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For very high-net worth individuals, does it make sense to not have insurance?
It depends.  "High net worth individuals" is very subjective.   Lets say a person is worth 1.5 million.  High, but not super high.  For one, they should have an umbrella policy.  Until your net worth is above 300K, you really don't need an umbrella policy.  They should insure their home and cars, but should probably have high deductibles.  Health insurance is a must as a bad illness can wipe them out.  They should have long term care insurance when they reach age 60.   Now lets say a person is worth about 10 million.  They might be able to self insure basic transportation and probably don't need long term care insurance.  However, they may choose to carry the full coverage car insurance, or other lines, because it is a value.   In conclusion insurance needs change based on a person's net worth and income.  It is very hard to make a blanket statement without details of the makeup of one's net worth and how they earn their income. Having said all of that, a high net worth (HNW) individual may never be able to drop certain coverage.  Lets say that a HNW owns a 50K condo, 1K square foot condo.  Given that the outside structure is covered by the HOA the insurance on such a unit only covers the contents and liability.  The contents could easily be floated by the HNW individual, but not the liability.  It is probably a requirement, on their umbrella policy, that they carry the maximum liability protection on their vehicles and properties.  In the case above they would carry a policy for the purposes of liability protection. This could also be true of their dependents.  Say for example, their adult child receives some financial assistance from their parents (like college being paid for).  The HNW individuals should have their child cover the maximum liability on the auto policy. According to this site:  A person with a net worth of 1.5 million would be in the 90-95 percentile, a person with 10 million in the 99th. This article does a decent job of describing what constitutes a HNW person or household.  Namely 1 million in investable assets, which is of course a bit different then net worth.