Insight Report: Insurance for HNWIs - Current State and Future Prospects

  • ID: 3643821
  • Report
  • 39 pages
  • Timetric
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FEATURED COMPANIES

  • ACE
  • AIA
  • AIG
  • Aon
  • Chubb
  • Ironshore
  • MORE
The 'Insight Report: Insurance for HNWIs - Current State and Future Prospects' analyzes insurance products and services market for HNWIs.

As the HNWI insurance market is constantly evolving, insurers are developing new products and services, with customization a key strategy to meet HNWI specific needs. Growth in the number of HNWIs and a consistent rise in their wealth are creating new opportunities for insurers globally. The global HNWI population increased by 2.8%, from 17.3 million in 2013 to 17.8 million in 2014, and is expected to reach 19.8 million in 2018.

Developed markets offer significant opportunities for wealth managers and insurers, as HNWI clients in these markets still account for most of the global HNWI population and wealth. Infrastructure in the HNWI market, such as banks, financial advisors and family offices, is well developed.

Emerging markets are still in early stages of development, in terms of wealth management services, with a recent history of wealth creation as a result of entrepreneurship. However, growth in the number of private enterprises in emerging markets has resulted in rising HNWI population and wealth.

The report also discusses in detail the trends across life and non-life insurance products for HNWIs. Life insurance has become a key component of wealth planning strategy for HNWIs. It is a major investment involving huge premiums and managing issues such as formation of a trust for wealth transfer to the next generation, estate planning, charitable giving, and tax planning in a broader context. It also enables HNWIs to properly structure business and personal assets. Concurrently, non-life insurance also enables HNWIs to protect the value of their assets.

HNWIs typically possess a broad range of insurable assets such as real estate, household collections, jewelry, yachts and private aircraft, among others. HNWIs are also often targets of liability suits, requiring personal liability cover.

Summary:

The 'Insight Report: Insurance for HNWIs - Current State and Future Prospects' provides detailed analysis on insuring HNWIs. It provides:

- An overview of the global HNWI insurance market, and product innovation, competition and the distribution network.

- Insights into the key market trends and developments in the HNWI insurance market.

- Analysis of market opportunities and challenges faced by insurance companies in marketing and selling HNWI insurance products.

- Understanding of HNWIs' insurance requirements through insights on their attitude, behavior, concerns and unique risk profile.

Scope:

- The report discusses in detail the growth in the HNWI population and wealth in key markets as opportunities for the insurance industry.

- It analyzes the state of the HNWI insurance market in developed and emerging economies.

- It discusses the role of insurance as a wealth planning tool, and explores demand for life and non-life insurance products among HNWIs.

- It builds understanding of heterogeneity among HNWIs through wealth segmentation.

Reasons To Buy:

- Gain an understanding of the role of life and non-life insurance as a strategy for HNWIs' overall wealth.

- Understand the different types of life and non-life insurance products available for HNWIs in the market.

- Develop an insight into insurance needs and risk profiles for HWNI sub-segments, and build an understanding of strategies to target HNWIs at different life stages.

- Understand how premium financing can help HNWIs to capitalize on assets and pay high life insurance premiums, without liquidating assets or affecting cash flow.

Key Highlights:

- The majority of HNWIs are underinsured, particularly when cover is not revised as asset values appreciate and risk pertaining to personal liability increases. This mismatch between the risk profile and required cover puts HNWI assets at risk. Homes, valuable collections and personal liability are the most underinsured risks in personal lines of insurance.

- The HNWI insurance market has been dominated by specialist brokers internationally, mainly because HNWI insurance is a bespoke product that requires professional advice. Specialist brokers and financial advisors have built long-standing relationships with HNWI clients, and have gained their trust. Insurers need to capitalize on this channel to market and distribute insurance products and services to HNW clients.

- Developed markets offer significant opportunities for wealth managers and insurers, as HNWI clients in these markets still account for most of the global HNWI population and wealth. Infrastructure in the HNWI market, such as banks, financial advisors and family offices, is well developed. As a result, more than half of all assets under management (AuM) in the wealth management sector are accounted for by North America and Western Europe, two of the world’s most developed regions.

- One reason for HNWIs to buy life insurance is liquidity. HNWIs face unique challenges in paying premiums, in terms of liquidity and tax consequences. Premium financing through assets as collateral enables HNWIs to pay high life insurance premiums, without liquidating or affecting the cash flow. It also allows HNWIs to reduce out-of-pocket expenditure on life insurance.
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FEATURED COMPANIES

  • ACE
  • AIA
  • AIG
  • Aon
  • Chubb
  • Ironshore
  • MORE
1 Executive Summary
2 Overview of HNWI Insurance
3 Regional HNWI Markets
3.1 North America
3.2 Europe
3.3 Asia-Pacific
3.4 Latin America
3.5 The Middle East
3.6 Africa
4 Strategies for Targeting HNWIs
5 Trends in Life Insurance for HNWIs
6 Trends in Non-Life Insurance for HNWIs
7 Conclusion
8 Appendix
8.1 Methodology
8.2 Contact Timetric
8.3 About
8.4 Timetric’s Services
8.5 Disclaimer

List of Tables
Table 1: Innovation in HNW Insurance
Table 2: HNWI Segmentation by Wealth
Table 3: HNWI Populations by Region, 2010–2019
Table 4: Regional Overview, UHNWI Population, 2010–2019
Table 5: HNWI Populations and Wealth (US$ Billion) – North America
Table 6: HNWI Populations and Wealth (US$ Billion) – Europe
Table 7: HNWI Population and Wealth (US$ Billions) – Asia-Pacific
Table 8: HNWI Population and Wealth (US$ Billion) – Latin America
Table 9: HNWI Population and Wealth (US$ Billion) – The Middle East
Table 10: HNWI Population and Wealth (US$ Billion) – Africa
Table 11: Understanding the Top of The Pyramid – HNWI Buyers
Table 12: UHNWIs’ Insurance Needs
Table 13: Role of Life Insurance in Managing Wealth for HNWIs in the US
Table 14: Inheritance and Gift Taxes (2015)

List of Figures
Figure 1: Future Concerns of HNWIs Worldwide by Assets (2014)
Figure 2: Stages in the life of HNWI Drives Insurance Needs
Figure 3: Premium Financing Process
Figure 4: Addressing Non-Life Insurance Needs for HNWIs
Figure 5: Most Underinsured Risks in HNW Personal Lines Insurance
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