Consumer and Investor Demand Signal Stronger Life Settlement Growth Forecast
October 26, 2021
This edition marks Conning's 16th 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 – October 26, 2021 – Despite the disruption caused by Covid-19, the life settlement market in 2020 enjoyed its fifth consecutive year of growth in the amount of face value settled. Looking ahead, the outlook for continued growth remains favorable.
However, the evolution of the industry towards a broader, direct-to-consumer market is likely to change the nature of the policies being settled. Adding to this change is the potential need of Covid-19 long haulers to settle their policies. Conning’s 16th annual life settlement review examines the key forces fueling continued growth within the life settlement industry.
“Covid-19 mortality was strongest among the elderly, which likely led to some life settlement policies maturing sooner than expected,” said Scott Hawkins, a Director, Insurance Research at Conning. “Over the next ten years, several key factors are in place that support a positive outlook for the life settlement market. From the investor side, the search for returns in this prolonged low interest rate environment continues to favor allocations to alternative asset classes. Life settlement investors, however, also need to be aware of the potential impact on cost of insurance charges caused by those same extremely low interest rates.”
“From the policyowner’s perspective there are drivers that favor continued growth in the life settlement market,” said Steve Webersen, Head of Insurance Research at Conning. “An increasing number of retiring baby boomers who need income for retirement and long-term care are likely to turn to life settlements. In addition, the COVID-19 long-haulers represent a new consumer segment as they consider life settlements as one solution to pay for the cost of their ongoing illnesses. The growth in mass market advertising and direct-to-consumer settlements will contribute to consumers looking at life settlements.”
The Conning study, “Life Settlements: The Growth Continues” 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 2021 - 2030. Further, the study analyzes the performance of insurers targeted by life settlements investors.
“Life Settlements: The Growth Continues” is available for purchase from Conning by calling (888) 707-1177 or by clicking here.
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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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