Wealth professionals across Europe predict increasing appetite for Unit-Linked life insurance

part 1
Key findings
0 %
believe that Unit-Linked life insurance is a good wealth and succession planning tool.
0 %
of wealth professionals say that more than half of their clients use Unit-Linked life insurance.
Succession
Planning
Succession Planning
is rated as the top motivator across all wealth professionals for using Unit-Linked life insurance.
A relevant and largely used wealth planning tool
Key drivers to recommend Unit-Linked life insurance:
1st: Succession planning
2nd: Tax deferral
3rd: Bespoke wealth structuring
3rd: International portability
4th: Flexibility of asset ranges
5th: Client retention
6th: Advice from lawyer / adviser
Succession planning underpins the appeal of Unit-Linked life insurance solutions.

This is closely followed by the tax deferral element of the solution, which enables a more efficient management of a clients’ investments over the long term, and the ‘bespoke’ aspect of life insurance as a structuring tool.

0 %
believe that Unit-Linked life insurance is a good wealth and succession planning tool.
Wealth professionals in France (86%), Italy (79%) and Belgium (66%) use Unit-Linked life insurance the most. On average, across Europe, just 4% of wealth professionals have never used Unit-Linked life insurance policies with their clients.
0 %
of wealth professionals believe that Unit-Linked life insurance has a higher asset stickiness effect when compared to common industry alternatives.
Unit-Linked life insurance has an asset stickiness effect that is considered higher when compared to holding the assets directly. This is an important attribute for wealth advisers.
A positive outlook for Unit-Linked life insurance
The key influences identified by these wealth professionals all echo structural parts of the Wealth Assurance offering. Their optimism for the Wealth Assurance sector and appetite for its benefits are therefore encouraging. Over 80% of respondents state that ‘the market for Unit-Linked life insurance will stay relatively stable over the course of the next 5 years, and over 54% believe that ‘it will increase slightly to substantially.’
Estimated evolution of the use of
Unit-Linked life insurance solutions over the next decade:
0 %
of wealth professionals predict growth of the Unit-Linked life insurance market over the next 5 years.
This bodes well for the industry that Unit-Linked life insurance is increasingly used for wealth planning.
30% of wealth professionals have more than half of their clients who have or have had a Unit-Linked life insurance policy
Furthermore, 50% of Insurance Broker and Family Office respondents stated that more than half of their clients have a Unit-Linked life insurance policy.
Proportion of respondent’s existing private clients using
Unit-Linked life insurance as a wealth planning tool:

The figures rise in France and Portugal:

70%
France
60% Portugal
France and Portugal are the 2 countries with the highest proportion of respondents with over half of their clients who either have or previously have had a Unit-Linked life insurance policy.
There is potential to grow the use of Unit-Linked life insurance solutions for clients of Private Bankers. Almost 60% stated that less than 20% of their clients have a Unit-Linked life insurance policy.
There are no unanimous alternatives to Unit-Linked life insurance

Resolutely, the three most popular alternatives among those that do not currently use Unit-Linked life insurance as a wealth planning tool are:

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Discretionary managed investment accounts

26%

Investment accounts managed in ‘execution only’ or advisory

18%

Fixed interest products or guaranteed products

15%

UK, Swiss and Italy-based wealth professionals consider a Trust as a preferred alternative. However, a Trust can be combined with wealth assurance solutions.
Part 4
PART 2
Provider preferences and key criteria for decision making

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