Legacy planning for the wealthy: insurance tool offers growth and capital preservation

ASIA’S wealthy individuals and families are an increasingly fertile hunting ground for insurers keen to expand their book of business, thanks to robust growth in the region’s wealth and millionaire population, and greater awareness of the need for legacy and succession planning.

Various wealth surveys expect the pace of wealth creation to pick up after a decline in 2022. Knight Frank, for instance, predicts a 37 per cent growth in the number of ultra high net worth individuals (HNWIs) in Asia-Pacific from now to 2028, led by India and China. This occurs in tandem with a surge in wealth transfer of as much as US$5.8 trillion to younger generations – as estimated by McKinsey – between 2023 and 2030.

Insurance can help to amplify one’s assets for distribution to heirs, make a philanthropic bequest or for business succession planning, among other objectives. A recent study by Swiss Re found that brokers and insurers expected growth in insurance premiums of 10 to 20 per cent from products catering to wealthy individuals and family offices.