Referring to studies projecting hundreds of billions of dollars in intergenerational wealth transfers by 2030, Bindra notes that insurance will play an increasingly critical role as an asset class. UBS’s 2025 Billionaire Ambitions report highlighted that 91 heirs inherited a record US$297.8 billion ($383.15 billion), a 36% increase from the previous year.
“Insurance tends to be a sort of tax-neutral vehicle, which can provide that flexibility across borders,” he says.
Policies in this space will also help families divide inheritances equally. “In many instances, we see clients or families who have assets that cannot be either liquidated or divided. So, if you’ve got, say, three or four kids, but a lot of your wealth is actually in your business, real estate or art, you cannot sell or divide these things equally, right? So, this is where insurance proceeds can come in and be a neat solution for wealth equalisation.”
Given the size and complexity of these portfolios, personalisation becomes “really, really important”, says Bindra. “The ability of the insurance company to create bespoke solutions is quite key and we can’t do it alone. We need to work with reinsurers. We have to make sure that we get the right level of capacity to be able to cater to these needs.”
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In Singapore, most of HSBC’s HNW clients are opting for index plans. “It’s a high net worth legacy estate planning solution, but it offers the upside link to market performance. But at the same time, it offers downside protection. It’s a very attractive proposition for high-net-worth clients,” says Bindra.
He adds that HSBC Asset Management will manage the assets gathered. These products are linked to indices such as the S&P 500 and the Nasdaq.
“Our global markets team creates those indices. Then the day-to-day custody services, whether you have to manage these assets and liquidations, redemptions and new money coming in, the custodial services of sorts [are] managed by our own MSS (markets and securities services) team.”
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For Katherine Ho, managing director, Southeast Asia, Lioner, insurance policies for HNW families serve multiple purposes. They provide liquidity upon death to fund estate taxes, equalise distributions and avoid forced asset sales. “Insurance protection of over US$100 million is common and needs to match the clients’ financial needs,” she says.
These policies also serve as a cross-border wealth transfer tool for families with global assets. They can also apply to families with children studying abroad or planning to relocate. “For example, insurance tools can be important for pre-migration planning to the UK and Australia,” Ho adds.
HNW families also use insurance to protect their assets. This includes traditional insurance policies and private placement life insurance (PPLI), which provide privacy, confidentiality, and structural advantages, says Ho.
As policies provide long-term certainty and non-market-correlated value, some HNW clients use them as a stabiliser in volatile markets. Based on what she has seen so far, a lot of HNWIs use insurance to access and participate in the investment portfolio of large international insurance companies.
Finally, succession governance is a key focus to ensure wealth moves efficiently through trusts and holding structures.
Ho advises HNWIs to approach insurance as part of their overall wealth structure rather than as “isolated purchases”.
HNWIs should also prioritise liquidity creation and tax efficiency over simple protection needs.
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In addition, HNWIs should ensure their policies align with their succession goals, governance structures and family agreements.
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