Across Europe’s private banking and wealth management sector, life insurance is being reassessed. Previously seen as an ancillary product, it is now increasingly regarded as a key planning tool that supports investment efficiency, risk management, succession, and cross-border continuity.
At the HNW Insurance Summit – Zurich 2025, David Moser, Chief Sales Officer and Executive Committee member at Baloise Life Liechtenstein, shared insights from over 20 years of experience in private banking and insurance. He emphasised that amid regulatory changes, mobile wealth, and growing intergenerational complexity, insurance has become a necessary component rather than an optional one.
Key Takeaways
- Insurance as Core Infrastructure: For private banking clients, insurance is no longer a peripheral add-on but a foundational pillar of holistic wealth management.
- Liechtenstein’s Strategic Positioning: Political stability, strong asset protection, and dual market access to Switzerland and the European Economic Area (EEA) underpin Liechtenstein’s relevance.
- Private Banking and Private Placement Life Insurance (PPLI) Are Intertwined: Historical data and market cycles show a persistent and deep connection between private banking growth and life insurance adoption.
- Cross-Border Demand Is Structural: Client mobility and regulatory divergence are driving sustained demand for robust, internationally viable insurance solutions.
- Switzerland as the Next Growth Market: Despite its wealth concentration, Switzerland remains underpenetrated in advanced insurance planning, presenting significant long-term opportunity.
A Long View from the Front Line
Moser’s perspective is informed by history. Reflecting on the past 25 years, he traced the recurring waves in European insurance demand, each closely tied to regulatory change, tax amnesties, and shifts in disclosure regimes.
“There have always been boom cycles,” he explained, “windows of opportunity that come in waves.” He recalled the surge in Germany in the early 2000s, followed by Italy’s voluntary disclosure programmes, and later by developments in France and Portugal.
“These were not isolated events,” Moser noted. “They showed a consistent pattern: whenever private banking clients face structural or regulatory change, insurance becomes central.”
What has changed, he argued, is not the relevance of insurance, but the industry’s understanding of it. “Private banking today is not just about investments. It is about protecting wealth, transferring it, and ensuring continuity across generations and that’s were insurance comes in. Insurance is a core part of wealth management for high-net-worth-individuals. For Banks and Asset Managers insurance strengthens clients relationships and adds value.”
Liechtenstein: Stability by Design
When asked why Liechtenstein continues to play such a prominent role in European life insurance, Moser pointed first to fundamentals. “Liechtenstein offers a unique mix of political stability, legal certainty, and economic resilience,” he said.
As one of a small group of countries holding an AAA sovereign rating with a stable outlook, Liechtenstein provides a degree of predictability that is increasingly valued by globally mobile families. Its membership in the EEA ensures access to European markets, while long-standing bilateral agreements with Switzerland enable seamless servicing of Swiss clients.
“This dual market access is critical,” Moser emphasised. “It allows us to serve clients who have ties to Switzerland and the wider European market without friction.”
Asset Protection as a Differentiator
Beyond jurisdictional access, Moser highlighted asset protection as a defining strength of the Liechtenstein model. Under Article 78 of the Liechtenstein Insurance Contract Act, assets held within insurance contracts benefit from explicit statutory protection.
“And the protection is even stronger when beneficiaries are spouses or children.”
In practical terms, this means that insurance assets are shielded from the insurer’s creditors, offering clients an additional layer of security at a time when counterparty risk is being reassessed across financial markets.
“For many families,” Moser said, “this legal certainty is just as important as investment performance.”
“Another specific provision in Liechtenstein similar to other jurisdictions clearly separates policyholder assets from the insurer’s balance sheet,” he added.
Private Banking and Insurance: A Proven Link
Moser was keen to dispel any lingering notion that insurance sits at the margins of private banking. Drawing on industry data from Italy, he noted that approximately 20 percent of Italian private banking assets are held within life insurance structures.
“That figure is remarkable,” he said. “It demonstrates how deeply embedded insurance is within sophisticated wealth management frameworks.”
He cited a phrase that has gained traction in Italian banking circles: Non c’è private senza insurance, there is no private banking without insurance.
“This captures the reality perfectly,” Moser observed. “Private banking is about far more than asset allocation. It is about managing risk, ensuring succession, and safeguarding wealth over decades.”
From Product to Planning Tool
A recurring theme in Moser’s remarks was the need to reposition insurance in the client conversation. “Clients rarely ask for insurance,” he acknowledged. “They ask about protecting their families, managing risk, and passing on wealth.”
Insurance, he argued, should be introduced as a response to these concerns, not as a standalone product. “When positioned correctly, it becomes a natural part of the solution.”
This shift requires closer collaboration between insurers, private banks, lawyers, and advisers. “Insurance works best when it is embedded within a broader planning framework,” Moser said. “Not siloed, but integrated.”
Cross-Border Complexity and Structural Demand
The structural drivers behind insurance demand are unlikely to fade. Moser pointed to increasing client mobility, regulatory divergence across Europe, and the growing complexity of family structures.
“Families today are international by default,” he said. “Assets, beneficiaries, and residency are often spread across multiple jurisdictions.”
In such an environment, insurance offers something few other tools can: legal consistency. “Life insurance is recognised almost everywhere,” Moser noted. “That universality is a powerful advantage.”
Switzerland: An Underdeveloped Opportunity
Despite Switzerland’s concentration of wealth, Moser believes it remains significantly underdeveloped in advanced insurance planning.
“There is extreme wealth here,” he said. “Swiss citizens are among the richest globally, and Switzerland continues to attract affluent foreign residents.”
Yet adoption of sophisticated insurance solutions has lagged. “The market has historically been retail-focused,” Moser observed. “What is missing is a broader understanding of insurance as an integral part of holistic wealth planning.” “There is still a strong preference for direct investments. Although insurance solutions in Switzerland offers flexibility, asset protection and tax advantages, they are still underused due to the low awareness of both advisors and clients.” he adds.
He expects this to change. “There is a cultural shift underway, from transactional banking to long-term planning. As that shift accelerates, insurance will become far more prominent.”
Looking Ahead: Continuity Over Cycles
Moser concluded by returning to first principles. “If you strip everything back,” he said, “wealth management is about continuity.”
Markets will rise and fall, regulations will evolve, and families will change. “But the need to protect wealth and transfer it responsibly does not disappear, especially for HNWI and UHNWI.”
In that context, insurance offers durability. “It is one of the few tools designed to operate across generations,” Moser said. “That is why it remains indispensable.”
