Manulife: Chinese HNWIs Use Insurance for Wealth Transfer
Asia is undergoing a historic transfer of wealth to the next generation. Within Greater China, most high net worth individuals use insurance to facilitate this process, according to a study by Manulife and Deloitte.
More than half (57 percent) of high net worth individuals (HNWI) in Greater China said they leverage insurance to «facilitate a smoother transfer of wealth to future generations», according to a study by Manulife and Deloitte.
In terms of the most important outcome they hoped to achieve, 64 percent prioritized «the distribution of their assets in their desired manner to prevent inheritance disputes». 67 percent acknowledged that designating beneficiaries through insurance can help mitigate such conflicts.
«Insurance has evolved from a risk management product to a legacy planning tool highly preferred by our HNWI clients,» said Anthony Lau, Deloitte Private Hong Kong leader. «It mimics some key features of will, family trust, and limited power of attorney, making insurance one of the most accessible legacy planning components.»
Leading Coverage
By the types of coverage, life insurance was the leader with close to 78 percent of respondents owning a life insurance policy. This was followed by medical insurance (76 percent) and savings insurance (60 percent). 70 percent also said they have integrated insurance into their asset portfolios with 30 percent allocating 11 percent or more of their assets.
«In today’s evolving financial environment, HNWIs are turning to insurance as a key strategic means of achieving financial stability, effectively managing risks, and preserving their legacies,» said Albert Mak, chief agency officer of Manulife Hong Kong and Macau.
The report was developed based on proprietary research and interviews with relevant stakeholders including HNWIs with net assets of at least HK$7.8 million ($1 million) in the Greater China region.
