Sun Life Hong Kong has claimed to be the first insurer in the market to introduce an indexed universal life insurance (IUL) product in the local market, exclusively available to professional investors.
This marks a strategic move in response to regulatory developments and a growing appetite among high-net-worth individuals (HNWIs) for advanced wealth planning tools.
The product launch follows a joint regulatory circular issued in March by the Hong Kong Insurance Authority and the Hong Kong Monetary Authority.
The guidance established clear parameters for marketing and selling IUL products to qualified investors, enabling insurers to broaden their offerings in this niche segment.
Clement Lam, CEO of Sun Life Hong Kong, said the insurer had expedited product development to align with market shifts.
“We are pleased to be the first insurer in Hong Kong to introduce an indexed universal life insurance product for professional investors. This innovative product helps strengthen our business strategy in the high-net-worth client market, comprehensively addressing the diverse financial and protection needs of Sun Life's professional investor clients,” he said.
Indexed universal life insurance policies offer policyholders exposure to market indices while maintaining insurance coverage.
The structure is designed to appeal to affluent clients seeking asset diversification, long-term growth, and estate planning capabilities.
Asia has seen a sharp increase in its HNWI population, now ranking second globally in growth. Hong Kong is home to over 42,000 individuals with assets of US$10 million or more, indicating sustained demand for sophisticated financial products, according to the Wealth Report 2025 by consultancy Knight Frank.
Christine Yeung, general manager of life and health at Sun Life Hong Kong, emphasised the insurer’s performance in the segment.
“According to the Insurance Authority and our data for 2024, we ranked first in average premium per single-premium policy among non-bank insurers. Notably, policies with sum insured of HK$100 million or above account for 11.9% of the total sum insured, demonstrating strong demand from high-net-worth clients for our diversified product portfolio and their growing appetite for premium wealth management solutions,” she said.
Parallel trends in Greater China suggested a broader shift among wealthy individuals toward insurance as a core financial planning instrument.
A joint study by Manulife Hong Kong and Deloitte found that 70% of surveyed HNWIs integrate insurance into their wealth strategies, with nearly a third allocating more than 11% of assets to insurance.
Life insurance remained the most popular product, followed closely by medical and savings-related policies. A significant portion of respondents – 57% – cited insurance as a method to facilitate smoother generational wealth transfers, often aimed at reducing familial disputes.
