“Given international client mobility, where clients are investing in increasing numbers of jurisdictions, the value of insurance has never been as great,” Tucker said, arguing that many private banks under appreciate its value.

“It is often an interesting solution to a wide range of potential problems facing high net worth and ultra-HNW clients. Many of our clients have increasingly complex succession planning needs because of having footprint in more jurisdictions, both in terms of investments and physical presence. Insurance is a useful tool to settle liabilities that often arise as a consequence," Tucker asserts.

He also raises the importance of insurance in liquidity issues.

“Entrepreneurs worldwide are often illiquid because they are continually investing in operating businesses. Insurance can provide liquidity to achieve estate equalisation during the critical stage of wealth transfer to future generations."

“Take an entrepreneur with a business worth $100 million whose only other asset is a $20 million portfolio of financial assets. The entrepreneur has three children, only one of whom will take over the business. The entrepreneur wants to bequeath equal amounts to his three children but doesn’t want the business to be broken up. So he or she takes out a life insurance policy to pay out a lump sum on his death to not prejudice the other two children. As such, insurance is achieving estate equalisation."

Tucker also notes that Asia is some way ahead of the rest in using insurance to manage and protect wealth. It is the most mature market and tops the tables in volume of premium insurance per annum, he said. “Whilst the use of insurance is much more prevalent and the solution is better known by Asian clients, it is still relevant all around the world."

The notion that insurance is a basic service that requires limited knowledge could not be further from the truth, Tucker said.

“International insurance is a highly sophisticated wealth planning tool requiring experienced and qualified individuals to both sell, market and provide ongoing maintenance for insurance products sold,” he countered.

Regulation and cross border rules can often create barriers to completing insurance business and staff sometimes aren’t well-versed in how to “unlock the potential value,” Tucker added.

But this lack of knowledge is not for lack of available training for wealth managers or private bankers. Training options are “widespread” across jurisdictions in Tucker's view. The problem for him lies more in senior management at private banks not identifying and supporting talent in this area.

For behavioural scientist Davies, getting across the value of insurance also depends on the regulatory environment and how much people are protected from large risks by the state. “There is certainly less need for it in strong welfare states, for example,” he said.

In terms of innovative products and services coming into the insurance market as a result of COVID-19, Davies sees the biggest gap to fill is decision support tools to help lead people through the complexity of insurance decisions in the context of their overall wealth.

“Too often insurance products are purchased in isolation from the larger picture. Therefore consumers may very easily be led to purchasing much more, or much less, than is appropriate for their unique needs.” At best, Davies says, “people follow rough rules of thumb that are roughly wrong for everyone." He gives the example: “You buy sufficient life insurance to cover your mortgage, which is a simple but very poor proxy for the amount of life insurance that is actually right for any individual.”

Regulation of the insurance sector has brought headaches but also "significant" innovation, according to Aon's Bird, largely stemming from the Solvency II regime introduced in 2016 that changed capital and reporting obligations for insurers. "It caused advisors and insurers to find new solutions to client problems," he said. While Bird has seen fairly rapid innovation, particularly in the reinsurance space, innovation needs to go a lot further if more employers want to secure their defined benefit schemes with insurers.