Stronger Life Settlement Growth Continues Despite Current Economic Turbulence
November 01, 2022
This edition marks Conning’s 17th consecutive annual review and forecast of the life settlements market. Conning’s ten-year forecast calls for double-digit increase in the annual gross market.
HARTFORD, CT – November 1, 2022 – The economy emerged from 2021 with an outlook for renewed growth. However, consumer concerns about Covid-19 lingered. Those concerns led to a decrease in the amount and number of life settlements in 2021. During 2022, global unrest and Covid-19 have created an economic environment of high inflation. In response central banks are raising interest rates, possibly leading to a recession. Given this economic turbulence, what’s the outlook for continued life settlement growth?
Conning’s “Life Settlements: Growing Through Turbulence” is its 17th annual life settlement review that examines the key forces fueling continued growth within the life settlement industry.
“Consumers are likely to seek additional sources of income to offset the economy pressures. Investor demand for alternative assets is forecast to remain strong. Both factors are positive for life settlement growth,” said Roberta Lauria, an AVP of Insurance Research at Conning. “In addition, the development of a broader, direct-to-consumer life settlement market is likely to widen the number of consumers who can access life settlements.”
“The life settlement market decreased in 2021, in terms of the amount of face value settled and the in-force amount of settled policies. Given the favorable nature of the drivers of life settlement market growth, our analysis of the life settlement market is that the average annual volume of new life settlements over out ten-year forecast is approximately $5.2 billion,” said Scott Hawkins, the Head of Insurance Research at Conning. “For investors, the insurance companies whose policies they purchased continue to be financially strong. The rising interest rate environment is favorable for the premium optimization strategies used by life settlement investors to improve their returns.”
The Conning study, “Life Settlements: Growing Through Turbulence” analyzes Covid-19’s impact on the life settlement market and asset class. The study reviews the current market for life settlements and presents our forecast for 2022 - 2031. Further, the study analyzes the performance of insurers targeted by life settlements investors.
“Life Settlements: Growing Through Turbulence” is available for purchase from Conning by calling (888) 707-1177 or by visiting https://go.conning.com/2022-Life-Settlements-Growing-Through-Turbulence.html.
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Conning (www.conning.com) is a leading investment management firm with a long history of serving the insurance industry. Conning supports institutional investors, including insurers and pension plans, with investment solutions, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America.
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