How can wealthy people close the legacy planning gap?

Older cohorts lag on plan execution despite strong awareness.

Wealthy Asians understand legacy planning, but many have not put anything in place, leaving $5.7b of wealth unstructured.

About three-quarters of high-net-worth people said they understand estate planning and intend to act, but about three-fifths have not done so, HSBC Life (International) Ltd. said in an April report.

Life insurance has overtaken wills as the most commonly used planning tool, with one in four respondents choosing it as their primary option, compared with one in five who prefer wills.

The survey covered more than 900 high-net-worth people across nine markets in Asia and the Middle East and found that 17% to 35% used life insurance as the main wealth transfer tool, with higher uptake in India, Thailand, and Indonesia.

Younger people show stronger engagement. Those aged 30 to 39 are more likely to gather information, whilst more than half of respondents aged over 60 have yet to put plans in place.

Macroeconomic and financial volatility was cited by 45% of respondents as the main trigger to start planning, HSBC Life said, with advice from financial advisers ranking second, particularly among younger people.

The average starting age for legacy planning stands at 45, suggesting many delay action despite early awareness.

Preferences show a shift towards cross-border planning, with about 94% of respondents choosing international financial centres such as Hong Kong, Singapore, and the United Arab Emirates.

Cognitive Market Research said the global insurance market for high-net-worth people is projected to grow 7% annually to $166b by 2031 from $103.5b in 2024. The Asia-Pacific region accounted for 23% or $23.8b of global revenue, and is expected to expand by 9%.

Rising wealth concentration and growth in affluent populations are driving demand for specialised insurance and risk management, particularly as people acquire high-value assets such as luxury property, art, and private jets.

Questions to ponder:

• How can insurers convert strong intent into legacy planning adoption?
• Will younger people drive earlier and more structured wealth transfer planning?
• What explains higher life insurance uptake in India, Thailand, and Indonesia?