Inside the Life Settlement Industry

Abstract

The life settlement industry offers a combination of challenges and opportunities for domestic and international investors in an uncorrelated asset class with promising returns. Although the life settlement supply chain is characterized by a variety of interdependent players including, financial planners, life settlement brokers, actuarial experts, verification agents, escrow agents and others, the provider's role is the point at which the true economic value of the consumer's life insurance policy is established through pricing and competitive bidding. New providers entering the marketplace can expect to face a variety of operational challenges from sourcing employees to sourcing product flow. This article explains the integral role of the provider through which institutional capital enters the marketplace, examines the challenges of attracting capital, and discusses the administrative issues involved in setting up shop.