When defining insurance and non-insurance wealth bands, a high net worth individual (HNWI) is defined as a person with a net worth of at least US$1 million, and an ultra-high net worth individual (UHNWI) is a person with a net worth of at least US$30 million in financial assets, excluding primary residence, collectibles and consumer durables. HNWIs tend to be self-made professionals, entrepreneurs and those who inherit large sums of money, and are typically between the ages of 40 and 60. There are a number of key organizations that specialize in the high net worth market, including banks, brokers and insurance companies.
Who is a high net worth individual?
Where are HNWIs?Asia Pacific boasts the largest number of HNWIs and, since 2014, the highest HNW wealth globally. Despite a slowing of the region’s economies, political upheaval and a rising US dollar, Asia Pacific’s HNWI numbers overtook those of North America, growing by 8.5% to reach 4.7 million in 2014, a million more than in 2012. By 2015, the number had surpassed 5 million, reflecting a further 9.4% increase over 2014. The region’s HNWI numbers grew at 3.5 times the rate of the rest of the world, while the wealth of HNWIs grew at 5.8 times the rate. India recorded the largest gains in HNWIs (26.3%) and wealth (28.2%), moving into third place after Japan and China for HNWI wealth across Asia Pacific, displacing Australia into fourth position. China, Indonesia and Thailand all showed large increases in their population and in wealth due to strong equity and real estate market gains. While China is expected to be the strongest driver of global economic growth up to 2025, Hong Kong, India, the UK and the US are also contributors to economic expansion, particularly in the financial services, hightech and health care industries.1,2
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