AIA and EY reports 90% of HNWIs in Singapore leverage on insurance for their wealth and legacy planning

| 25 Jun 2020

A new report by AIA and EY sheds light on how High-Net-Worth Individuals (HNWIs) view and adopt insurance solutions into their overall wealth management.

HNW Singaporeans were not the only ones surveyed. The data from this report was collected and developed based on proprietary research, interviews with relevant stakeholders across four different markets- Mainland China, Hong Kong, Taiwan and Singapore.

Findings on HNWI in Singapore:

70% of HNWI in Singapore said that insurance makes up more than 10% of their wealth and legacy planning, and 75% of HNWIs across the four markets use insurance for succession and legacy planning.

The findings show 86% of HNWI in Singapore own medical or critical illness insurance plans, driven by a demand for coverage of medical costs as well as access to first-class healthcare support.

High on the list is retirement planning, with 96% of HNWI in Singapore agreeing that it is an important part of overall wealth management and essential to ensure a smooth and successful transition from working to retirement, compared to 92% in the other markets.

Regarding business wealth protection, 84% of HNW entrepreneurs in Singapore have heard about it, with 52% of them not having any form of protection in place. While only 48% of them have business protection via a range of insurance products such as business loan protection, health and illness income protection, business transfer and legacy planning and inheritance equalization.

According to Ms. Ho Lee Yen, Chief Customer and Marketing Officer of AIA Singapore HNWIs in Singapore are looking beyond basic life insurance coverage and towards more holistic solutions that includes healthcare support, estate planning, tax optimisation, business succession, and debt risk mitigation.

She added that, “Early planning and holistic wealth management are critical in helping safeguard legacies, especially during times of economic uncertainty, and smart insurance solutions can provide a source of passive income streams as well as the asset diversification required to buffer against market volatility.”

In the case of liquidity planning, HNWIs solve immediate liquidity needs through cash value withdrawal of their life and health insurance plan(s). HNWIs also use insurance to protect their families from issues arising from illiquid estates or outstanding debt. And through employing the appropriate life insurance plans, HNWIs can save taxes in estate and legacy planning.

Mr. Dustin Ball, Partner and APAC Insurance Strategy Leader at EY said, “The findings show that HNW individuals are a diverse segment and face specific challenges based on the source of their wealth.” He also added that, “There is an opportunity to increase the understanding and awareness of how insurance products can augment wealth planning.”


Asia Advisers Network is organising a virtual summit "Insurance Inspired: Winning in the New Normal" that is happening on 28-30 July 2020 as the first batch of speakers has been announced. Co-Organised by Jensen Siaw International and sponsor GoalsMapper, the summit will feature prominent international speakers across three days. There are over 500 sign ups within a week, so hurry and reserve your virtual spots today!

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