The family office problem nobody is talking about
Family offices are supposed to be different. Exclusive. Sophisticated. Access to deals that retail investors can only dream about.
Yet here's what JP Morgan Private Bank's 2026 Global Family Office Report revealed:
→ 65% are piling into the AI trade (hello, concentration risk)
→ 64% of U.S. family offices cite interest rates as their top risk, with 61% citing inflation
→ 72% have ditched gold exposure entirely
→ 34% of their assets are locked up in illiquid private investments
Sound familiar? Because it should. The wealthiest investors in the world are facing the exact same headwinds as everyone else—and making the same moves.
The uncomfortable truth
Even with access to hedge funds, private equity, and exclusive deals, family offices are sitting on piles of cash, waiting for opportunities that may never materialize.
David Frame, Global CEO of JP Morgan Private Bank, put it bluntly: "People are fully of the belief that AI should be a central part of their portfolio. However, it's balanced against the concern that AI is also a concentrated part of their portfolio."
Translation? They know they have a problem. They just don't have a solution. This is your opening.
Why insurance-based solutions may belong affluent portfolios
If family offices managing billions are stumbling, your high-net-worth clients are likely feeling the same pressure. And most advisors working with affluent clients aren't bringing them real alternatives—they're offering the same public market exposure everyone else has.
Here's why insurance-based solutions deserve a seat at the table for your wealthy clients:
1. Better returns than cash—without the wait
Many clients are sitting in cash equivalents earning next to nothing, waiting for "the right opportunity." Insurance products offer actual returns while they wait.
2. Liquidity isn't always the goal
If 34% of family office money is locked up in private investments, clearly liquidity isn't the only concern. What matters is protection and performance. Insurance delivers both.
3. Downside protection in a volatile world
With market concentration risk, geopolitical uncertainty, and Fed policy shifts, your clients likely need ballast. Insurance products can offer growth potential with contractual protection—something alts can't promise.
4. Tax efficiency for people who actually need it
Wealthy clients tend to have tax problems. If they don't, they probably aren't making gains in their current holdings anyway. Insurance creates tax-advantaged growth and distribution strategies.
5. Diversification without Mag 7 exposure
Your clients can still potentially benefit from S&P 500 performance without carrying the concentration risk of the handful of tech giants driving the index. That's not available in most portfolios.
6. Insurance companies aren't usually as sensitive to geopolitical shocks
While markets swing on headlines, insurance carriers operate with regulatory capital requirements and conservative balance sheets. Stability matters when confidence is low.
The differentiation play
Every advisor has access to public markets. Most can usually get their clients into hedge funds or PE if the minimums work. But how many advisors are bringing insurance-based alternatives into sophisticated wealth planning conversations?
Almost none.
That's your edge.
Family offices managing billions are recognizing the same risks you're seeing with your clients. The difference? You have tools they don't even know exist—and you can deliver them with far less friction.
The reality today:
→ Market volatility is high
→ Confidence is low
→ Concentration risk is extreme
→ Inflation concerns persist
→ Traditional alts aren't performing
Many clients crave something different
Not another equity allocation. Not another illiquid hold. They're looking for a strategy that protects against disaster while still participating in growth.
That's what insurance-based solutions can do. And that's what separates a good advisor from an indispensable one.
The bottom line?
If the families managing the most wealth on the planet are struggling with the same problems as everyone else, there's a massive gap in the market. Your high-net-worth clients are looking for advisors who can think beyond the obvious.
Insurance isn't a commodity. When positioned correctly, it's a differentiator—and a portfolio stabilizer that actually works when your clients need it most.
Are you bringing it to the table?
SOURCES:
JP Morgan Private Bank. (2026). 2026 Global Family Office Report. Survey conducted among 333 single-family offices with average net worth of $1.6 billion. Retrieved from https://www.cnbc.com/2026/02/02/family-offices-inflation-real-estate-alternative-investments.html
Additional data from JP Morgan Private Bank's 2024 Global Family Office Report, based on survey of 190 family offices conducted October-December 2023. Retrieved from https://privatebank.jpmorgan.com/apac/en/insights/reports/2026-family-office-report
