An Update on the Life Settlement Industry: Recent Challenges and Tasks Ahead

Abstract

Now more than 10 years into its life cycle, the life settlement industry is facing challenges whose outcomes will determine its very existence. This industry experienced robust and even exponential growth during the first decade of the new millennium. Its vitality and prospects for future growth are in question today. That said, the underlying fundamentals of this industry from an investor’s perspective remain economically sound and compelling. This article reviews the current state of the life settlement industry and explores the ongoing economic impact resulting from the financial crisis, regulatory developments, and industry dynamics. It also explores various future scenarios and potential outcomes as the industry continues to evolve.

TOPICS: Legal and regulatory issues for structured finance, information providers/credit ratings