Tel: +44(0)1244 317999
Signup to receive updates
LIFE SETTLEMENTS PROVIDER SURVEY BY SL INVESTMENT MANAGEMENT POINTS TO UPBEAT MOOD FOR FUTURE OF SECONDARY MARKET IN 2013 AND BEYOND
A recent qualitative survey, conducted by secondary life asset
manager: SL Investment Management (SL), reveals a healthy outlook
for the asset class in the coming years.
SL interviewed a number of secondary-market providers to gain
detailed insight into the future of life settlements, looking at
issues such as perceived returns, the attitude of the life
companies, the perception of US consumers and the effect of
increasing life expectancy.
Key findings highlighted:-
growth; 77 per cent of respondents believe that the
life settlements market will grow steadily during 2013.
returns; 67 per cent of respondents predict between
14 - 18 per cent returns, while a further 11 per cent predict
returns of over 18 per cent.
• Improved cooperation from the life
offices; 67 per cent of respondents believe that
relationships will continue to improve between the life companies
and the secondary market but that it will take time. However an
upbeat 33 per cent say that there are already signs of improved
markets still right fit for life settlements; 41 per
cent predict that Institutional Investment Funds will continue to
be the leading buyers of life settlement policies in 2013 with
Private Equity groups following (33 per cent).
• Education process
required among US citizens regarding existence of secondary
market; 67 per cent say that there is very little
awareness of the secondary market among the US public. A
combined 88 per cent say provision for consumers is 'poor' or
Commenting on the research, Paul Sands, SL's Chief Executive
Officer, says: "Taking a macro approach, the findings are
very positive. The market is maturing and industry
participants' attitude to the near-sight future of life settlements
demonstrates an acceptance that simply wasn't there a few years
"The lack of awareness among US citizens represents an untapped
supply of high quality policies which, once released into the
market, will create long term benefits for the secondary market
place as a whole; the potential growth in this industry is plain
for all to see."