Bright spots in longevity, wealth transfer and legacy planning
Digital innovation will help the industry devise integrated protection and wealth solutions that anticipate and address the evolving needs of customers
Roundtable panellists:
- Pearlyn Phau, group chief executive officer, Singlife
- Christopher Albrecht, chief executive officer, Sun Life Singapore
- Harpreet Bindra, chief executive officer, HSBC Life Singapore
Moderator: Genevieve Cua Wealth editor, The Business Times
What megatrends do you see over the medium to long term that could present significant or pivotal opportunities for you as an insurance financial institution?
Pearlyn Phau: Three megatrends stand out for us: Singapore’s rapidly ageing population; the accelerating pace of technological change; and the imperative of building a sustainable future.
Longevity is reshaping Singapore’s future. By 2026, we will become a super-aged society. As people live longer, the role of insurance is expanding beyond financial protection to offering more holistic support.
Singlife Care Collab, for example, is a one-stop hub that gives customers and caregivers convenient access to services they may need like eldercare, nursing and other essential services, as well as discounts and resources through strategic collaborations with providers and social service agencies such as Dementia Singapore and Diabetes Singapore. This approach gives families not just financial security, but also practical, day-to-day support.
Next, the pace of technological change – particularly with artificial intelligence (AI) and generative AI (GenAI) – is transforming the industry. These tools enable us to underwrite more effectively, detect fraud in claims and personalise financial solutions. They also empower our financial adviser representatives (FARs) with deeper insights, helping them serve customers with increasingly complex needs, especially in retirement and wealth planning.
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Sustainability is equally pivotal. The global energy transition, evolving regulations and shifting investor expectations create both risks and opportunities for insurers.
At Singlife, we are committed to building sustainable value for all stakeholders by embedding sustainability into every part of our business – from setting 2050 net-zero targets and optimising our equity portfolio towards low-carbon strategies, to launching the Singlife Sustainable Future Index 2024, which tracks Singapore consumers’ progress across environmental resilience, financial inclusion and societal well-being.
While the future may look very different, we will continue to innovate and stay ahead to help Singaporeans remain financially prepared, healthier and more confident in navigating longer lives.
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Christopher Albrecht: The defining megatrend for Asia is the intergenerational transfer of wealth. According to McKinsey analysis, between 2023 and 2030, high-net-worth (HNW) and ultra-HNW families in the Asia-Pacific are set to experience an intergenerational wealth transfer estimated at US$5.8 trillion.
Over the next decade, trillions of dollars will move from first-generation wealth creators to their heirs. This is more than a financial transaction – it is a social and economic shift that will shape businesses, families and philanthropy across the region.
For insurers, it represents both a challenge and an opportunity. Families will need liquidity at the precise moment when they are least prepared, and they will expect structures that preserve businesses, sustain harmony and meet obligations across borders.
A second megatrend is longevity. Advances in medicine and healthcare mean that people are living 20 to 30 years beyond traditional retirement ages. This is a success story for modern medicine, but it also creates new financial realities.
Longevity stretches the need for healthcare insurance, retirement funds and lifestyle sustainability. On top of planning for their own retirement, people also need to plan for supporting ageing parents while simultaneously providing for the next generation.
For insurers, this opens up opportunities to design solutions that address the “three-generation squeeze” many wealthy families will face. Longer lifespans also mean more complex estate planning, as wealth must sustain multiple layers of heirs over decades. Solutions that combine lifelong protection with flexibility across generations will become indispensable.
Climate and sustainability pressures form another powerful trend. On the investment side, wealthy families are increasingly directing capital into sustainable opportunities – renewable energy, green infrastructure and companies with strong ESG (environmental, social and governance) credentials. At the same time, climate change also presents risks that need to be managed and protected against.
More frequent extreme weather events, rising sea levels and supply chain disruptions threaten physical assets and business operations. For globally mobile families with residences and enterprises in multiple jurisdictions, these risks are multiplied. Insurance that addresses climate-related vulnerabilities – from property protection to business continuity cover – will be essential in ensuring wealth is preserved and legacies remain intact.
Harpreet Bindra: Firstly, Asia is in the midst of an unprecedented intergenerational wealth transfer.
Singapore’s position as a trusted wealth and financial hub makes it key to facilitating this wealth transfer, providing a pivotal opportunity for insurance to move beyond protection and become a core pillar of wealth continuity that can enable families to safeguard legacies, diversify against volatility, and grow their wealth.
Secondly, one in four Singaporeans will be aged 65 or older by 2030. The question is not about living longer, but about living well. We see opportunities in designing products that offer flexible wealth decumulation and accumulation strategies to support our customers’ retirement and legacy plans.
Thirdly, digital innovation, including AI, is reshaping our industry and will continue to play a role in simplifying the insurance process for both insurers and customers. At HSBC Life, data already drives many processes and decision making, from underwriting and in-force management to claims payment.
We will continue to leverage technology to offer integrated protection and wealth solutions that anticipate and address the evolving needs of our customers.
How are you harnessing digital innovations to prepare for and meet known and emerging risks?
Phau: At Singlife, we are leveraging data analytics and AI to enhance underwriting, improve risk modelling and deliver more personalised protection for our customers. Our predictive underwriting model helps us accurately identify low-risk-standard lives, significantly improving straight-through processing rates and operational efficiency. This allows us to offer faster, more accurate coverage decisions while maintaining robust risk controls.
We also use customer segmentation and customer lifetime value (CLTV) metrics to identify individuals with insurance gaps and tailor our outreach, ensuring that protection and financial planning efforts are directed to those who benefit most.
On the healthcare front, our medical claims assessment tool applies advanced analytics to detect fraud, waste and abuse. This not only safeguards affordability for our customers, but also helps ensure claims are medically appropriate and cost-effective. In parallel, we actively manage our partner network to maintain sustainable pricing and service quality.
Recognising the opportunities and risks of AI, we have established a cross-functional AI steering committee that spans business, technology, risk, compliance and human resources (HR). This body oversees model approvals, risk controls and ensures human oversight in decision-making.
Importantly, HR is embedding AI literacy across the organisation, equipping our teams to embrace responsible innovation and navigate the future of insurance with confidence.
Albrecht: Digital transformation is changing how insurers anticipate risk, deliver solutions and support clients. For example, predictive analytics allow us to better understand longevity. By combining health, demographic and behavioural data, we can model life expectancy with greater precision and design solutions that sustain quality of life across longer lifespans.
This ensures families can fund not just retirement, but also multiple decades of healthcare, lifestyle and legacy planning.
Climate risk is another area where digital tools are indispensable. Advanced modelling technologies allow us to simulate extreme weather scenarios and stress-test portfolios against physical and transitional risks.
For wealthy families with residences, enterprises, as well as investments spread across multiple jurisdictions and geographies, these insights are critical. They help to inform underwriting as well as how families think about location decisions, asset allocation and resilience.
“Digital innovations are at the forefront of how we protect and empower our customers in an increasingly interconnected and fast-paced world. Today’s risks are more complex than ever, and as insurers, our role is to anticipate these shifts and respond with solutions that can help our customers thrive.”
Harpreet Bindra, chief executive officer, HSBC Life Singapore
Cybersecurity also remains one of the most immediate emerging risks. Families increasingly operate digitally across investments, communications and even smart homes. Digital platforms now enable continuous monitoring of vulnerabilities, and inform how insurance solutions are tailored to cover exposures that were not part of traditional risk models.
Finally, digital innovation is revolutionising the client experience. HNW clients expect seamless, digital-first engagement that matches the sophistication of private banking. From onboarding to policy servicing to claims, digital tools reduce friction and improve transparency. A claim that once took weeks can now be processed in days; a policy adjustment that once required multiple signatures can be completed securely online.
At the same time, it is essential to make sure that these technological advancements are supported by human empathy. Algorithms and platforms provide foresight and efficiency, but trusted advisers interpret these insights and ensure they align with family values and long-term goals. Used together, technology and human judgment create a client experience that is both sophisticated and compassionate.
Bindra: Digital innovations are at the forefront of how we protect and empower our customers in an increasingly interconnected and fast-paced world. Today’s risks are more complex than ever, and as insurers, our role is to anticipate these shifts and respond with solutions that can help our customers thrive.
At HSBC Group, we leverage AI and data analytics to drive operational efficiencies while delivering exceptional customer experiences. At HSBC Singapore, we actively align with the Monetary Authority of Singapore’s innovation agenda through collaborative initiatives such as Project MindForge, which underscores our commitment to the responsible application of GenAI in finance.
For HSBC Life, we are using data to better identify and anticipate customers’ needs. We continually enhance our product offerings to address emerging risks, including mortality, morbidity and longevity.
As at August this year, we have launched three enhanced life insurance solutions tailored for affluent and HNW individuals, supporting their needs in legacy and retirement planning, wealth accumulation, capital preservation, and multi-generational wealth continuity, providing stability amid market volatility and meeting the growing need for health protection as lifespans increase.
Our digital transformation journey remains ongoing. As part of a global banking group, we explore new opportunities to innovate, anticipate client needs and deliver agile solutions that integrate our insurance propositions with core banking journeys. These efforts aim to empower our customers to achieve their goals through our uniquely differentiated health and wealth strategy.
Almost every financial institution has ambitions to capture the HNW market. What gaps or unmet needs do you see in this segment, and what would it take to make an impact?
Phau: Singapore’s HNW population is growing, yet the Singlife Financial Freedom Index 2024 found that only 16 per cent of affluent consumers surveyed own a legacy plan, highlighting a clear gap in wealth transfer and end-of-life planning.
Within this segment, needs vary widely, from ultra-HNW families with sophisticated wealth management requirements, to affluent professionals who are just beginning to think about legacy solutions.
Indexed universal life (IUL) solutions are well placed to bridge this spectrum of needs, offering growth potential, downside protection and life coverage. Demand in Singapore has grown rapidly, and many insurers now offer IULs.
Singlife introduced its first IUL plan last year under Singlife Pinnacle. With coverage starting at US$250,000, compared to typical entry points of US$500,000, it opens the door to a broader group of affluent customers who may not have previously considered IULs.
Meeting the needs of this segment requires more than products alone. Affluent clients increasingly expect holistic guidance that brings together investment, protection and succession planning. By providing clear, personalised strategies, insurers can help clients navigate complexity and plan confidently for their legacy.
Albrecht: The HNW segment is crowded, but the gaps are clear. Firstly, the Asia-Pacific’s ultra-HNW families or family offices currently have limited engagement with insurers, according to McKinsey analysis.
They may not understand the potential that insurance solutions can offer beyond the traditional lifetime protection. Single-family offices are often led by former bankers, who are more comfortable advising on investment strategies than working with insurers on holistic wealth transfer and succession planning.
“Affluent clients increasingly expect holistic guidance that brings together investment, protection and succession planning. By providing clear, personalised strategies, insurers can help clients navigate complexity and plan confidently for their legacy.”
Pearlyn Phau, group chief executive officer of Singlife
Popular HNW insurance such as IUL is filling this gap as it offers a good balance of insurance coverage and potential investment growth for wealthy families. At Sun Life Singapore, we have recently enhanced our protection-based IUL, and we have also launched a new savings-based IUL to meet these rising needs.
Secondly, there may be a tendency to treat wealthy families as a monolith. In reality, their needs are highly diverse – entrepreneurs with illiquid holdings, next-generation heirs with global lifestyles, or family offices managing multi-jurisdictional structures.
A one-size-fits-all product set will not resonate. Bespoke insurance solutions are needed so that they can be structured to meet diverse family needs across multiple generations and jurisdictions.
Liquidity planning remains underserved. Many families underestimate how fragile their continuity becomes when a matriarch or patriarch passes. Equal wills (where assets are to be divided equally among heirs) without liquidity often paralyse businesses. Institutions that can provide tailored liquidity solutions that are fast, flexible and cross-border will deliver real value.
Lastly, service matters. Wealthy families expect discretion, empathy and high-touch engagement, especially at moments of crisis. Product innovation is important, but what truly differentiates is the ability to deliver quickly, seamlessly and compassionately when families are under strain.
To make an impact, providers need to combine deep technical expertise in structuring solutions with cultural sensitivity and a commitment to service excellence. Families don’t just buy policies; they buy peace of mind.
Bindra: Firstly, HNW individuals are becoming increasingly global, often residing in one country while their business or assets are in another. They value partnerships with institutions that offer a global footprint, and the ability to seamlessly manage their wealth and insurance needs across borders.
Secondly, the younger generation of HNW individuals are reshaping the concept of family legacy and succession. Families are increasingly seeking flexible solutions, whether it’s empowering the next generation to take over the family business, or supporting them in pursuing their individual aspirations.
Insurers can meet these evolving needs by incorporating flexibility into their product offerings, such as options to pay death benefits in instalments, allowing smaller sums to be dispensed to support the next generation’s ambitions, or tailoring solutions to align with diverse and dynamic family structures.
Additionally, many HNW individuals seek to ensure their wealth carries meaning, impact and values. This has led to a growing demand for insurance solutions that integrate philanthropic or sustainability initiatives into product design, aligning with their desire to leave a purposeful legacy.
Lastly, HNW individuals in Singapore are living longer, but also facing rising healthcare costs. Beyond protection, they want solutions that enhance quality of life such as concierge care. Integrating wellness into insurance solutions is how we move from insurance as a “safety net” to a “life enabler”.
We recently launched our first Health and Wellness Centre within HSBC’s newest Wealth Centre to ensure our customers can enjoy a distinctive proposition that brings together wealth advisory, protection and healthcare under one roof.
At HSBC Life Singapore, we leverage the capabilities of HSBC’s global banking network to provide integrated wealth and insurance solutions. These offerings help clients manage their assets, protect their wealth, and plan their legacy across multiple markets – delivering the flexibility, global reach and personalised support needed to meet the evolving needs of HNW individuals.
How can AI tools help you to tailor your offerings to the wealthy and affluent market, whether in risk protection or investment portfolios?
Phau: At Singlife, we are actively deploying AI to enhance how we serve the affluent and HNW segments.
Internally, we have rolled out Singlife Buddy, a GenAI-powered knowledge base chatbot that equips our FARs with instant answers on product specifications and processes. This improves productivity and allows FARs to deliver faster, more accurate service for clients with complex needs.
We also use AI to infer key persona attributes – such as income, marital status and product affinity – when explicit data is unavailable. Combined with our segmentation and CLTV models, these insights enable more precise targeting and differentiated customer journeys.
Propensity modelling further helps FARs identify and prioritise high-quality leads, ensuring time is spent with clients who stand to benefit most from tailored advice. These data-driven tools underpin Singlife Pinnacle, our dedicated sub-brand for affluent customers, where AI supports personalised onboarding, communications and product recommendations.
On the investment side, AI drives our internal fund selection methodology, which continually monitors the performance of investment-linked-plan funds to ensure we deliver solutions that meet the evolving needs of affluent clients.
We see AI as a powerful enabler to reimagine how wealth solutions are designed and delivered. The affluent and HNW market expects more than products; individuals want insight, personalisation and efficiency.
Yet, AI must work hand in hand with the human touch. For affluent clients making complex, deeply personal decisions about wealth and legacy, trusted financial advisers remain irreplaceable.
“Wealthy families value trusted advisers who understand their context, values and long-term vision. AI provides sharper tools – but people provide the judgment and compassion that ultimately build trust.”
Christopher Albrecht, chief executive officer of Sun Life Singapore
Through GROW with Singlife, our integrated investment platform, we’re focusing on areas such as portfolio optimisation at scale, where AI helps advisers systematically identify risks and rebalance allocations; adviser and client engagement, with timely triggers that turn conversations from reactive to proactive; and product selection, using scenario modelling to stress-test portfolios and identify forward-looking opportunities.
Ultimately, AI enables us to deliver solutions that are timely, intelligent and actionable, while the human touch ensures they are delivered with care, trust and understanding. After all, human care is what truly anchors every experience.
Albrecht: AI has the potential to transform how insurers understand and serve wealthy clients. At the front end, AI-driven insights can help advisers anticipate client needs by analysing patterns across health, lifestyle and financial data, but always with privacy safeguards in place, of course. This allows for solutions that are not only personalised, but also timely.
In underwriting, AI can streamline complex assessments, reducing friction in policy issuance while maintaining rigour. For claims, AI-enabled systems can triage and process straightforward cases quickly, freeing human teams to focus on sensitive, complex claims where empathy matters most.
On the investment side, AI tools can support scenario modelling and portfolio construction, helping families balance growth and protection in a more dynamic way. But the most important point is that AI should augment, not replace, the human relationship.
Wealthy families value trusted advisers who understand their context, values and long-term vision. AI provides sharper tools – but people provide the judgment and compassion that ultimately build trust.
At Sun Life, we combine AI tools with human judgment to provide personalised solutions and better service for both our business partners and clients.
Bindra: AI presents an enormous opportunity for us, as it enables us to better understand and serve the unique needs of the wealthy and affluent market, whether in risk protection or investment portfolios. By leveraging AI, we can deliver personalised customer experiences, optimise wealth solutions, and ensure timely, data-driven advice.
At HSBC Group, we’re accelerating the deployment of AI to drive efficiency in our operations. Today, we have more than 600 AI use cases across the group and routinely use the technology in areas including customer service and risk assessment.
AI also plays a pivotal role in providing data-driven customer insights, enabling us to identify and anticipate the specific needs of HNW individuals and affluent clients. This helps us deliver solutions and ensure that every interaction is suited to meet their goals and preferences.
Additionally, we leverage AI to enhance distributor support and engagement, equipping our advisers with actionable insights to better guide clients in making informed decisions. As we continue to innovate, we are excited about the potential of AI to strengthen relationships and deliver tailored solutions that address the evolving needs of the wealthy and affluent market.
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