HSBC Life’s Post

As the population in Singapore ages, how do life insurers support the wellbeing of their ageing customers? HSBC Life believes that mental, physical, and financial wellbeing are interconnected. That's why we take a holistic approach to supporting our customers in reaching their financial goals and taking care of their wealth and health needs at each life stage. Our CEO in Singapore Harpreet Bindra spoke to Anoop Khanna at Asia Insurance Review on the role for life insurers in Singapore, and the use of technology and AI to drive efficiency and better outcomes for customers. Read more here. #LifeInsurance #HealthAndWellness

I’m reposting some of the Life insurance market data for 2023 showing growth versus 2022. In many markets life insurance penetration is still relatively low particularly in the broader mass market segments. If we can agree it is good for customers and communities to have greater protection for various life events and therefore big opportunities exist to increase penetration and close the protection gap in Asia. I’m passionate about the role insurance plays in our communities. Most of us will have personal experience of the benefits of insurance. Mine was losing two brothers in their 40’s with families including children who relied on them. The died suddenly, no warning or planning. One had life insurance the other one didn’t. It’s bad enough losing your husband or father and dealing with that. Losing your home and income is another. To address the protection gap in Asia, put simply, two aspects must be addressed being customer access (including awareness and education) via distribution and affordability of premiums. Let’s exclude HNW for a moment and focus on broader populations who need much simpler solutions. Broadly, in Asia you can buy life insurance (including health) from a life insurance agent or a bank, and, particularly in S/E Asia digital access and education on buying life insurance is negligible. Life insurance awareness and understanding of needs is still fairly low, so it generally sold not bought. The number of life insurance agents actually selling is declining (why? reputation of agency and appeal of this career to younger people) even more so post Covid. Banks have great customer access however, it is not their core business and many Bancassurance deals fall short of expectations why? Product development cycles are still long and simple products are still relatively lacking why? This brings me to my next point on customer affordability. To address the protection gap simple products are needed at affordable premiums with broad access and distribution. Distribution is still quite limited and costs are still relatively high. The model of big upfront for banks and high commissions for tied agency focused on upfront first year commissions driving lower persistency is also impacting pricing and affordability. There is a big risk or opportunity for disruption of the distribution models making insurance more simple, accessible and more affordable to mass market. Health insurance sold via Life insurers has also been impacted with higher claims post Covid and many markets still offering 100% percent coverage of hospital bills leading to over prescribing of treatment, over usage and driving increased premiums leading to reduced affordability and lower volumes of sales. Singapore is a great example of industry and regulatory reform that addressed product and pricing structures to address over prescribing of treatment, increased claims and rising premiums. What are your thoughts?

Amid an uncertain investment environment, Asia’s growing ranks of high-net-worth individuals are seeking solutions for seamless wealth transfer to the next generation. According to the HSBC Quality of Life Report, this is one of the main goals for affluent clients when it comes to legacy planning. Life insurance has long played a role in securing financial resilience for beneficiaries. With rising affluence, its role has expanded beyond protection to become a vital part of legacy planning for the next generation. I was pleased to share my perspectives on this topic with CNA. Recognising the interconnectedness of physical, mental and financial well-being, HSBC Life Singapore aims to support customers in maintaining a lifestyle that boosts their well-being. To that end, we have incorporated various wellness-related incentives into our newly introduced Indexed Universal Life plan. With a comprehensive range of wealth and legacy planning propositions, offered to our customers though our multi channel distribution strategy, HSBC Life Singapore will continue to meet the health, wealth, and protection needs of our customers. #wealthplanning #legacyplanning #holisticwellbeing

🎉 Congratulating a Monumental Milestone in Wealth Management 🎉 I would love to congratulate the HSBC team on a new Guinness World Record for the most valuable life insurance policy ever sold, at a staggering US$250 million, issued by HSBC Life in Hong Kong. This landmark accomplishment is more than just a number. It symbolizes the pinnacle of trust and excellence in wealth management, business succession, estate management, and legacy planning for ultra-high-net-worth individuals. As the ultra-high-net-worth population in Asia continues to soar, the demand for sophisticated insurance solutions to safeguard the future generations grows alongside. Edward Moncreiffe, CEO of HSBC Life, Hong Kong and Macau, highlights, “The issuance of these high-value life insurance policies reaffirms Hong Kong’s position as both a preferred destination for wealth management and a leading international insurance hub.” As we reflect on this milestone, let's acknowledge the profound impact of such achievements on the industry's evolution. The past 12 months have seen HSBC Life issue 10 other policies valued at US$50 million or higher, demonstrating a strong market presence and a commitment to meeting the sophisticated needs of HNW clients. This record is a testament to the depth of talent in Hong Kong's life insurance market, the robust competition among banks, brokers, and insurers, and the strength of our regulatory regime. Here's to many more records and milestones ahead. Read their press release here: https://lnkd.in/eRdJ_Pxj #HSBCLife #WorldRecord #WealthManagement #LegacyPlanning #HNW #InsuranceInnovation

With the rise of Asia’s wealth, the region is witnessing a soaring demand for legacy planning as part of one’s total wealth management. Both HSBC Life in Singapore and Hong Kong have been responding to this by offering legacy planning solutions to help customers bequeath their assets to their loved ones, ensuring their beneficiaries will obtain maximum value from the assets and properties that they leave behind for them. #LegacyPlanning #TotalWealth Harpreet Bindra Daniel Lum Rachel Chen Belin Poh Dorlisa Goh Laine Santana Andrea Leung

When Life Was Greater For about a decade, we have travelled alongside the GEH's journey through significant events such as the implementation of RBC2 (see note), the COVID-19 pandemic, and most recently, the Ukraine war. We waited for the situation to stabilize before urging GEH to address some misalignment issues this year. We aim to resolve the misalignment through our resolutions, particularly since GEH had no such issues in the past. Instead of exercising corporate leadership as the controlling shareholders to address the matter, OCBC decided to proceed with a low valuation offer. We are surprised and disappointed by this approach. Given OCBC's long history and reputation, we had expected higher standards in the spirit of good corporate governance. We believe OCBC could have treat us, its partners in insurance business, better. Note: #1. "In 2004". The "2004 offer" keep getting into my mind. #2. RBC 2: Risk based capital 2. In 2012 MAS reviewed the Risk Based Capital framework for Sg insurance companies after GFC2009 to strengthen the Sg insurance industry against shocks. The process took 8 years and was finally completed in 2020. https://lnkd.in/g2sTPa2U Sources: GEH AR2003, GEH AR2023

Insurance as the part of wealth management tool.