SOURCE: Life Insurance Settlement Association
ORLANDO, FL--(Marketwire - Mar 15, 2013) - The Life Insurance Settlement Association (LISA) held its 3rd Annual Institutional Investor Life Settlement Conference in New York on March 11, 2013, and with record attendance, the conference was a resounding success. Investors and other secondary market attendees learned about new trends and opportunities in life settlements, ranging from new initiatives related to policy origination, the growth of pension fund investments in life settlements, as well as recent data and information on legislation, regulation and legal developments affecting the secondary market for life insurance.
The conference was led by LISA Chairman Alan Buerger, CEO of Coventry First, whose keynote address praised the industry for achieving an environment where life settlements have become recognized for the high value they offer consumers and investors. He challenged the industry to continue to meet the needs of the massive population of Baby Boomers and expand our market to include those consumers with small face value policies. Buerger emphasized that this period of growth will feature life settlements as a socially responsible investment.
Other speakers included Gary Brown and Les Logsdon of CMG Life Services, who presented attendees with a compelling rationale for institutional investors to consider investing in life settlements as an asset class, including transparency of secondary market transactions and the attractive returns of large portfolios over time. A second investor panel discussed the growing acceptance of life settlements as an asset class by institutional investors, particularly state and municipal pension funds, foundations and endowments.
An update of the state of laws and regulations of the secondary market was given. Conference attendees learned that life settlements are transacted in a well-regulated environment, with laws regulating life settlements in force in 42 states, covering over 90 percent of the US population. A review of some 400-500 lawsuits since the mid 2000's revealed that neither life settlements nor life settlement companies have been the subject of STOLI litigation by insurers, reassuring investors that portfolios of policies that have been the subject of regulated life settlements have had negligible litigation risks.
A major topic at the conference was how life settlements are being used by a growing number of Americans to help pay for long-term care, including as a diversion for those who are forced to abandon their policies to qualify for Medicaid. Life settlements provide many seniors with the ability to secure long-term care without having to access public assistance, thus saving states hundreds of millions, if not billions, of dollars annually. Several states are currently considering legislation to formalize the use of life settlement transactions for Medicaid purposes.
"This was LISA's most successful institutional investor conference," said Darwin Bayston, President of LISA. "It provided a continuum of important topics to build on for future conferences."
LISA is sponsoring its 19th Annual Spring Life Settlement Conference in Las Vegas, May 29-31, 2013. Register before March 31 for the Early Bird Special price of $750 for LISA members, $950 for non-LISA members. For more information, visit LISA's Upcoming Events page at www.lisa.org.