5 Things to Know About the Global Life High-Net-Worth Market

Slideshow July 03, 2024 at 11:45 AM Share & Print

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So, you’d like to reach more millionaires.

So would John Hancock and its parent, Manulife Financial.

Jean Wong, the CEO of Manulife Global HNW, briefed the company’s investors on her unit’s strategy for reaching and serving high-net-worth people, ultra-high-net-worth people and the “millionaires next door” last week during an investor day meeting in Hong Kong.

Manulife set up the business by combining three existing wealth advisory units in 2023. Sales increased to $309 million in new annualized premium equivalents, from $239 million the year before.

Even in the wealth market, “there are underserved segments,” Wong said.

Many think of the aging of the baby boomers as a retirement opportunity, but “this is also a legacy-planning, generational wealth-planning opportunity,” she added.

See the accompanying gallery for five insights that Wong shared about how Manulife sees the global wealth market.

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1. The vast majority of millionaires are of the 'next door' variety.

There are about 35 million people around the world with at least $1 million in wealth.

"Millionaires next door," or those with $1 million to $5 million in wealth, are about nine times more common than high-net-worth individuals, who have $5 million to $30 million in wealth.

Ordinary high-net-worth individuals are about nine times more common than ultra-high-net-worth individuals, who have more than $30 million in wealth. The average ultra-high-net-worth individual has about $100 million in wealth.

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2. The United States is a comparatively slow-growing market.

The United States is fine for advisors seeking wealthy clients, but nothing special.

Manulife expects the North American millionaire population to grow just 47% over the five-year period from 2022 through 2027. The only slower-growing market is Europe.

The Statue of Liberty. Credit: National Park Service

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3. The hot markets are in South Asia.

India and other countries in South Asia are the best places for millionaire market growth.

Manulife expects the number of millionaires in South Asia to grow by 107%.

The Taj Mahal. Credit: Adobe Stock

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4. They want health-related products.

You may want to avoid talking about health, but Manulife sees selling health-related products alongside life insurance and income planning products as key to diversification, and COVID-19 has changed what wealthy people are thinking about.

"Since the global pandemic, we have observed a noticeable increase in customer awareness and demand for protection and health coverage," Wong told Manulife investors.

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5. They want to work with reputable providers.

Wong said the reputation of the advisor and the financial services providers is critical in the high-net-worth market.

“'I’m a high-value customer,'" Wong said, giving the thoughts of the client a voice. "'I’m going to purchase a $100 million life insurance policy. I want to do business with a company that’s going to be there.'”

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