FWD Singapore, IPP eye Gen Zers amidst wealth influx

Assets are being passed down through families from one generation to the next.

FWD Singapore Pte. Ltd. and IPP Financial Advisers Pte. Ltd. want to attract more Gen Z workers and consumers as they try to harness more than a trillion dollars worth of generational wealth in the next 15 years.

“We really want to build a pipeline of young talent entering the industry,” Adrian Vincent, CEO at FWD Singapore, told Insurance Asia. “With our digital capabilities and the brand reputation of IPP Financial Advisers, we hope to encourage young people to join the industry.” 

An ageing population, critical illness protection gaps and the influx of wealth from overseas would all shape both product strategy and customer engagement in the coming years, he said via Zoom.

IPP Financial Advisers CEO Christopher Teo said they also aim to attract young clients in the wealth segment. “From a financial planning perspective, clients, especially those in the younger segment, are more financially literate,” he pointed out.

Vincent expects about a trillion (~S$1.3t) of assets like money, property, and investments to be passed down through families from one generation to the next in the next 15 years, and the insurer-financial adviser tandem would want to tap that.

“FWD has supported us through enhanced financial support and training, which is critical,” Teo said in the same Zoom interview. “Their digital tools empower our advisors to deliver more effective, data-driven recommendations and a better digital experience.”

FWD acquired a minority stake in IPP in 2020 as it expands in Singapore and the region.

Vincent said both companies have worked together on product development, and FWD has benefited from insights offered by IPP, whose team of 400 financial advisers also speak with customers daily.

He also cited how insurance could help with asset transfer, including legacy planning and dividing a business fairly amongst heirs.

“Singapore is forecasted to become a super-aged society next year, defined as having more than 21% of the population aged 65 and above,” Vincent said.

There’s also a $447.02b critical illness protection gap, he said, citing a 2022 Life Insurance Association of Singapore.

Wee Tiong Howe, chairman and founder of IPP Financial Advisers, said the consumers today expect competitive premiums and globally diversified investment options. “The days of opaque bundled products are fading.”

Wee noted that today, a 30-year-old can get $770k (S$1m) in life coverage and $385,060 (S$500,000) in critical illness and total permanent disability coverage for about $768.12 (S$1,000) a year—down from as much as $6,931 (S$9,000) four decades ago.

The way insurance is bought and sold is also evolving, he said, noting that the model has shifted in favour of independent financial advisers. 

“Consumers benefit from unbundled, transparent products—meaning transparency in the cost of life insurance protection and the types of investment portfolios offered for different risk profiles,” Wee said.

Managing how your wealth is transferred to younger family members when the time comes is another focus of their partnership.

And as Singaporeans live longer, often into their 90s, financial independence during retirement has become more complex.

“[Boomers] have their wealth and have reserved their savings,” Wee said. “Now, their children are having children, but the cost of living has changed completely. The cost of housing is enormous.”

“We’re now designing products that allow grandparents to fund education and homeownership for their grandchildren. It’s long-term, cumulative planning,” he added.

Teo said legacy is no longer just about heirs. 

“We’re seeing more high-net worth clients exploring charitable gifting as part of their wealth transfer strategy,” he pointed out. “Insurance offers flexibility in that regard.”

“Selling insurance isn’t just about returns; it’s about keeping promises. And that means staying relevant through both human touch and tech enablement,” he added.