Regardless of their net worth, all international travellers face similar types of risks, such as medical emergencies and crime. For UHNWIs, however, the consequences – and the likelihood, unfortunately – of mishaps can often be relatively greater. Wealthy travellers tend to spend more on ensuring superior travel experiences and have more at stake in case of logistical issues. Moreover, UHNWIs are at a higher risk of being targeted by criminals who know that security can be more challenging to maintain during travels.
The solution, as in so many aspects of life, is proper planning. Here are three essential points for UHNWIs to include on their pre-trip checklist:
01 Adequate insurance and medical care
Unmet expectations for a travel experience are always disappointing. Adequate travel insurance can soften the blow. Whoever is making a UHNWI’s travel arrangements should pay particular attention to ensuring that all planned activities – which might include luxury car hire and concierge services – are covered. Paying for these activities with a credit card that provides automatic coverage for such purchases is often a simple solution.
Also, UHNWIs are accustomed to receiving top-tier medical care which may be more challenging to organise outside of their home countries. UHNWIs will often be covered at all times by the best available medical insurance policies, but the quality of the best available medical care in different countries can vary and is worth investigating prior to departure. Countries frequently mentioned for high-quality medical care include the United States – which also tops global medical insurance provider MSH’s list of the countries with the most expensive medical care – as well as Switzerland, Singapore, and Japan. Using average physician salary as a proxy for medical care quality, Switzerland beat out the United States and Luxembourg to lead the world.
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02 Personal security precautions
Sadly, UHNWIs are prime targets for kidnapping and ransom. This risk is particularly high in certain regions with a history of such activities, where it is not uncommon to find UHNWIs travelling with bodyguards and armoured vehicles.
Prior to a trip, assess the likelihood of such crime and take appropriate precautions. Current kidnapping hotspots, according to a representative of insurance brokerage Miller, include Mexico, Yemen, and India. Before visiting another country, UHNWIs are advised to check governmental advisories like the one published by the Swiss authorities regarding trips to Mexico. Also, specialist consultancies like Control Risks often prepare detailed risk assessments on countries around the world.
Regardless of where a UHNWI is travelling, it is always best practice to exercise discretion. For example, sharing trip plans and current geolocation information on social media almost always creates unnecessary risk. Keeping a low profile is a simple (and free) way to avoid targeting.
03 Cybersecurity precautions
While unwelcome, the financial consequences of having a passport or valuables lost or stolen are usually limited and fairly straightforward to insure against. However, the financial (and potentially reputational) consequences of data security breaches – for example, via a smartphone or laptop physically controlled by a sophisticated attacker – are notoriously complex to assess and recover from.
UHNWIs travelling with devices used to access wealth information should take cybersecurity precautions, such as using a master-password-protected password manager (instead of saving login information in browsers) and enabling at least two-factor authentication to access online financial services. Three-factor authentication is even better, as an attacker would need to have physical control of at least two devices instead of one to gain access.
The Altoo Wealth Platform is an ideal digital travelling companion for UHNWIs wanting to maintain comprehensive visibility of their wealth while on the road. Available via the web and a dedicated mobile app with up to three-factor authentication required for access, the platform consolidates, analyses, and visualises financial data from multiple sources across UHNWIs’ complex portfolios. Thanks to the platform’s messaging capabilities, security-conscious UHNWIs can interact with advisors to make and communicate investment decisions with confidence that their data will not fall into the wrong hands, even if a device does.
Takeaway
Today’s geopolitics are more dynamic than we might wish, but international travel will always be a business necessity and lifestyle priority for many UHNWIs. Every journey comes with risks, but proper planning can minimise these risks. White-glove concierge service providers are available to handle many of the logistical and insurance-related aspects of this planning, but UHNWis will always be responsible for taking proper cybersecurity precautions before and during their trips.
For more details on how UHNWIs can use the Altoo Wealth Platform to cross financial cybersecurity off their lists of travel concerns, please get in touch with us!
