Cal Broker contributor Lisa Rehburg of Rehburg Life Insurance Settlements recentlyattended the Institutional Investor Conference organized by the Life Insurance Settlements Association (LISA). Rehburg says the bottomline for life settlements is that the market is great for investors, which means it is great for clients. A few of her keytakeaways from the conference:
Investor Perspective:
- The market is good with projected growth in the next 3 – 7 years, and thefuture is
- Coming out of the COVID-19 crisis, capital influx into the market will
- According to new research commissioned by Managing Partners Group(MPG), more than half (51%) of institutional investors globally plan toreduce their exposure to bonds this year. The research shows that, of those planning to switch, 52% plan to redirect their investments into life settlements.
Client Perspective:
- Clients put the sale of their life insurance policies on hold during theCOVID-19 virus spikes, creating pent up transaction That changedduring the 2nd half of 2020 and continues to increase in 2021.
- The face value of policies sold was down in 2020 2019, meaning investors are buying lower face value policies.
- Increased consumer demand for new life insurance policies – up over 7% in 2020 v. 2019 – results in an increased future lifesettlement pool.