Manulife Hong Kong collaborates with Deloitte to offer insights into legacy planning solutions for high-net-worth individuals
HONG KONG,Feb. 17,2025 -- 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.
Overhalf of respondents aim to leverage insurance for legacy and succession planning
The report highlightsthat life insurance is the leading formof coverage,with close to 78% of responding HNWIs owning a life insurance policy,whilemedical 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 futuregenerations. In addition,when asked to rank the most important outcomes they hoped to achieve in asset inheritance,64% of those who picked "prioritizing the distributionof their assets in their desired mannerto prevent inheritancedisputes" identified it as their main anticipated outcome.Among all respondents,67% acknowledge that designating beneficiaries through insurance can help mitigateconflicts in the eventual distribution of their wealth.
"This comprehensive report,drawing onDeloitte's consulting expertise,offers valuable insights intothe 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,HNWIsareturning 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'texclusive to those with significant assets; in fact,effective legacy planning can benefit anyone who wishesto 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 onhelpingits 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 toa network of premier professional service providers,each offering specialized expertisefortailored insights and guidance.
Guided by its overarching focus on customer needs,Manulife's diverse rangeof 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 enablescustomers 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,empoweringthem to navigate complexplanning challenges with confidence," Mr. Makadded.
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.
Manulife and Deloitte have jointly published a new report on the financial planning preferences and considerations of high-net-worth individuals in the Greater China region. Pictured: Albert Mak,Chief Agency Officer of Manulife Hong Kong and Macau (left),and Anthony Lau,Deloitte Private Hong Kong Leader (right).
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.
Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited ("DTTL"),its global network of member firms,and their related entities (collectively,the "Deloitte organization"). DTTL (also referred to as "Deloitte Global") and each of its member firms and related entities are legally separate and independent entities,which cannot obligate or bind each other in respect of third parties. DTTL and each DTTL member firm and related entity is liable only for its own acts and omissions,and not those of each other. DTTL does not provide services to clients. Please see www.deloitte.com/aboutto learn more.
Deloitte Asia Pacific Limited is a company limited by guarantee and a member firm of DTTL. Members of Deloitte Asia Pacific Limited and their related entities,each of which is a separate and independent legal entity,provide services from more than 100 cities across the region,including Auckland,Bangkok,Beijing,Bengaluru,Hanoi,Hong Kong,Jakarta,Kuala Lumpur,Manila,Melbourne,Mumbai,New Delhi,Osaka,Seoul,Shanghai,Singapore,Sydney,Taipei and Tokyo.
Deloitte Private is the brand under which member firms and their related entities in the Deloitte organization provide services to privately owned entities and high-net-worth individuals.
This communication contains general information only,and none of DTTL,its global network of member firms or their related entities is,by means of this communication,rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business,you should consult a qualified professional adviser.
No representations,warranties or undertakings (express or implied) are given as to the accuracy or completeness of the information in this communication,its member firms,related entities,employees or agents shall be liable or responsible for any loss or damage whatsoever arising directly or indirectly in connection with any person relying on this communication.
© 2025. For more information,please contact Deloitte China.
[1]Manulife and its insurance advisors do not provide any tax or legal advice. Any information provided in the report is for reference only and does not constitute professional advice. If needed,please consult relevant tax,legal advisor(s),or other related professionals.
[2]The content of this material does not contain the full terms of the policy(ies),and the full terms can be found in the corresponding policy document(s). Please refer to the product brochure/product guide to understand more about the product features and risks.
[3]The statement about first-in-market features is based on comparisons with other publicly available savings insurance plans and life insurance plans issued by Hong Kong's major life insurance companies for individual customers as of April 2024.
[4]Applicable to policies issued in Hong Kong only. This is an administrative arrangement and is not part of the product features. Such application is subject to our prevailing administrative rules which shall be determined and modified by us from time to time without prior notice. Please note that the service may not be available with the designated new plan after the currency switch option is exercised.
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