In this iPMI Global Insights article, iPMI report author Ian Youngman, dives deep into the Global Wealth Report 2023, and the High Net Worth market for iPMI.
Ian Youngman is a writer and researcher specialising in insurance. He writes regularly for a variety of magazines, newsletters, and on-line services. He publishes a range of market reports, and undertakes research for companies. To read his latest report, International Health Insurance 2023, please click here, or visit the REPORTS section of iPMI Global.
The latest Global Wealth Report predicts global wealth to reach USD 629 trillion by 2027, despite 2022 being the first year of wealth decline since 2008. Credit Suisse and UBS launched the fourteenth edition of the Global Wealth Report jointly. Regionally, the loss of global wealth was heavily concentrated in wealthier regions such as North America Europe.
- Latin America is the outlier with a total wealth increase.
- The largest wealth increases were recorded for Russia, Mexico, India and Brazil.
- In terms of wealth per adult, Switzerland continues to top the list followed by the USA, Hong Kong SAR, Australia and Denmark.
- Ranking markets by median wealth puts Belgium in the lead followed by Australia, Hong Kong SAR, New Zealand and Denmark.
- The number of USD millionaires worldwide fell by 3.5 million during 2022 to 59.4 million.
- Global wealth will rise by 38% over the next five years. Growth by middle-income markets will be the primary driver of global trends.
- By 2027 number of millionaires will reach 86 million.
- The number of ultra-high-net-worth individuals (UHNWIs) is likely to rise to 372,000 individuals.
- France with 2.82 million millionaires has passed the UK as the country with the third-highest number of millionaires, trailing only the USA (22.7 million millionaires) and China (6.2 million millionaires).
- Japan and India are witnessing a surge in its rich population.
- HNW is a major market with much potential for IPMI.
- An increasing number of insurers target HNWs.
- Some insurers have products for the market but others just offer standard IPMI that has many exclusions, restrictions and co-pays.
- But like the home and motor market, not all have prepared for the sector that demands instant service, claims fully paid, 24-7 response, and bespoke solutions.
- The market is growing.
- The potential is often in countries in Africa and Asia that may be overlooked.
- But those that do not meet HNW needs will find that like home and motor, they have to leave the market.