The demand for insurance for estate planning in Asia, notably around the Greater Bay Area, is becoming evident as more affluent individuals turn to insurance policies as a primary tool for wealth transfer. Approximately 60% of high-net-worth individuals (HNWIs) in this region now prefer using insurance mechanisms to facilitate wealth transfer to future generations, thereby helping to mitigate potential family disputes. Manulife, a leading Canadian insurer and a dominant Hong Kong pension market player, has reported a surge in interest in insurance products designed explicitly for legacy and succession planning.
Patrick Graham, Manulife’s CEO for Hong Kong and Macau, attributes this shift primarily to the growing desire among HNWIs to prevent inheritance conflicts. Over half of the survey respondents echo this sentiment, seeking stability and structured growth in wealth transfers. The trend is supported by survey data from July to December 2024, gathered by Manulife and Deloitte, involving 140 HNWIs from mainland China, Hong Kong, Macau, and Taiwan, who possess assets valued at a minimum of HK$7.8 million (US$1 million).
The survey underscores the strategic role of insurance in modern estate planning, proving essential for high-net-worth individuals aiming for seamless generational wealth transitions.
Insurance aids in legacy planning
The report reveals that 70% of respondents have integrated insurance into their asset portfolios, with 30% allocating 11% or more of their assets to insurance products.
Life insurance emerges as the leading form of coverage, with close to 78% of responding HNWIs owning a life insurance policy, followed by medical insurance (76%) and savings insurance (60%). Notably, 57% of respondents express a desire to leverage insurance to facilitate a smoother transfer of wealth to future generations. Among all respondents, 67% acknowledge that designating beneficiaries through insurance can help mitigate conflicts in the eventual distribution of their wealth.
The report also highlights concerns related to legacy succession, with 52% fearing that wealth distribution may trigger family conflicts, 43% concerned about heirs’ ability to manage wealth, and 43% worrying about the potential loss or depreciation of wealth during the succession process. Manulife has established a holistic approach to meet the financial planning needs of HNWIs, with a dedicated Private Client Wealth Planning team focused on helping high-net-worth clients preserve, accumulate, and transfer their wealth to future generations while managing unforeseen risks. The insurer also offers a network of premier professional service providers for specialized expertise and guidance.
The combination of legacy planning expertise, leading specialist advice, and innovative features is essential to delivering bespoke and holistic solutions that effectively address the individual needs of HNWIs, empowering them to navigate complex planning challenges with confidence.
Image Credits: Photo by Vlad Deep on Unsplash
