A Market Takes Off
Conning has recently released its aptly titled fourteenth annual life settlement report, “A Market Takes Off”. Conning explores the expansion of the life settlement industry relative to carrier performance, cost-of-insurance drivers, a surge in retiring baby boomers, and growing interest from investors.
According to Conning, the life settlement market could see double-digit expansion over the next ten years. Conning forecasts the life settlement market to reach $212 billion in cumulative life settlement transactions by 2028 supported by a continued healthy supply of investors, a stable regulatory environment and a large pool of policies to choose from. In addition, the tertiary market is expected to continue thriving, allowing the settlement market to maintain stable year-over-year growth.
Abacus Life has become a key factor in this growth and is positioned to continue contributing to the already impressive market growth in the coming years by developing relationships with some of the largest brokers, insurance producing groups and independent Broker-Dealers in the industry. Not only is Abacus well-capitalized to purchase policies, but the firm has also nearly tripled its staff since 2017 to help accommodate the substantially increased interest in the space.
“Several life settlement funds announced the launch of new funds or the successful closing of funds which reflects the continued interest of capital in the asset class,” reported Scott Hawkins, Director of Insurance Research at Conning. “Looking beyond 2019, key drivers are favorable for continued growth in the life settlement market. Life settlements remain an appealing alternative asset class to investors seeking higher potential returns, relative to the current low-interest-rate environment. In addition, this year’s study examines the positive impact wider consumer marketing could have on growth.”