Life in the fast lane

Society is changing. And this societal change in the UK is leading to a big shift in the way insurance companies and brokers look at mid and high-net-worth clients. For a start, there are more of them.

The number of millionaires in the UK rose 80% in the last five years. The number of property millionaires in England and Wales has increased by a third in the last year and a recent Datamonitor study showed that between 2005 and 2010 the total value of liquid assets held by HNW individuals in the UK will grow by nearly 10% a year.

Being cash rich provides HNW clients with new avenues to spend their hard-earned money.

As an insurer of HNW individuals, Zurich private clients has seen a change in the number of people investing their money in ultra top-of-the-range super cars that may outlast many other investment opportunities. Traditional high value purchases like art and sculpture are being joined by iconic cars.

To better understand this area insurers need to get a better feel for what vehicles stand out now and which ones people will be queuing up to get hold of in the future. By understanding how the supercar market works and the opportunities for investment that are available, the insurance market can then actively adapt and offer appropriate cover and the quality claims service these customers expect and deserve.

The research, conducted by an independent panel of motoring experts and writers, found that the Enzo Ferrari is the best contemporary car that money can buy (see table). Ferraris look a pretty safe bet all round with three cars in the top 10, but there are some great cars from other brands in the list too.

Driving force

The expert panel conducted a thorough in-depth analysis of all the cars currently available on the new car market retailing at over £50,000. The cars were judged on a range of criteria, including rarity, design, power, motoring heritage, marque and price - all the things HNW clients look for when looking at investment opportunities, or merely adding to their lifestyle accessories. Taking the top spot in The Iconic Car Index, developed for ZPC, the Enzo won pride of place based upon performance, exclusivity, brand heritage and style status.

To own a car at the top of the Iconic Car Index, it helps to be seriously wealthy. The most expensive car, the Bugatti Veyron, driven by the likes of Hollywood A-lister Tom Cruise, is priced at £840,000. The second most expensive is the Enzo at £425,000, with owners including Microsoft co-founder Paul Allen. The late Pope, John Paul II, even had one after he was given the 400th Ferrari to be manufactured by the prestigious factory. Those on a smaller budget can look instead to the Bentley Continental at £115,000, or the Ferrari F599 at £157,000.

The results from the index provides a fascinating insight into what the world's most affluent people may consider buying if they are after the ultimate drive.

There is a change in the priorities people have when it comes to their current lifestyles, as well as to providing for their futures. They recognise that these aspirational cars are an ideal investment, as well as being fantastic to car to enjoy driving.

- Nick Brabham is head of Zurich private clients.