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Q1 - Vol. 3, No. 2, February 2006 Life Settlement News
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Conning Research & Consulting
Releases New Study Entitled:
In January 2006, Conning Research & Consulting, Inc. released its new study entitled: "Life Settlements - The Concept Catches On." The study surveys the current characteristics of the industry; discusses drivers and inhibitors to growth; reports on the life insurance industry's reaction; evaluates insurable interest issues; and provides an industry outlook.
In the study, Conning estimated that the size of the life settlement marketplace increased from $3.3 billion in policy face amount in 2004, to $5.5 billion in 2005. They noted that "life settlements remain an emerging market, one that has established some traction, but is clearly not yet mature."
Conning noted that "aggressive marketing of settlements, especially in the absence of full disclosure of all available options, is not likely to be in the best interests of either insureds or insurers."
"With the amount of capital available to this
market, life settlements are here to stay," stated Stephan Christiansen,
director of research at conning Research, in the company's January 12,
2006 press release. "While the settlements market still carries
some baggage from the earlier viaticals market from which it originated,
it is now clearly separate, with signs that it is maturing as it grows.
Life insurers need to anticipate the growing impact of life settlements
in their ongoing product development and pricing," said Christiansen. < Return to Newsletter Home Page
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