Literature Review: Empirical Investigation of Life Settlements

If you are currently searching the web for current, non-bias, and compelling literature on the Life Settlements asset class then you must get your hands on Empirical Investigation of Life Settlements Secondary Market for Life Insurance Policies by Professor Narayan Y. Naik and Afomzo V Juanário, from the London Business School.

Compelling literature on this asset class is rare, although there are many research papers many only discuss positive/negative implications of life settlements, regulatory aspects, and market characteristics.

This paper, published June 2013, is the first to empirically examine settlement transactions by original policy owners in the life settlements market and provides a valuable insight in to internal rate of return (IRR) and the benefit that the secondary market contributes to both investors and the original policy owner.

In a study of 9,000 policies that were the subject of a life settlement between 2001 and 2011, policy owners received more than four times the cash surrender amount through a life settlement, according to a study recently concluded. Aside from the obvious benefits to consumers looking for options with regard to their unwanted or unneeded life insurance policies; Professor Naik’s research also found that the expected rate of return for investors are consistently and significantly higher than treasury yields.

This study proves to be not only a great literaturetool for the institutional investor but also an invaluable tool for the original policy holder.If you are keen to learn more about the opportunities available for an institutional investor in this asset class contact the following:


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Disclaimer: This information is intended for qualifying investors only and was correct at the time of preparation. It has been prepared to provide general information only and should not be considered as a “securities recommendation” or an “invitation to invest” in any jurisdiction. Potential investors should consider the relevance of this information to their particular circumstances. Before proceeding investors must obtain the prospectus and take their own legal and taxation advice. If you acquire or hold one of our products we will receive fees and other benefits as disclosed in the prospectus and relevant offering documents.


Tags: Literature, Asset Class, Life Settlements, Empirical Investigation, Professor Narayan Y. Naik

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