New Manulife and Deloitte Report: Over Two-Thirds of High-Net-Worth Individuals in Greater China Consider Insurance Essential for Legacy and Succession Planning

Manulife Hong Kong collaborates with Deloitte to offer insights into legacy planning solutions for high-net-worth individuals

HONG KONG, Feb. 17, 2025 /PRNewswire/ -- Manulife Hong Kong and Deloitte have unveiled key findings from a new report^[1] examining the financial planning preferences and considerations of high-net-worth individuals (HNWIs) in the Greater China region. The report reveals that 70% of respondents have integrated insurance into their asset portfolios, with 30% allocating 11% or more of their assets to insurance products. This underscores the role insurance solutions play in the financial planning strategies of HNWIs.

The study, which focuses on HNWIs with net assets of at least HKD 7.8 million in the Greater China region, also offers fresh insights into how this segment approaches insurance as a wealth planning tool. It explores the unique challenges this segment faces and demonstrates how insurance solutions can effectively support HNWIs in their wealth preservation, accumulation, and distribution goals.

Over half of respondents aim to leverage insurance for legacy and succession planning

The report highlights that life insurance is the leading form of coverage, with close to 78% of responding HNWIs owning a life insurance policy, while medical insurance (76%) and savings insurance (60%) follow close behind. Notably, 57% of respondents express a desire to leverage insurance to facilitate a smoother transfer of wealth to future generations. In addition, when asked to rank the most important outcomes they hoped to achieve in asset inheritance, 64% of those who picked "prioritizing the distribution of their assets in their desired manner to prevent inheritance disputes" identified it as their main anticipated outcome. Among all respondents, 67% acknowledge that designating beneficiaries through insurance can help mitigate conflicts in the eventual distribution of their wealth.  

"This comprehensive report, drawing on Deloitte's consulting expertise, offers valuable insights into the legacy planning preferences of HNWIs in Greater China," said Albert Mak, Chief Agency Officer of Manulife Hong Kong and Macau. "In today's evolving financial environment, HNWIs are turning to insurance as a key strategic means of achieving financial stability, effectively managing risks, and preserving their legacies. It's important to note that legacy planning isn't exclusive to those with significant assets; in fact, effective legacy planning can benefit anyone who wishes to pass on their wealth to future generations."

"Insurance has evolved from a risk management product to a legacy planning tool highly preferred by our HNWI clients," said Anthony Lau, Deloitte Private Hong Kong Leader. "It mimics some key features of will, family trust, and limited power of attorney, making insurance one of the most accessible legacy planning components. Moreover, in certain jurisdictions, tax authorities offer preferential tax treatment such as tax exemption, deferral and deductions for insurance products, as outlined in their tax law. Families are becoming more open-minded about starting legacy planning at a younger age, having recognized the benefits of facilitating the smooth transition of wealth and maintaining harmonious family relationships."

A holistic approach to meeting the needs of HNWIs

Reflecting the insights revealed in the report, Manulife has established a holistic approach to ensure it is well-positioned to meet the financial planning needs of HNWIs. Given their unique circumstances and goals, Manulife has established a dedicated Private Client Wealth Planning team focused on helping its high-net-worth clients preserve, accumulate, and transfer their wealth to next generations while managing unforeseen risks. In addition, based on client's needs, Manulife can introduce clients to a network of premier professional service providers, each offering specialized expertise for tailored insights and guidance.

Guided by its overarching focus on customer needs, Manulife's diverse range of products, including Genesis, Whole-In-One-Prime 3, and Future Assure^[2], offer features and administrative arrangements that cater to various customer segments, including HNWIs. This includes the market-first^[3] Legacy Choice^[4] service within designated insurance products, which enables customers to transfer their policy, either on a designated date or when the successive policy owner reaches a designated age, in the event of the policyowner's passing.

"The combination of legacy planning expertise, leading specialist advice and innovative features is essential to delivering bespoke and holistic solutions that effectively address the individual needs of HNWIs, empowering them to navigate complex planning challenges with confidence," Mr. Mak added.

Other notable findings highlighted include:

• Concerns related to legacy succession:

Among the respondents who selected the following as one of their top five concerns, the percentages below represent those who ranked it as their primary worry:

• • Disputes among heirs: 52% fear that wealth distribution may trigger family conflicts.
  • Heirs' ability to manage wealth: 43% are concerned about potential issues such as poor financial planning, lack of investment knowledge, excessive spending, and immature decision-making.
  • Risk of wealth loss or depreciation: 43% worry about the potential loss or depreciation of wealth during the succession process.
• Regarding retirement priorities:
  • 86% emphasize the importance of quality of life and the associated expenses.
  • 69% consider their living environment important, including housing options and potential overseas relocation.
  • 65% prioritize access to high-end medical protection.

About the Study

The report jointly published by Manulife and Deloitte was developed based on proprietary research and interviews with relevant stakeholders including HNWIs, as well as an analysis of qualitative and quantitative data. Customer research was conducted in Greater China. Details of the report, initially available in Chinese and later in English, can be downloaded here. 

About Manulife Hong Kong

Manulife Hong Kong has been a trusted name for more than 125 years. Since our operations started in Asia in 1897, we have grown to become one of the top-tier providers of financial services, offering a diverse range of protection and wealth products and services to about 2.6 million customers in Hong Kong and Macau. We are committed to helping make decisions easier and lives better for our customers.

Manulife Hong Kong, through Manulife International Holdings Limited, owns Manulife (International) Limited, Manulife Investment Management (Hong Kong) Limited, and Manulife Provident Funds Trust Company Limited. These entities are all subsidiaries of Manulife Financial Corporation.

About Manulife

Manulife Financial Corporation is a leading international financial services provider, helping people make their decisions easier and lives better. With our global headquarters in Toronto, Canada, we provide financial advice and insurance, operating as Manulife across Canada, Asia, and Europe, and primarily as John Hancock in the United States. Through Manulife Wealth & Asset Management, we offer global investment, financial advice, and retirement plan services to individuals, institutions, and retirement plan members worldwide. At the end of 2023, we had more than 38,000 employees, over 98,000 agents, and thousands of distribution partners, serving over 35 million customers. We trade as 'MFC' on the Toronto, New York, and the Philippine stock exchanges, and under '945' in Hong Kong.

Not all offerings are available in all jurisdictions. For additional information, please visit manulife.com.

About Deloitte

Deloitte China provides integrated professional services, with our long-term commitment to be a leading contributor to China's reform, opening-up and economic development. We are a globally connected firm with deep roots locally, owned by our partners in China. With over 20,000 professionals across 31 Chinese cities, we provide our clients with a one-stop shop offering world-leading audit, tax and consulting services.

We serve with integrity, uphold quality and strive to innovate. With our professional excellence, insight across industries, and intelligent technology solutions, we help clients and partners from many sectors seize opportunities, tackle challenges and attain world-class, high-quality development goals.

The Deloitte brand originated in 1845, and its name in Chinese denotes integrity, diligence and excellence. Deloitte's global professional network of member firms now spans more than 150 countries and territories. Through our mission to make an impact that matters, we help reinforce public trust in capital markets, enable clients to transform and thrive, empower talents to be future-ready, and lead the way toward a stronger economy, a more equitable society and a sustainable world.

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