Protecting Wealth and Lifestyle in a Volatile Economy
Sharon Paterson, CEO of Infiniti Insurance Limited
While the country faces economic headwinds, including crime, emigration, and collapsing infrastructure, there is a parallel increase in wealth concentration, particularly in metropolitan areas such as Johannesburg, Cape Town, and Umhlanga. South Africa’s high-net-worth individuals (HNWIs) represent a growing and increasingly sophisticated segment of the population. These are individuals who possess significant wealth asset.
But with rising affluence comes heightened risk exposure, making tailored insurance solutions critical. High-net-worth insurance is emerging as a crucial service designed to protect the financial and personal interests of this elite group.
These three areas of Johannesburg, Cape Town and Umhlanga are expected to double their centi-millionaire populations by 2035, according to the World’s Wealthiest Cities Report 2025. The country’s super-wealthy population is expected to continue growing, particularly among entrepreneurs and those involved in family businesses.
While everyone needs insurance to protect and navigate increasingly complex risks, HNWIs need tailored insurance solutions to protect distinctive and high-value assets. For example, HNWIs are now increasingly investing in off-grid, secluded properties and smart homes. Some of the risks they face include an increase in power surges and lightning, which can damage the equipment needed to run smart homes.
This segment of the market also collects jewellery, fine arts, and vintage cars, and so faces both an enhanced possibility of burglary. Their wealth makes them target for kidnappings. With high crime rates, especially in the cities, clients in such areas must have the correct and adequate cover in place.
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The costs of insuring high-value assets
The country has experienced supply chain disruptions largely as a result of port inefficiencies compounded by the impact of more shipping trade from the East coming around the Cape to escape going through the Red Sea. This has led to an increase in the cost of building and repairing properties as well as the replacement of damaged or stolen assets. The situation is exacerbated by other economic challenges such as load shedding and currency volatility, as well as unpredictable inflation. The rising expenses of skilled labour and construction materials have also made insuring premium residential properties more expensive.
As the wealth of HNWIs becomes more diversified, insurers must develop enhanced products that offer clients elevated coverage wherever possible for all potential risks.
HNWIs need a tailored insurance solution
In this era, high-net-worth insurance in South Africa is more than just a financial product; it is a risk management solution tailored to protect wealth, lifestyle, and legacy. With a growing elite class and increasing economic volatility, the demand for bespoke insurance solutions is set to increase. Brokers and insurers who understand the unique pressures and expectations of this market will be better positioned to thrive in this changing landscape.
A standard policy may not provide the necessary coverage. At Infiniti Insurance, we tailor our policies to the specific needs of the client. We have a broad diversity of covers and policies specific to the client base of our brokers and UMA partners. This can provide comprehensive protection and give peace of mind by addressing the diverse aspects of a wealthy individual’s financial and personal life.
Editor’s thoughts
In a country defined by contrast, rising wealth amidst deepening volatility, insurance must evolve to do more than simply cover loss. It must safeguard legacy. Sharon Paterson’s insights remind us that as the landscape of wealth in South Africa becomes more complex, so too must our understanding of risk and protection. High-net-worth insurance is no longer a niche product, it’s a necessary strategy for preserving not just assets, but a way of life.
As South Africa’s wealthy elite diversify their assets and lifestyles, is your insurance strategy evolving fast enough to match the risks of a rapidly changing world?