Insurers adapt to serve Hong Kong, Singapore family offices

UHNW and HNW families are expected to reach $5.8t in wealth by 2030.

The surge in family offices across Hong Kong and Singapore is opening up new avenues for insurers. As ultra-high-net-worth (UHNW) and high-net-worth (HNW) families are expected to transfer approximately $5.8t in wealth by 2030, insurers are positioning themselves to offer tailored solutions for estate planning and wealth transfer, McKinsey’s “Asia’s family office boom: Opportunity knocks” insight said.

This trend represents a shift in the traditional role of insurers, who are now setting up specialised teams to cater to family offices. 

These offices, which manage assets for wealthy families, are in increasing need of customised insurance products that go beyond simple coverage. This includes multigenerational wealth transfer policies, estate planning services, and tax optimisation through insurance mechanisms. 

Many family offices, particularly in Asia, remain under-informed about the potential of insurance products to address these specific needs. According to industry experts, there is growing demand for more bespoke insurance offerings that can handle the complexities of multijurisdictional families, with some insurers already structuring master policies that cover multiple generations and jurisdictions. 

This is a far cry from off-the-shelf products and involves significant underwriting expertise and premium customisation. Insurers are also stepping in by collaborating with legal and tax advisors, creating an integrated approach to estate planning.

Furthermore, insurance firms see the potential for expansion beyond life insurance. There is a growing interest in policies that provide liquidity during estate transfers and protection for assets during generational shifts.