Life Settlements: Steady Growth, Growing Potential


Michael Warner
Conning, Inc.

Conning—Life Settlements Growth Trajectory Challenged by Insurer Cost of Insurance Increases

(Hartford, CT) October 11, 2017—Overall market conditions point to growing demand for life settlements, but continued insurer increases in cost of insurance on existing policies presents a challenge to growth, according to a new study by Conning.

“Life settlements continue to present an appealing alternative asset class to investors seeking uncorrelated and above average returns in what has been a prolonged low interest rate environment,” said Scott Hawkins, a Director, Insurance Research at Conning. “The regulatory landscape for life settlements remains relatively stable, states are making efforts to increase awareness of life settlements among retirees, and the increasing number of retiring Baby Boomers should increase demand to monetize now unneeded life insurance policies.  Most market conditions point towards growth in new life settlements.”

The Conning study, “Life Settlements: Steady Growth, Growing Potential” reviews the current market for life settlements and presents our forecast for 2017 - 2026. Further, the study analyzes the performance of insurers targeted by life settlements investors, and analyzes drivers and results of cost of insurance increases by certain insurers over the past few years.

“Countering the overall market conditions for supply and demand for life settlements, insurer actions are creating uncertainty among investors,” said Steve Webersen, Head of Insurance Research at Conning. “Cost of insurance increases from a number of insurers have pressured life settlements returns, and have resulted in lawsuits against the insurers by policyholders. Although key investor participants continue to announce plans for growth, these unanticipated increases in cost of insurance, along with rising interest rates increasing the cost of investor leverage, could pressure life settlements market growth in the future.”

Life Settlements: Steady Growth, Growing Potential” is available for purchase from Conning by calling (888) 707-1177 or by visiting

Conning ( is a leading global investment management firm with more than $115 billion in global assets under management as of June 30, 2017.* With a long history of serving the insurance industry, Conning supports institutional investors, including pension plans, with investment solutions and asset management offerings, award-winning risk modeling software, and industry research. Founded in 1912, Conning has offices in Boston, Cologne, Hartford, Hong Kong, London, New York, and Tokyo.

*As of June 30, 2017, represents the combined global assets under management for the affiliated firms under Conning Holdings Limited, and Cathay Securities Investment Trust Co., Ltd. ("SITE"). SITE reports internally into Conning Asia Pacific Limited, but is a separate legal entity under Cathay Financial Holding Co., Ltd. which is the ultimate controlling parent of all Conning entities.