Kathmandu. Insurance companies that serve Asia’s ultra-wealthiest families are facing operational and regulatory pressure as scrutiny mounts over cross-border asset transfers.
Stringent anti-money laundering regulations and requirements to disclose beneficial ownership are prolonging onboarding deadlines and making it harder to issue policies at higher premiums, analysts say. “Households with wealth and businesses in Singapore, Hong Kong and Malaysia are increasingly choosing structures that allow for “capital mobility and diversification across asset classes,” Catherine Ho, managing director of Southeast Asia at Liner International Consultancy, said in an emailed response to questions.
In July 2025, Singapore’s monetary authority fined nine financial institutions $21.6 million for violations related to the $2.4 billion money laundering scandal. Hong Kong’s insurance authority recently issued a warning to three brokerages and fined them $55,000 for failing to properly verify customers and monitor politically relevant individuals.
For insurance companies that issue high-value policies, these rules require excessive documentation and additional compliance checks, increasing administrative costs and slowing policy implementation. The demand for specialised insurance structures is strong. Private placement life insurance policies, which are used to manage offshore holdings and plan for intergenerational asset transfers, have become popular.
These deals typically have a high premium and are designed for families with complex cross-border assets. Traditional products are also attracting customers. Indexed global life policies and savings plans are increasingly being used to diversify assets, accumulate cash value, and simplify old plans.
Martin Wong, regional CEO of Singapore-based Grandtag Financial Consultancy, said the indexed global life market in Asia has “definitely doubled” as clients and advisors gain experience with the product. Volatility-controlled indices have improved the premium-to-sum assurance ratio. This has made these policies even more attractive.
Succession planning has become a weak point for many families. The Schroders Wealth Management Survey found that 70 per cent of households discuss asset transfers. “However, only 23 per cent to 30 per cent have formal plans,” the survey said.
This difference is due to family dynamics, administrative burdens, and the complexity of cross-border holdings. Especially when children study or live abroad.
Liquidity has emerged as a priority. Many wealthy families prefer insurance structures that provide access to capital without having to sell key assets or disrupt the business. “Jumbo life policies, which offer high value coverage, are increasingly being used to provide asset liquidity during times of market volatility,” Wong said. ’
Insurance advisers say discussions on older plans are becoming more structured. Families are formalizing property arrangements and carefully reviewing compliance obligations in many jurisdictions.
The combination of increased regulatory scrutiny, cross-border reporting requirements, and rising demand for high-premium insurance products has increased operational pressures on insurance companies. Failure to comply can result in hefty fines and reputational damage. However, more administrative resources are needed to manage complex policies. –Agency
