Sun Life Hong Kong has become the first insurer in the local market to introduce an Indexed Universal Life Insurance (IUL) product. This new offering is only available to professional investors and is aimed at meeting the advanced financial planning needs of high-net-worth individuals (HNWIs).
This launch comes in response to new regulatory guidance and a growing demand among wealthy clients for smarter wealth management tools.
Regulatory Support for IUL Products
In March, the Hong Kong Insurance Authority and the Hong Kong Monetary Authority released a joint circular. It set out rules for how insurers can market and sell IUL products to qualified investors. These clearer rules have encouraged insurers to expand their product options for this specialized group.
Clement Lam, CEO of Sun Life Hong Kong, said the company moved quickly to create the product in response to market changes.
“We are proud to be the first insurer in Hong Kong to launch an indexed universal life insurance product for professional investors. This innovative solution supports our strategy to serve high-net-worth clients by offering both financial protection and investment opportunities,” he said.
A Wealth Planning Tool for the Rich
IUL policies combine insurance coverage with investment options linked to market indices. This makes them attractive to clients who want to grow their wealth while also protecting it. The structure helps with asset diversification, long-term growth, and legacy planning.
Asia has seen a rapid rise in wealthy individuals. According to the Wealth Report 2025 by consultancy Knight Frank, Hong Kong now has over 42,000 people with assets of US$10 million or more. This growing group is looking for advanced financial products to manage and pass on their wealth.
Christine Yeung, General Manager of Life and Health at Sun Life Hong Kong, highlighted the company’s strong performance in this area.
“In 2024, we ranked first among non-bank insurers in average premium per single-premium policy. Also, policies with a sum insured of HK$100 million or more made up 11.9% of our total insured amount. This shows strong demand from wealthy clients for our high-end insurance solutions,” she said.
Insurance Becoming a Key Part of Wealth Strategy
Across Greater China, more wealthy individuals are using insurance as a key part of their financial plans. A joint study by Manulife Hong Kong and Deloitte found that 70% of HNWIs include insurance in their wealth strategies. Nearly one-third of them allocate over 11% of their assets to insurance.
Life insurance is still the most popular choice, followed by medical and savings-related policies. Many investors—about 57%—see insurance as a way to pass on wealth smoothly and reduce family disputes.
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