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Swiss Life, a name long associated with stability and financial expertise in Europe, continues to break new ground in Asia’s dynamic wealth management arena. With a legacy spanning over 168 years, Swiss Life has built a global reputation for trust and innovation. In its most recent annual results, the company reported net profits exceeding CHF 1.1 billion, upholding an A+ credit rating from Standard & Poor’s. Managing client assets of CHF 314 billion worldwide, Swiss Life leverages the strength of its 10,000 employees and 17,000 advisors across international markets. Yet, beyond the numbers and legacy, Swiss Life’s true competitive edge lies in its forward-thinking approach—especially in Variable Universal Life (VUL) and Private Placement Life Insurance (PPLI) solutions, which are gaining remarkable traction in Asia’s high-net-worth segment.

Growing Demand for VUL and PPLI in Asia

At the Hubbis Wealth Solutions Forum in Singapore, Claire Tan, Business Development Director at Swiss Life Global Solutions, shared insights on the surging relevance of life insurance solutions for high-net-worth individuals (HNWIs) across Asia. Over the past 16 years—and with offices in Singapore and Hong Kong—Swiss Life has sharpened its focus on VUL and PPLI, delivering bespoke solutions that address the evolving complexity of estate and succession planning.

Why VUL Matters More Than Ever

1. Tax Deferral & Efficiency – VUL policies offer significant tax deferral opportunities, allowing gains to accumulate within the policy without immediate taxation. In jurisdictions grappling with new reporting standards, this feature can be particularly advantageous.
2. Inheritance Tax Exemptions – Many HNWIs face rising estate taxes or fear the introduction of inheritance taxes. VUL policies often provide shelter from these levies, ensuring a smoother transfer of wealth to future generations.
3. Flexible Asset Management – Through single-premium investment-linked life insurance products, clients can tap existing assets—such as shares, bonds, or cash—to fund premium payments. This flexibility not only preserves liquidity but also secures substantial death benefits (up to US$100 million) that can be used for estate equalization or generational wealth planning.

Claire Tan emphasizes that the hallmark of VUL is customizability: “Each policy can be tailored to reflect the specific risk tolerance, legacy goals, and asset composition of the client.” With Swiss Life’s guidance, HNWIs can fine-tune these policies to match personal financial ambitions while meeting regulatory demands in multiple jurisdictions.

Opportunities for Wealth Managers

Banks, External Asset Managers (EAMs), Multi-Family Offices (MFOs), and Independent Financial Advisors (IFAs) have also recognized VUL’s potential for both their clients and their own business models:

• Asset Retention: By positioning a VUL policy, advisors help clients retain and consolidate assets within the same financial ecosystem, safeguarding Assets Under Management (AUM).
• Enhanced Revenue Streams: In addition to ongoing asset management fees, advisors often earn supplementary commissions from insurance products.
• Strengthened Client Relationships: VUL solutions are inherently long-term, encouraging relationship managers (RMs) to maintain and deepen client rapport. This connection can extend to next-generation heirs, ensuring continuity of client relationships over decades.

Claire Tan underscores this mutual benefit: “When a client uses VUL, it fosters deeper engagement between advisors and their customers. We often see the relationship expand to include the next generation, fortifying trust and loyalty for years to come.”

Evolving Regulatory Landscape Across Asia

Regulatory shifts in Asia have accelerated the appeal of VUL and PPLI policies, as HNWIs seek efficient, compliant ways to protect their wealth. Key examples include:

1. Thailand – The adoption of the Common Reporting Standard (CRS) and new tax regulations nudged many Thai HNWIs toward life insurance solutions to maintain privacy and ensure tax compliance.
2. Taiwan – The introduction of Controlled Foreign Corporation (CFC) rules has led numerous clients to unwind offshore company structures. By migrating these assets into VUL and PPLI policies, they maintain certain benefits while reducing tax exposure.
3. Indonesia – Indonesia’s tax amnesty, combined with CFC rules and CRS implementation, has driven wealthy clients to look for robust tax-planning tools. VUL’s blend of confidentiality, asset protection, and estate planning fits the bill.
4. Malaysia – Anticipated capital gains tax changes and potential inheritance taxes have spurred interest in VUL among affluent Malaysians. By placing assets into a life insurance policy, clients can structure estates for efficient, orderly wealth distribution.

A Real-World Example: Malaysian Entrepreneur

Claire Tan presented a case that captures the essence of why HNWIs are gravitating to VUL policies.

• Profile: A Malaysian client in his late 40s, founder of a listed company, with four children.
• Challenge: Concerns about estate equalization, potential changes in capital gains tax, and future inheritance taxes.
• Solution: The client transferred US$10 million in company shares into a VUL policy, securing a US$46 million death benefit.
• Outcome: The strategy simplified estate division among the client’s children and offered tax planning advantages, highlighting the versatility of VUL.

Key Trends Shaping Asia’s Wealth Management Future

1. Impact Investing – Many HNWIs now demand that part of their portfolios align with personal or philanthropic values. A VUL policy can integrate sustainable and impact-focused investments, making it a powerful tool for legacy building beyond pure financial returns.
2. VUL Financing – Banks increasingly offer financing for life insurance premiums, using a client’s existing assets as collateral. This structure lowers the immediate outlay, broadening access to high-value policies.
3. Bundling VUL with Discretionary Portfolio Mandates (DPM) – Forward-thinking financial institutions combine VUL with DPM services, offering a comprehensive package of portfolio diversification, estate planning, and customized reporting—all within a single policy.
4. Tech-Driven Personalization – As digital platforms refine client data analytics, advisors can customize VUL solutions with even greater precision. From automated risk assessments to dynamic portfolio rebalancing, technology is making life insurance policies smarter and more responsive.

Looking Ahead: Swiss Life’s Continuing Edge

The continued evolution of tax legislation, reporting standards, and client expectations will likely drive stronger demand for VUL and PPLI products in Asia. Swiss Life’s enduring financial strength, collaborative culture, and client-centric ethos position it as a leader in this rapidly shifting landscape.

1. Trusted Heritage & Innovation – With more than a century-and-a-half of experience, Swiss Life blends time-honored expertise with a contemporary focus on agile product development—paving the way for consistent growth.
2. Global Perspective – Operating in multiple jurisdictions, Swiss Life remains updated on cross-border regulations, enabling HNWIs to navigate complex global requirements confidently.
3. Comprehensive Solutions – From single-premium VUL policies to flexible PPLI offerings, Swiss Life’s range of services can be tailored to suit clients of varying needs, risk appetites, and cultural contexts.

“Our ambition,” says Claire Tan, “is to offer HNWIs holistic, future-proof solutions. In a world of regulatory complexities and rapid wealth transfers, VUL is no longer just an insurance product—it’s a strategic pillar for long-term financial security.”

Final Thoughts

As more Asian markets tighten their tax and reporting laws, the synergy between high-net-worth clients, wealth management firms, and innovative insurance providers grows increasingly critical. Swiss Life’s approach to Variable Universal Life and Private Placement Life Insurance exemplifies the cutting edge of modern estate planning: flexible, globally compliant, and purpose-built for today’s complex financial world.

With its robust financial standing and unwavering commitment to innovation, Swiss Life stands poised to guide Asia’s HNWIs—and their advisors—through the intricacies of intergenerational wealth transfer, regulatory compliance, and holistic portfolio management. By transforming a traditional insurance policy into a multi-dimensional wealth planning tool, Swiss Life reaffirms its position as a trusted leader in Asia’s next wave of wealth management.