High-net-worth individuals in Singapore are starting to look beyond basic life insurance coverage towards more holistic protection offerings, including healthcare support, estate planning, tax optimization, business succession, and debt risk mitigation, according to a new study.

Insurance solutions play an important role in wealth management among Singapore's wealthy, with 90 percent incorporating this into wealth and legacy planning, AIA Singapore said in a new report published on Wednesday.

Some 70 percent of HNW respondents in Singapore said that insurance comprises more than 10 percent of their wealth and legacy planning, compared with 52 percent among Asia respondents, while three-quarters of HNWs in the region use insurance for succession and legacy planning, the report said.

Eighty-six percent of Singapore-based HNWIs own medical or critical illness insurance policies, but only 48 percent of HNW entrepreneurs in Singapore have business protection through insurance solutions, which include business loan protection, health and illness income protection, business transfer and legacy planning and inheritance equalization, compared to the regional average of 54 percent.

Helping Safeguard Legacies

«Early planning and holistic wealth management are critical in helping safeguard legacies, especially during times of economic uncertainty, and smart insurance solutions can provide a source of passive income streams as well as the asset diversification required to buffer against market volatility,» Ho Lee Yen, AIA Singapore chief customer and marketing officer, said.

HNW individuals are a diverse segment and face specific challenges based on the source of their wealth. These challenges are well-suited to insurance solutions and there is an opportunity to increase the understanding and awareness of how insurance products can augment wealth planning,» Dustin Ball, partner and APAC insurance strategy leader at EY, said about the findings.

The report was based on interviews and data from customers in Mainland China, Hong Kong SAR, Taiwan (China) and Singapore.