New research from insurance-based wealth solutions provider, Utmost, has revealed a growing adoption and awareness of international wealth insurance across Asia.
The global market study, the second of its kind performed by NMG Consulting, shows rising sales of these solutions with long-term growth drivers signalling increased confidence in continued expansion of the sector – especially of investment-linked solutions across the regions.
The sector remains significantly underpenetrated, providing substantial scope for future growth with this opportunity underpinned by several favourable demographic, client and industry trends and enhanced by continued improvements in market understanding.
Growing high net worth (HNW) and ultra high net worth (uHNW) populations, evolving international tax regimes and increased wealth mobility are creating demand for cross-border wealth planning solutions. Improving institutional familiarity and awareness of international wealth insurance alongside increased broker capacity mean the market is well placed to support its growing adoption.
Hong Kong and Singapore lead the segment in Asia
In Asia, international wealth insurance sales increased from GBP5.7bn to GBP6.4bn – a CAGR of 6.0% – between 2023 and 2025, with the two-year view providing a strong indication of the market’s current growth trajectory following post-COVID normalisation.
International wealth insurance solutions are increasingly well established as a legacy planning vehicle for HNW and uHNW families in the region, and are now widely supported by private banks via international brokers.
As wealth transfer accelerates, there is the opportunity for further growth in Asia as private banks continue to expand access to investment-linked open architecture solutions amid growing appetite among primary advisers to recommend international wealth insurance solutions.
The region has also benefitted from a sharp rebound in Hong Kong and Singapore international broker sales following the pandemic as well as the structural rotation from protection to savings solutions which is supporting growth in broker production.
Utmost Head of Asia Mark Christal said that international wealth insurance is becoming an increasingly established part of wealth and legacy planning across Asia. “Greater understanding among brokers and advisers, as demonstrated by increasing demand for investment-linked open architecture solutions such as PPLI and VUL, is now beginning to drive up adoption among a wider segment of HNW and UHNW families. As awareness continues to develop, there is a significant opportunity for international wealth insurance to play a growing role in helping families manage increasingly complex cross-border wealth and succession requirements,” he said.