2017: Life Settlements - Steady Growth, Growing Potential



Price : $1,750.00



This study provides Conning’s review of the life settlements market and associated transactions in 2016 and our forecast of the markets’ development through 2026. It explores the key issues facing investors, including the factors driving the cost of insurance increases on universal life policies. Finally, the study reviews the performance of those insurers targeted by the life settlements industry and compares them to the broader life industry.


1.Introduction

2.Executive Summary

3.Life Settlement Market Review and Forecast 

  • Life Settlement Market Review
  • Conning’s Life Settlement Market Forecast
  • Conning Tertiary Market Forecast
  • Summary

4.Performance Analysis of Insurers Focused on by Life Settlement Investors 

  • Insurers with Life Settled Policies
  • Portfolio Performance and Net Operating Gain

5.Cost of Insurance Increase 

  • COI Increases
  • Reasons for COI Increases 

6.Additional Life Settlement Markets 

  • German Secondary Markets for Insurance Products
  • Life Settlements for Long-Term Care Funding 

Appendix—Life Settlement Market Structure and Risks 


Introduction

Life settlements continue to attract steady investor interest. Demographics trends indicate the potential for a growing supply of policies that could be settled. Our 2017 edition continues our life settlement market review and forecast.

In 2016 and into 2017, some insurers have announced additional COI (cost of insurance) increases on universal life policies. These COI increases could significantly affect some investors’ return on their life settlement portfolios. Because of that impact, this study provides an analysis of the issues driving COI increases.

The eventual return for life settlement investors is based on the financial stability and performance of the insurance companies issuing the policies. This study analyzes those 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 2017-2026.
  • 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 the COI increases by some insurers in 2015 and 2016.
  • We review the German and Medicaid settlement market.
  • Finally, for new investors curious about life settlements, we provide an introductory primer of how life settlements operate.