www.usfa.fema.gov/wui/ - Wildland Urban Interface
• California Building Code - https://up.codes/viewer/california/ca-building-code-2016/chapter/7A/sfm-materials-and-construction-methods-for-exterior-wildfire-exposure#7A
• First regulation to enforces nation’s first wildfire safety regulation to help drive down cost of insurance - http://www.insurance.ca.gov/0400-news/0100-press-releases/2022/release076-2022.cfm#:~:text=Commissioner%20Lara's%20regulation%20is%20the,with%20state%20emergency%20preparedness%20agencies.

Our guest for this episode was Fritz Barjon of Highland House USA.  Thank you for sharing your thoughts and expertise with us Fritz!
Fritz@highlandhouseusa.com
www.highlandhouseusa.com

Click the link below to complete a short form to obtain a Kidnap and Ransom insurance proposal from Kurt and Fritz.

Kidnap and Ransom Insurance Proposal Form

• Less than 2% of homes have a water leak detection system in place today. 
• 10% of the water used in a home is lost to leaks from dripping faucets, leaking toilet flappers, etc.
• 1,200 gallons per day is lost on average from a leaky toilet flapper. That is enough to fill an average size swimming pool. 
• 70% of the Earth is covered by water, but only 3% of that is drinkable. Of that 3% only 1% is accessible. 
• Today there are 8 billion on the planet earth. By 2100 there will be approximately 11 billion people and 2 out 3 people will experience a shortage of water. 

Featured Guest:
Mariel Devesa
Global Head of Business Development at Phyn
mariel.devesa@phyn.com

Discount on the Phyn Device for Private Client Risk and Resilience Podcast Listeners.
phyn.refr.cc/kurtthoennessen

 
Interview Highlights:

Automatic water shutoff valves:
- Protect homes from major damage from water leaks.
- Help promote water conservancy
- Flo Technologies Inc. - www.meetflo.com

Smart Thermostats provide an indication of temperature at a second home, which can help prevent damage caused by low temperatures.

Oil level indicators keep an owner aware of the oil level in the oil tanks. This helps prevent a situation where the oil runs out and leaves a home without heat.

Alarm systems are a critical component of a second home's over all protection. There are several components that can be utilized to provide protection to a second.
- Heat / smoke detection
- Motion detection
- Low temperature monitors
- Signal continuity
- Closed circuit TV monitoring
- Humidity monitors

Lightning can cause significant damage to a home's electronics whether there is a direct hit to a property or a there is a strike off property that leads to a power surge.
- Lightning protection systems can help mitigate / prevent damage from lightning. EMP Defense is a technology that is being used for this purpose. https://www.empdefense.us/
- Whole house surge protection is also an effective solution.

Fire suppression systems can also help prevent major damage from fire. Plumis is a technology that is being used to add these systems to homes with reduced need for major retrofitting renovations. https://plumis.com/index.html

WorldClinic provides instant physician access and the latest longevity science to executives, families, and world travelers. Our clients use us to address any medical condition anywhere, anytime.

We care for families and individuals who use our service to resolve 95% of medical issues without ever going to a doctor's office. We leverage genome sequencing, stem cell therapy, and other emerging treatments along with smartphone monitors to maximize longevity.

Contact information:
Alexa Carlin
Phone: (603) 526-9003
Email: acarlin@worldclinic.com 

Dr. William Lang Bio:

Dr. Lang is the Director of clinical policy and services for WorldClinic. He also leads their Occupational Health Practice. Prior to his role at WorldClinic Dr. Lang served for over six years as the Chief Operating Officer of the White House Medical Unit. Throughout this period, he also served as Deputy Physician to the President of the United States. He has been dedicated to the practice of family medicine since he began his medical career in 1987 after finishing his medical training at the Uniformed Services University of the Health Sciences. 

Podcast highlights regarding COVID-19:

• Millennials and younger folks who may be considered low risk from this novel Coronavirus should do what they can to protect the people who are considered high risk. 
  • High risk people include:
    • Older adults
    • People who have serious chronic medical conditions like:
      • Heart disease
      • Diabetes
      • Lung disease

Podcast highlights regarding telemedicine and WorldClinic:

• WorldClinic is a leader in the field of telemedicine and has practiced it for over 20 years. 
• Telemedicine gives patients of WorldClinic the ability to skip the long waiting lines at hospitals and doctor’s offices and receive the care they need just by picking up the phone. 
• Technological solutions are used to deliver care to patients and to monitor their well-being remotely. 
• WorldClinic maintains up to date medical files for each of its patients. This enables their physicians to provide care their patients can trust and objective oversight of any medical situation their patients are going through. 
• Telemedicine allows physicians to provide a high level of care similar to way family doctors used to deliver it by eliminating many of the logistical issues involved with in-person care.
• Many successful individuals are considered “Global Citizens” because they own property in multiple countries or because of the significant amount of travel they do outside their home country. WorldClinic is a valuable partner to have in these situations since they maintain a complete medical file for each patient. Therefore, no matter where the patient is in the world, WorldClinic can provide trusted objective oversight as well as physical assistance for their patients. 

Show links:

• https://www.cdc.gov/coronavirus/2019-ncov/
• https://www.who.int/emergencies/diseases/novel-coronavirus-2019
• www.Covid19.worldclinic.com

Kurt Thoennessen, VP at Ericson Insurance Advisors, discusses the risks of owning a luxury second home with Dan Sweeney, President of Danco Management.

Danco Management LLC offers property and grounds management services for owners of luxury homes in and around Litchfield County Connecticut.

Featured Guest:
Danco Management
President - Dan Sweeney
http://dancomanagement.com/

 
Interview Highlights:

How is owning a second home different than a primary home? 

·         Second homes can be seasonal usage, periodic uses or both. Seasonal homes develop concerns due to inconsistent usage and in a lot of instances the concerns go unreported (out of sight, out of mind). The fact that they may be dormant poses potential issues when it comes to the overall preservation plan.

What are the added risks? 

• Limited occupancy – Houses, like vehicles, do not do well if they sit dormant. Systems should be used on a regular basis to ensure proper operation and to identify any issues that may arise (plumbing, water filtration, generators, doors, windows, etc..)
• Rental exposure - From a property management standpoint, the care and usage exposure is a variable often difficult to narrow in on. Renters and guests may not understand the home’s systems and operation. Their use of the home may result in costly repairs and frustration for both parties. 
• Unprotected – Second homes may be located far from the normal protections that primary homes benefit from such as a fire department, water source and other protection services. 
• Vacation spots - With the erratic weather we have had over the last several years, homes we manage have really been well tested from an elements standpoint. Ice, rain, droughts, etc. 
• Maintaining heat - My experience is that aside from the water damage exposure, fit and finishes don’t like large temperature and humidity swings (cabinetry, trim, flooring to name a few). Performance built homes have many variables that are factored into a home’s performance and manually disturbing that calculation can lead to potential issues.
• Monitoring water use - Water conservancy is a huge concern for any home where an onsite water well is the domestic source. Also, there is a need to monitor areas where conservation measures can be implemented.

What are some of the most common issues that arise in second homes? 

• ·         What are the maintenance issues? Deferred or unidentified issues such as mechanicals, exterior surfaces and infrastructure lead to costly capital expenditures.
• ·         What are the insurance issues? Gaps in coverage based on usage,  geographical factors not allowing for prompt response, updating property status and revisiting policy coverages (additions, upgrades to interior, wine rooms, art galleries, etc..)
• ·         Changing the usage without considering the impact on your insurance. Surprising the insurance provider with new information at the time of new claim

What services do you provide? 

• ·         Property preservation/maintenance/management, construction management

Do you have a specific service for homes that are being rented on home sharing sites? What does that look like and what are the risks? 

• ·         AirBNB and second homes - Local ordinances may cause a property to operate outside of regulations. Properly managed, some properties can have revenue streams to offset operating expenses and ensure home is being used. Wear and tear by others can be concern, if not clea

1. Prepare and plan
2. Predict and prevent
3. Respond and recover

Each of these areas targets are certain aspect of risk management that should be incorporated into a comprehensive personal risk management plan. This episode goes into further detail about what is involved with this type of plan and how it can be developed.