Morgan Stanley is making property and casualty insurance available to its high net worth clients and their families as an expansion of its current suite of insurance offerings, it said Monday.
The expanded insurance offerings are designed to “mitigate potential risks associated with property loss and general liability,” the wirehouse said, noting it already has been offering life insurance, long-term care insurance and disability insurance through its Wealth Management Investment Solutions Insured Solutions business.
As of June 30, the firm had 15,399 financial advisors working with $2.7 trillion in client assets. They have average trailing 12-month fees and commissions of $1.21 million.
The firm teamed with insurance brokers HUB International, Marsh Private Client Services and Willis Towers Watson to provide the new Property & Casualty insurance platform to clients, Morgan Stanley said.
Timing of the Move
Asked why the company’s wealth unit began offering P&C insurance now, Joseph Toledano, head of Insured Solutions, told ThinkAdvisor: “We are currently living in complex, unprecedented times where individuals are facing the threat of cybercrime, wildfires [and] hurricanes, which can pose … risks to their financial well-being.”
The executive with Morgan Stanley’s Wealth Management Investment Solutions group added, “These risks are as much of a threat to an individual’s net worth as volatile markets.”
Morgan Stanley’s “priority is to provide” its advisors and clients with “holistic, goals oriented asset and liability management advice to help them mitigate risks, as well as preserve and protect their assets all under one roof,” he added.
Launching the P&C insurance platform “represents an important logical next step and is a natural evolution of our Insured Solutions business,” Toledano said.
Through the new arrangement, HUB, Marsh and Willis will help Morgan Stanley clients in assessing their risk exposures and provide solutions to help them protect their assets, according to the wirehouse.
Although Morgan Stanley enterprise-wide has worked with the firms in some capacity, this is the first time that its wealth unit “has partnered with these insurance brokers,” Toledano said.
Through the new arrangement, Morgan Stanley clients also will gain access to personal insurance lines, including flood and cybersecurity, and commercial lines, such as those insuring against crime, as well as umbrella/excess liability for both lines, it said.
Initial client feedback has been promising since the P&C insurance became available to clients on June 22, according to Toledano. “Clients have really embraced the offering, touting this platform as a ‘true differentiator’,” he told ThinkAdvisor.
“Industry research shows many Americans are woefully under insured and many lack a cohesive strategy to protect themselves from even the most immediate and apparent threats such as liability suits and loss of valuable possessions, which can be detrimental to their financial well-being,” he explained.