2022: Life Settlements - Growing Through Turbulence
The economy emerged in 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 is the outlook for continued life settlement growth?
Table of Contents:
Introduction
Executive Summary
Life Settlement Market Review
- Life Settlement Market Review
Life Settlement Forecast Drivers
- Economic and Capital Drivers
- Consumer Drivers
- Insurance Industry Drivers
- Life Settlement Industry Drivers
- Tertiary Market Drivers
- Summary
Life Settlement Market Forecast
- Conning’s Life Settlement Market Forecast
- Conning Tertiary Market Forecast
- Summary
Life Settlement Insurer Performance
- Insurers with Life Settled Policies Performance Review
- Portfolio Performance and Net Operating Gain
- Life Insurer Concerns About the Impact of Life Settlements
- Summary
Appendix - Life Settlement Market Structure and Risks
Introduction
Conning’s analysis of the factors driving life settlement growth are mostly positive. Consumers are likely to seek additional sources of income to offset the economic pressures. Investor demand for alternative assets is forecast to remain strong. Both factors are positive for life settlement growth. 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. Conning’s 17th annual life settlement review examines the key forces fueling continued growth within the life settlement industry.
This study reviews this diverse secondary market for insurance products.
- We review Covid-19’s impact on the life settlement market
- We identify the key drivers behind the growth in our forecast for 2022-2031
- We analyze the performance of those insurers targeted by life settlement investors, compared to the broader life industry
- As always, for new investors curious about life settlements, we provide an introductory primer on how life settlements operate