2018: Life Settlements - Continued Growth, Positive Outlook

Price : $1,750.00

This study provides Conning’s market review of the life settlements market in 2017 and our forecast of the markets’ development through 2027. It explores the key issues facing investors, including the cost of insurance increases on universal life policies, a key concern for many life settlements investors. Finally, the study reviews the performance of those insurers targeted by the life settlements industry.


1. Introduction

2. Executive Summary

3. Life Settlement Market Review  

  • Life Settlement Market Review

  • Life Settlements Calculators and Videos

  • Summary

  • 4. Life Settlement Forecast Drivers  

  • Economic and Capital Drivers

  • Consumer Drivers

  • Care Funding Sources

  • Industry Drivers

  • Tertiary Market Drivers

  • Summary

5. Life Settlement Market Forecast 

  • Conning’s Life Settlement Market Forecast

  • Conning Tertiary Market Forecast

  • Summary

6. Life Settlement Insurer Performance 

  • Insurers with Life Settled Policies

  • Portfolio Performance and Net Operating Gain

  • Summary

7. Cost of Insurance Increase 

  • COI Increases

  • COI Litigation

  • COI Regulation

  • Reasons for COI Increases

  • Summary

Appendix—Life Settlement Market Structure and Risks



The second consecutive year of growth in the amount of face value settled may indicate a renewed interest in life settlements by investors.

This interest reflects a combination of a prolonged low interest rate environment, continued investment allocations to non correlating alternative asset classes, and the stability of the life settlement landscape. The stability of the life settlement landscape reflects the investor awareness of the investment risks associated with the asset class, a more favorable tax environment, and demographics trends creating a growing supply of policies that could be settled.

The potential cloud on the horizon are COI (cost of insurance) increases on UL (universal life) policies. These increases could raise premiums for settled policies and eventually reduce investor returns. Some of those increases have been challenged in court. That said, insurers remain under some degree of pressure created by lower investment returns on their assets. As a result, this study continues its analysis of the issues driving COI increases. We also continue our analysis of the life insurance companies whose policies life settlement investors purchased. This analysis provides useful insight for investors on the financial performance of the companies that issued the policies in their portfolios and the possible impact life settlements may have on those companies.

This study reviews this diverse secondary market for insurance products.

  • We review the current market and provide our forecast for 2018-2027.

  • We analyze the performance of those insurers targeted by life settlement investors and compare them to the broader life industry.

  • We analyze the drivers for recent COI increases.

  • As always, for new investors curious about life settlements, we provide an introductory primer of how life settlements operate.