Family Offices to Drive Asia Wealthy Insurance Market Towards USD140bn

The Asia wealthy insurance market could generate USD100bn to USD140bn in annual new-business premiums by 2030 as family offices and private banks expand insurance-based wealth planning, according to McKinsey & Company.

Only around 15% to 20% of Asia’s wealthy individuals currently incorporate life insurance into their financial plans, leaving a substantial portion of the market underserved.

Asia-Pacific personal financial assets are forecast to reach USD120tr by 2030, while approximately USD5.8tr could pass between generations, increasing demand for liquidity, estate planning and wealth-transfer solutions.

Singapore and Hong Kong remain the region’s principal high-net-worth insurance centres.

McKinsey said specialist insurers can often automatically underwrite policies worth USD50m to USD75m or more, compared with typical limits of roughly USD2m to USD10m among retail-focused insurers.

The opportunity is expected to encourage closer collaboration among family offices, private banks, insurers and wealth-planning advisers.