A new market study by Utmost group has revealed that there was a 6% growth in HNW international life insurance new business sales in 2024 in Asia.
A 2024 Wealth Management Market Study by insurance-based wealth solutions company, Utmost Group, revealed robust growth in the Asian HNW international life insurance market.
The study, conducted by NMG Consulting shows that HNW international life insurance new business sales in Asia grew by 6% to GBP7.8bn ($10.4bn) in 2024, up from GBP7.4bn in 2023. The region accounted for nearly a fifth (19%) of all global new business sales in the market (GBP41.3bn).
Utmost head of Asia Mr Mark Christal, commented: “In Asia, we are seeing strong demand for and increasing awareness of insurance-based wealth solutions driven by a growing and internationally mobile HNW population and the market looks set for continued growth as Asian wealth transfer accelerates.”
A fast growing and sizeable global market
The global HNW international life insurance market covers life insurers based in international financial centres serving HNW and internationally mobile affluent clients.
Products include both unit-linked and non-linked solutions designed to support HNW individuals and families in wealth structuring and preservation, inheritance tax planning, risk management and diversification. Due to the nature of these solutions, often high in complexity and value, distribution to clients is primarily via specialist financial advisers or brokers working with private banks, family offices or professional service firms.
The HNW international life market consists of a few global providers, outside of which competition remains relatively localised with companies concentrated in geography or product segments. Consequently, the top five providers account for around 45% of total market share.
Significant opportunity for further market penetration
In addition to the growth outlook of the market, NMG assessed the penetration of HNW insurance-based wealth solutions relative to the total addressable HNW market. The study concluded that one-third of HNW assets globally are held in investible assets. These investible assets, totalling GBP28trn of wealth, are typically held to address an individual’s long-term savings and investment needs. HNW insurance-based wealth solutions however, account for around 2%, or GBP543bn, of this GBP28trn investible asset market.
Insurance-based wealth solutions offer asset protection, portability and succession planning in a globally compliant tax efficient structure. By increasing awareness and understanding there is an opportunity to better serve the end customer which in turn will expand the penetration of the market. By increasing penetration to 3% (from 2%), the global HNW international life insurance market could add over GBP240bn of additional assets, growing the market by 50% and surpassing GBP800bn.