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Luxury brands

With Willis Towers Watson’s understanding of the luxury brand industry, we can help you manage risk through innovative advice and broking.

Our luxury brand and high-end retail clients operate in a fast-moving, complex and competitive business environment.

With increased customer focus on speed, convenience and provenance, our luxury clients have invested in complex supply chains, bespoke solutions for customer delivery and payment, and the right technology to grow market share.

Technology also supports a positive customer experience with emotional investment in brand community, reflected in many and diverse partnerships with third parties able to help define, develop, promote and support the brand.

From fashion and accessory to hard luxury, there are many common features in the risk profile of clients operating in the luxury sector. However, one size does not fit all.

At Willis Towers Watson we are committed to understanding and supporting the unique culture, business model and operational objectives of each of our luxury clients.

An evolving risk landscape

Corporate risk priorities have shifted to include not just physical, but also ‘people’ assets as brands compete for top talent, and intangible assets such as intellectual property and copyright.

The drift to digitalisation has highlighted data protection and the prevalence of social media has underlined the importance of reputation.

The luxury risk map is being incrementally re-drawn. Along with the more traditional physical loss and damage exposures, the below corporate risks may also now feature:

  • Failure to achieve environmental and sustainability targets.
  • The ability to attract and retaining key talent.
  • Heightened exposure to global terrorism, civil commotion and political risk due to increased geopolitical instability.
  • New and diverse partnerships, joint ventures, projects, product lines which push the boundaries of the business and create new risk exposures.
  • Reputational risk, especially acute in an industry so dependent on social media.
  • Cyber risk, especially in respect of customer and other sensitive data.
  • Crime, including not just the rise in organised theft but digital theft and social engineering.
  • Supply chain transparency and end to end ethical integrity.
  • Natural catastrophe risk resulting in loss of assets or contingent business interruption.
  • Supply chain vulnerabilities in and increasingly global ecosystem.
  • Vulnerability to counterfeiters and loss/ breach of intellectual property.

Luxury is an important and growing sector. Each company has a unique risk exposure, business model and culture. At Willis Towers Watson we combine many years of global luxury experience with a wide range of intellectual capital to address the distinct and specific needs of each luxury client and help them to navigate the changing risk landscape.

What we do

We have a globally integrated Luxury Practice with industry experts in all areas of client servicing including claims management, captive management, programme design and placement with markets worldwide, actuarial analysis, alternative risk transfer, mergers and acquisitions, employee benefits and day to day servicing by teams who understand the luxury sector.

The result is bespoke policy wordings aligned to the luxury risk profile and a risk programme that supports and responds to luxury business and operational needs.

Our clients are leaders in high jewellery and fashion, watches and leather goods, cosmetics and fragrance, luxury automotive, fine art and online luxury sale and distribution.

We can provide clients with the following cover:

  • Marine cargo and jewellers block
  • Fine art and specie
  • Environmental advisory
  • Supply chain consultancy
  • Cyber risk
  • Reputational risk
  • Terrorism and political risk
  • Mergers and acquisitions
  • Remuneration and compensation advisory
  • Clinical trials
  • Product recall
aggregate limit of liability available under new reputational crisis insurance solution
clinical trials placed globally by Willis Towers Watson
countries where Willis Towers Watson service our clients' needs

Willis Towers Watson stats as at 23 April 2021

Why choose Willis Towers Watson?

We use an analytical approach

We can provide you with the data analytics behind the decisions you make on program design and cover requirements. This supports good governance, giving you a clear audit trail of decisions and allows you to present recommendations to your board and internal stakeholders from a more informed, calculated position.

At the most basic level, you will be able to decide whether to transfer or retain risk. By integrating our analytical and broking functions, we take into account current market conditions to ensure we achieve an optimal deal for you, providing best value for money and fit-for-purpose cover.

A proven model for global program management

We have tried and tested processes and structures for ensuring that our clients get the same high-level of quality of service anywhere in the world, and that our local offices are fully aligned with our clients’ needs and objectives.

Our connected team brings the best of Willis Towers Watson to serve you

We have an integrated team approach. We connect experts in your business, industry professionals, and product specialists with key talents from across Willis Towers Watson in a flexible team approach. This enables your core team to work cohesively across boundaries and profit centers, to bring the best of Willis Towers Watson intellectual capital to you.

Our claims service proposition

At Willis Towers Watson, we pride ourselves on our ability to protect the interests of our clients in the management and handling of claims.

We recognize the importance of an efficient claims service in terms of cost savings, brand protection and customer care. We aim to prevent claims before they happen. And if they do, draw lessons from them to better prepare for similar losses in the future.

Case studies

Optimizing risk retention and transfer
Client need

Our longstanding client, a large multinational luxury group specializing in one product wanted a streamlined and simplified insurance placement, which would allow it to substantially increase captive involvement.

What we delivered

We engineered significant savings with the new program design, while successfully retaining a broad form of wording. We also worked closely with the insurer to dramatically reduce information requirements — this was facilitated by a very large deductible — and ensure full compliance in all territories. Fees reflected the placing costs and anticipated ongoing servicing costs of the account.

The value to our client

The client appreciated that we understood the objectives and had the technical ability to deliver the simplification of placement and cost saving while retaining security of cover. The client also relied on our global compliance knowledge and benefitted from specially protected password folders and encrypted emails to protect confidentiality.

Improving the program scope, wording and protocols
Client need

We were ask asked by a luxury goods retailer to undertake a technical audit of a property damage business interruption (PDBI) and inventory program placed in Lloyds by another broker.

What we delivered

We conducted an in-depth assessment of the company, the business, the exposures and objectives. These were risk mapped against the cover in place, identifying several gaps and omissions. A full remarketing exercise allowed us to conduct a full cost benefit analysis for the company, as a result of which the recommendation was to retain the program structure in a much-improved format.

The value to our client

In addition to the competitive premium, a bespoke wording was negotiated to reflect actual exposure. The claims process was simplified, protocols overhauled and the client further benefitted from complete cost transparency.

In this instance, a luxury goods retailer came to us mid-term due to our recognized expertise and credibility in this area. We were able to deliver the check and challenge which significantly improved the existing arrangements to the benefit of our new client.

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