“The sale of such an insurance policy shows Hong Kong’s rise as a leading ultra-high-net-worth insurance market in Asia and the world,” Moncreiffe said in an exclusive interview with the Post. “Previously, such jumbo-sized policies have only been issued in the US, UK and Bermuda. Now, Hong Kong has proven it has the capacity to issue such mega-sized policies.”

The purpose of the policy is for estate planning, he added.

The policy sold to the tech titan was underwritten by 19 insurers, but the current one has been underwritten by HSBC Life alone, according to the insurer. The client was introduced by insurance broker Charles Monat Group, which focuses on the high-net-worth segment.

“Insurance risk can be underwritten, and placed, anywhere in the world, but the customer chose to buy it in Hong Kong, showing the city has the talent pool and ecosystem to provide the cover and services needed by these high-net-worth customers,” Moncreiffe said.

“As high-net-worth individuals look to insurance as a way of leveraging and transferring wealth, Hong Kong will increasingly stand to benefit and win more than its fair share of this business.”

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Besides issuing the record policy, HSBC Life has sold 10 other policies of US$50 million or more to customers over the past 12 months.

“We are seeing a rising demand for mega life insurance policies in Asia, and most of them are for succession planning purposes,” he said. “There is a wave of first-generation private wealth that is now starting to think of transferring their wealth, business, enterprise, etc, to the next or subsequent generations.”

Most ultra-high-net-worth customers’ wealth is tied up in their business operations or real estate, which cannot be cashed in quickly, according to Moncreiffe.

Wealthy customers in Western countries for many years have been addressing estate management and legacy planning through insurance, and this demand is starting to grow in Asia, he said.

“Insurance can provide liquidity and it is divisible among the different family members or charities named by the policyholders. It is also managed outside probate so it provides certainty and privacy.”

The number of millionaires in Asia, excluding China and Japan, will rise from about 10 million in 2022 to 22 million by 2030, according to a study by HSBC Global Research in August 2022.

The overall insurance market has been growing in Hong Kong in the past decade, mainly because of buyers from mainland China. New business premiums in the city last year had doubled from 10 years ago, the study showed.

Mainland tourists spent HK$59 billion (US$7.5 billion) on insurance policies in Hong Kong last year, according to the Insurance Authority.

Last year’s tally was a significant jump from the HK$2.1 billion in 2022, HK$700 million in 2021 and HK$6.8 billion in 2020, when the city was mostly closed to outside visitors because of pandemic-related restrictions. It was also higher in the pre-Covid era, when sales stood at HK$43.4 billion in 2019, HK$47.6 billion in 2018 and HK$50.8 billion in 2017.

The Hong Kong government’s promotional efforts, such as those made by Chief Executive John Lee Ka-chiu, which included roadshows in Southeast Asia and other overseas markets over the last two years, have created greater awareness about Hong Kong’s insurance industry globally.

“Hong Kong should continue to harness these competitive advantages, which are difficult for other cities to replicate,” Moncreiffe said. “With additional stimuli and support, Hong Kong’s position in this sector will be unsurpassable.”