A new trade association has been formed to specifically focus ona segment of the property insurance industry that has “taken off”during the last several years.

The Council for Insuring Private Clients (CIPC) has its sightson developing best practices for providing insurance solution tothe high-net-worth population.

Richard Kerr, CEO of MarketScout, says the Dallas-basedelectronic insurance exchange is a founding partner and developerof the association, which already calls ACE, AIG, Fireman'sFund and Lloyd's partners. A dozen of the largest high-net-worthpersonal insurance firms are on board, he adds.

“It has been phenomenally well-received,” Kerr tellsPC360. “This is a segment of the industry that hasreceived a lot of attention the last few years; independent agentssolely devoted to this product line have popped up everywhere.”

The segment is largely untapped. Kerr says carriers known forspecializing in high-net-worth clients have maybe 40 percentof the business. The rest of the market is with writers such asState Farm, Allstate and Geico—and is largely underinsured, saysKerr.

The CIPC is in its infancy, but it already has an annualconference scheduled for April 2013 in Grapevine, Texas—completewith networking opportunities with professional sports andentertainment agents as well as wealth managers.

“Our goal is to develop a set of best practices and riskmanagement techniques—a common set of goals,” Kerr continues.“These clients are so unique. Providing services for them reallyrequires a unique skillset.

“This isn't just insuring a house and car,” Kerr adds. “This is4 or 5 homes, many cars—driven and showed, plus umbrella, staff,travel, boats, jewelry, art and kidnap and ransom, to name afew.”

And to announce that a person has the specific skillset for thehigh-net-worth niche, the trade group is rolling out a newdesignation—Certified Personal Risk Manager (CPRM), accredited withevery state board of insurance. A CIPC education committee isworking on exams, Kerr says.