Insurance should be integrated with the offering of wealth managers to target and penetrate into the hitherto untapped high net wealth investor market, according to a new insight report.
The report from online data provider for key financial sectors, Timetric’s Insurance Intelligence Centre, said the HWNI segment remained largely untapped in terms of the amount of insurance purchased.
There was also a lack of awareness about the benefits of insurance products for that segment, including the scale and risk management benefits for a segment with a large amount of portfolio assets.
The report suggested the integration of insurance with wealth managers as they had the contacts, trust, and knowledge of the HNWI segment that would be beneficial for insurers looking to expand their reach.
HNWI insurance products offered higher returns than normal insurance classes due to its specialised nature and could attract higher premiums than standard policies, the report said.
“For example, more complex life insurance policies such as Universal Life and private placement life products incorporate greater flexibility for clients and as a result, more complexity,” the report said.
The Asia-Pacific HNWI market saw a compound annual growth rate of 5.55 per cent between 2010 and 2014, while North America remained the largest HNWI market, with 5.8 million in 2014.
