In 2022 we expect to see an increase in the use of Master Trust structures in premium insurance financing. The Master Trust structure was historically set up as a quick way for high net worth individuals (“HNWI”) who did not have a trust structure already set up for premium financing. Due to the travel restrictions in place and the fact that foreign law governed insurance policies cannot be written in the PRC, HNWIs there are utilising Master Trust structures to enable them access to Bermuda law governed insurance policies. The benefit of the Master Trust structure is that the policy is issued in Bermuda to a professional trust company, but the HNWI obtains the benefit of the policy. In recent months we have been advising several banks on structures and expect more banks to accept the Master Trust structure due to client demand.
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