A significant number of high-net-worth individuals (HNWIs) in Greater China are increasingly incorporating insurance into their wealth management strategies, according to a new study by Manulife Hong Kong and Deloitte. The survey, which focused on individuals with net assets of at least HK$7.8 million, reveals that around 70% of HNWIs in the region now include insurance products as part of their asset portfolios.
The research shows that 30% of respondents allocate more than 11% of their assets to insurance, highlighting its growing role in comprehensive financial planning. Among the findings, more than half (57%) of participants indicated that they view insurance as a key tool to ensure a smoother wealth transfer to future generations.
Life insurance emerged as the most popular form of coverage, with 78% of respondents holding a life insurance policy. Medical and savings insurance followed closely, with 76% and 60% ownership, respectively.
When asked about their primary goals for wealth inheritance, 64% of respondents highlighted the importance of controlling the distribution of their assets to prevent potential disputes. Nearly 70% (67%) of all respondents agreed that designating beneficiaries through insurance policies could help minimize conflicts in the distribution of their wealth.
Albert Mak, Chief Agency Officer of Manulife Hong Kong and Macau, commented, “In today’s dynamic financial landscape, HNWIs are increasingly relying on insurance not only as a risk management tool but also as a strategic method to ensure financial stability and preserve their legacies.”
Anthony Lau, Private Hong Kong Leader at Deloitte, noted the shift in how insurance is perceived. He explained that insurance has evolved from a traditional risk management product to a vital component of legacy planning. “Insurance now shares key features with wills, family trusts, and powers of attorney, making it an accessible and effective legacy planning tool,” he said.
In some jurisdictions, tax incentives, such as tax exemptions, deferrals, and deductions for insurance products, further encourage their use as part of legacy planning, Lau added.
Lau also observed a shift in attitude, with many families beginning their legacy planning at a younger age. “There is a growing awareness of the benefits of ensuring a smooth transfer of wealth and maintaining harmonious family relationships,” he said.
This trend reflects a broader recognition among HNWIs of the importance of planning for the future, with insurance playing an increasingly central role in securing financial legacies across generations.
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