L.I. Far East is trying to bring some of the benefits of insurance policies to high net worth individuals. The company is championing the Privatbancassurance concept pioneered in Europe by Luxembourg-based insurance firm Lombard International.
L.I. Far East managing director Paul Rust said his company worked closely with Lombard.
'They are the biggest provider of these sorts of services in the world. They have a huge pan-European business, but it is only since we formed a broker in Hong Kong that they have begun working with us to develop products for Asia,' he said.
Mr Rust said high net worth clients, wealthy by definition, had little need for traditional insurance, being effectively self-insured. However, they had a great need for effective tax structures, asset protection and succession schemes. Insurance products could help deliver all three.
In Europe, Privatbancassurance brings sophisticated insurance solutions to private bank clients. The aim is to enable them to achieve tax and estate planning, and asset protection, through insurance, while leaving asset management and advisory services in the hands of their private bank.
'There is a lot of talk in the Asian private bank community in relation to the issue of insurance for high net worth individuals,' Mr Rust said.
'It is a relatively recent phenomenon, but it has taken off in the past three or four years. We try to use life assurance as a structuring tool for high net worth individuals. We basically believe the high net worth client doesn't really need traditional insurance. What they do need is the tax protection, asset protection and succession planning benefits that insurance can bring. So we try to provide an insurance policy to actually hold your assets. It is very similar in a way to the use of offshore trusts.'
