The Reinsurance Group of America (RGA) says the great wealth transfer that will make Millennials the wealthiest generation in American history, is currently underway and insurers need to change their offerings and approach to these clients.
In a look at different products being developed around the world, the reinsurer’s latest note, Innovations in High Net Worth Insurance, adds that insurers need to be aware of changing needs, including the need to transition client wealth earlier than in the past.
A significant opportunity
“As part of this worldwide wealth transfer, many high-net-worth individuals have changed their approach to wealth,” they write. “Conversations among bankers, advisors and wealth planners are taking place earlier and include more family members.” She adds that insurance has an important role to play, adding that the wealth transfer underway represents a significant opportunity for the industry.
“Insurance needs are influenced by global family dynamics and changing regulations across jurisdictions. A diverse range of insurance products should cater to each aspect of estate planning, tax optimization and liquidity needs,” they state, adding that the products also need to speak to both generations and take the needs of both into consideration. “The high-net-worth market is moving towards more sophisticated, flexible products tailored to the unique needs of ultra-high-net-worth individuals.”
