Asia’s wealth insurers face rising compliance pressure

Stricter anti-money laundering and disclosure rules are slowing onboarding.

Insurers serving Asia’s ultra-rich families face growing operational and regulatory pressure as cross-border wealth transfers attract tighter scrutiny.

Stricter anti-money laundering rules and requirements for disclosing beneficial ownership are extending onboarding timelines and complicating the issuance of high-premium policies, analysts said.

Families with assets and businesses across Singapore, Hong Kong, and Malaysia are choosing structures that allow “capital mobility and diversification across asset classes,” Katherine Ho, managing director for Southeast Asia at Lioner International Consultancy Pte. Ltd., said in an emailed reply to questions.

In July 2025, the Monetary Authority of Singapore fined nine financial institutions $21.6m (S$27.5m) over breaches tied to a $2.4b (S$3b) money-laundering scandal.

Hong Kong’s Insurance Authority recently reprimanded three brokerages and imposed fines totalling $55,000 (HK$429,000) for failing to properly verify clients and monitor politically exposed people.

For insurers issuing large-value policies, these regulations require extensive documentation and additional compliance checks, increasing administrative costs and slowing policy execution.

Demand for specialised insurance structures remains strong. Private placement life insurance policies, used to manage offshore holdings and plan intergenerational wealth transfers, have grown in popularity.

These contracts typically carry large premiums and are tailored to families with complex cross-border estates.

Traditional products also continue to attract clients. Indexed universal life (IUL) policies and savings plans are increasingly used to diversify assets, accumulate cash value, and facilitate legacy planning.

Over the past year, Lioner has seen a growth in PPLI sales compared to year 2024, due to rising client demand.

Within Lioner’s portfolio, growth continues to be led by IULs and Savings plan, the firm said. IULs grew by 35% from 2024 to 2025. Savings plan contributed to 221% overall growth in 2025, offering UNHW families asset diversification,  cash value accumulation, liquidity options, and multigenerational wealth transfer.  

"We have seen a significant uptake of savings plan with average premium size of $5m per case," Ho added.

Martin Wong, regional CEO at Grandtag Financial Consultancy (Singapore) Pte. Ltd., said the IUL market in Asia has “definitely doubled” as clients and advisers gain experience with the product.

Volatility-controlled indexes have improved the premium-to-sum-assured ratio, making these policies more appealing.

Succession planning remains a weak point for many families. A Schroders Wealth Management survey found that whilst 70% of families discuss wealth transfer, only 23% to 30% have formalised plans.

The gap is caused by family dynamics, administrative burdens, and the complexity of cross-border holdings, particularly when children study or settle abroad.

"Looking back at the solutions we offer, it’s all about ensuring that the liquidity gap or pain encountered down the road can be addressed by the jumbo plans we provide to meet these clients’ needs from an inheritance tax perspective," Wong said.

Advisers report that legacy planning discussions are becoming more structured. Families are formalising estate arrangements and carefully reviewing compliance obligations in multiple jurisdictions.

The combination of higher regulatory scrutiny, cross-border reporting requirements, and growing demand for large-premium insurance products has increased operational pressure on insurers.

"They spend years building their businesses, and while a good portion of the wealth remains within the family, there can only be one CEO or one person who effectively inherits the business. Others may receive a smaller share. Clients often ask how to ensure a sense of balance among what everyone gets," Wong said.

Noncompliance can result in significant fines and reputational damage, whilst managing complex policies demands additional administrative resources.