Hong Kong’s affluent look to Singapore for insurance and wealth diversification, amid violent protests
- Singapore Life says it has seen a 30 per cent uptick in demand from Hong Kong residents seeking insurance products in the past three months
Insurance technology start-up Singapore Life has reported a 30 per cent uptick in demand from Hong Kong’s high net worth individuals seeking insurance products with legacy planning options, as the recent protests in the city has spurred more Hongkongers to consider parking their wealth abroad.
Founder Walter de Oude told the Post that over the past three months he has seen some “20 to 30 per cent” growth in applications for its universal life insurance products from Hong Kong residents. The insurance products are denominated in US dollars and distributed through private bankers and insurance brokers in Hong Kong.
“Due to the protests, we are seeing strong interests from high net worth individuals who would ordinarily invest into a Hong Kong insurer’s product, but are now considering Singapore as an alternative country to invest their wealth,” said de Oude.
Hongkongers are also piling into portfolio bonds, which are tailored insurance contracts also popular among high net worth individuals. These contracts often include a death benefit and are used by clients as part of their legacy planning to enable their beneficiaries to receive predefined payments.
On Monday, an estimated 550,000 Hong Kong residents took to the streets in what has become an annual pro-democracy march on July 1. But this year’s event follows several other large scale protests in recent weeks, as protesters marched to express their displeasure at the government’s proposed extradition law with China, which has since been removed from the current legislative term which ends in July next year.
De Oude said life insurance continued to be its biggest business segment. The insurer now has life insurance policies totalling S$7.3 billion (US$5.38 billion) worth of coverage. In January last year the company acquired S$6 billion in life coverage when it bought the Singapore life insurance portfolio from the local unit of Zurich Life. The insurance technology firm was licensed as a direct life insurer by the Monetary Authority of Singapore 2017.