SINGAPORE – Asia’s high-net worth (HNW) market will hit double-digit growth in the next two to five years, according to the estimates of insurers and brokers in Singapore and Hong Kong.
The firms told reinsurer Swiss Re that the growth will be higher than before the Covid-19 pandemic, with most of them expecting Asia’s HNW market to expand by 10 per cent to 20 per cent.
Their optimism stems from the belief that emerging Asia is set to outperform other regions.
In 2023, economic growth in emerging Asia was more than 6 per cent. Swiss Re expects this to be just under 6 per cent in each of the next two years.
Swiss Re’s report on Asia-Pacific’s HNW insurance market issued Oct 8 said: “We expect the gap in HNW wealth between the United States and Asia-Pacific to narrow as growth in the latter, notably in the region’s emerging economies and China, continues to outperform globally.”
Asia-Pacific is home to about 30 per cent of global HNW financial wealth, behind only the Americas.
The HNW segment is defined as individuals or households that have assets worth US$1 million (S$1.3 million) to US$50 million.
The report noted that while the HNW market in Asia-Pacific includes inheritors of family wealth, increasingly, there are now more first-generation entrepreneurs who are entering the millionaire bracket.
These entrepreneurs will be dealing with legacy planning for the first time, giving the insurance sector opportunities.
Mr Samuel Berry, who heads the global HNW underwriting team in Swiss Re, said at a briefing on Oct 8 that generational wealth transfer is a key reason for the reinsurer’s growing customer base.
“This segment of new-generation HNW individuals is a new type of customer. They want to protect their wealth and be there for their families
