Asia wealthy insurance market could hit $140b by 2030

Only 15% to 20% currently use life cover in financial planning.

Asia’s high-net-worth insurance market could generate between $100b and $140b in annual new-business premiums by 2030 as the region’s wealthy population grows and more assets move across generations, according to McKinsey & Company. 

McKinsey estimates that only 15% to 20% of high-net-worth individuals in Asia currently include life insurance in their wealth planning, leaving a large part of the market underserved. 

The estimate is based on industry data and interviews with insurance executives and other experts. 

Asia-Pacific is expected to have about $120t in personal financial assets by 2030, or around 40% of the global total. 

The region’s financial assets are forecast to grow at a compound annual rate of 6.4% between 2025 and 2030, whilst assets held by high-net-worth clients are expected to grow by more than 8% a year. 

The region is also expected to see about $5.8t in assets transferred between generations by 2030, with ultra-high-net-worth individuals accounting for most of the transfers. 

This is increasing demand for insurance products that can be used for estate planning, liquidity and wealth transfers. 

Private banks are expected to play a significant role in the market. McKinsey said high-net-worth clients often make insurance decisions with input from private banks, brokers, financial advisers and family offices. 

Private banks and family offices typically manage the main client relationship, whilst brokers help arrange cross-border insurance products. 

Insurers are also looking to work more closely with mid-sized private banks, external asset managers and financial advisers as these firms expand their wealth-management services. 

Singapore and Hong Kong are amongst the main centres for high-net-worth insurance in Asia. Singapore benefits from its private banking and family office sector, whilst Hong Kong remains an important market for participating life insurance products and has an established distribution network. 

Some insurers are also using multiple booking centres, including Bermuda, Hong Kong and Singapore, to serve clients whose assets and family structures span several countries.  

McKinsey said specialist high-net-worth insurers generally have greater capacity to handle large policies than traditional retail-focused insurers.

Specialist firms may have automatic underwriting limits of $50m to $75m or more, compared with about $2m to $10m for retail-focused insurers. 

Typical sums assured are around $5m to $15m for specialist high-net-worth products, compared with $1m to $5m for retail-focused offerings.