South Korea: Affluent turn to insurance overseas, particularly HK
Source: Asia Insurance Review | Mar 2024
Insurance policies offered by insurers operating in Hong Kong are particularly favoured by Korean high-net-worth individuals and professionals such as lawyers and doctors.
Offshore insurance that offers 6-7% annual returns is gaining popularity among wealthy investors residing in Gangnam, South Korea, reported The Chosun Daily. The returns are seen as higher than those offered by local insurance plans.
In addition, overseas insurance policies are sought for their retirement security benefits and dividend payments, presenting a safer alternative to stocks and funds while yielding higher returns than bonds.
The Hong Kong-based insurance policies return 90% of earnings to policyholders annually while retaining 10% of the profits. Since dividends are distributed annually, the policyholder’s savings grow over time.
This contrasts with Korean insurance products, which do not offer dividend payments, funnelling all investment income to the insurers instead. A