Life Insurance Settlement Association Announces South Carolina Treasurer Curtis Loftis as Keynote Speaker for the 19th Annual Spring Conference at the Venetian Resort in Las Vegas, May 29-31.

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Are life settlements good .. for consumer AND investors?

The Life Insurance Settlement Association is excited to announce that South Carolina Treasurer, Curtis Loftis, will deliver a keynote address at the upcoming LISA 19th Annual Spring Conference in Las Vegas later this month.

Treasurer Loftis will address some 200 attendees on the topic of “Alternative Investment Strategies by Public Pensions and other Public Funds” where he will discuss the increasing investments by public fiduciaries in alternative investments, as well as important elements for public fiduciaries to invest in this asset class.  Life settlements continue to attract a myriad of state and municipal pensions as part of these pensions’ increasing allocation for alternative investments.

Treasurer Loftis is also expected to share his thoughts and experiences on his efforts and experiences toward improving transparency and accountability for public funds.

“LISA is very pleased that Treasurer Loftis will join us for this important and exciting conference on life settlements,” said Darwin Bayston, President of LISA, adding: “We look forward to his remarks which we expect will enlighten a broad spectrum of investors about the benefits of life settlements as a sound alternative investment.”

The conference will also feature three other sessions important to increasing investment capital for investment in life settlements.  Professor Narayan Naik of the London Business School will present the results of his research on 9,000 settled policies in a presentation entitled Benefits to Consumers and Returns to Investors:  Empirical Evidence of $24 Billion of Settled Policies.  Andrew Plevin, Founding Principal and Co-CEO of BroadRiver Asset Management, a top-ranked firm managing longevity/mortality-linked investments for pension funds, will speak on Challenges of Raising Capital from the Perspective of a Pension Manager.  And, conferees will hear from a panel of experts discussing The Environment for Investment in Life Settlements in the UK and Europe is Improving.

LISA is holding the 19th Annual Spring Conference at the Venetian Resort and Casino, May 29-31.  For more information, contact 407.894.3797 or visit http://spring.lisainstitute.org.

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LISA’s Spring Conference in Vegas: New Message, New Audiences, New Opportunities: May 29-31 in Las Vegas

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Life settlements are evolving to meet the needs of a growing number of Americans.  In addition to the “traditional” life settlement market of million dollar policy owners, life settlements are expanding to reach consumers with smaller life policies.  Their needs are different and the messages are different.  But a more diversified market that will reach more consumers, meeting their diversified needs, is good for everyone.

Re-introducing Life Settlements to Producers, Financial Advisors, Estate Planners and Other Professional Advisors is one of the informative panels that will give conferees ideas on how to reintroduce life settlements to traditional sources with new information and opportunities for their clients, and will show how settlement brokers and providers can reach out to new audiences, such as long term care providers, elder care advisors and families about the benefits of life settlements.

New audiences, new messages, and new methods of reaching consumers, including consumer direct advertising and social media will also be explored at the conference.  Conference attendees will hear from Amy McIlwain, of Financial Social Media, as she speaks about Social Media:  Specific Takeaways that Get Results!

And, attendees will hear about how the media covers life settlements, in a panel entitled Media Coverage of the Life Settlement Industry.  Featuring senior executives from the two leading publications covering the secondary market for life insurance:  Bill Coffin, the Group Editorial Director of Editor National Underwriter and Michael Crosby, Chief Operating Officer of The Deal, owner of the Life Settlements Report, this panel will be a combination of presentations and interaction with the audience.  We’re excited about their participation.

Register here or call 407.894.3797. Only 13 Days Left.

With best regards,

Darwin Bayston,
President and CEO
Life Insurance Settlement Association

“Life Settlements: The Next Ten Years of Unlimited Opportunities”

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Life Settlements are Good for Consumers and Investors – Study by Professor Narayan Naik, London Business School

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Are life settlements good .. for consumer AND investors?

Are life settlements good .. for consumer AND investors?

Are life settlements good .. for consumer AND investors?  That’s been the selling point for the life settlement market for the past decade.  It’s largely been a story of belief without evidence for too long.   But now there’s substantial evidence that life settlements offer tremendous value to both consumers and investors.  A soon-to-be-published research study by Professor Narayan Naik of the London Business School presents powerful findings that validate the life settlement market’s value as a resource for consumers and an asset for investors. 

Professor Naik will deliver the first full presentation of his research and findings at the Life Insurance Settlement Association (LISA) 19th Annual Spring Life Settlement Conference that will take place May 29th-31st at the Venetian Las Vegas.

 The study concluded that American sellers of life insurance policies in the secondary market received more than 4 times the cash surrender values they would have received had they surrendered their policies to their respective life insurance companies. For investors, the research found that the average expected annual internal rate of return

(IRR) across the 11-year period of the study was 12.9%, and significantly higher than that in more recent years.

 “Being largely uncorrelated with other financial markets, the life settlement asset class would appear to be an interesting investment opportunity for those willing to include longevity risk in their portfolio and to commit capital for the medium term,” said Professor Naik.

 For more information about the presentation and the event, go to the LISA’s Event website:  http://spring.lisainstitute.org/.

 

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Sponsoring LISA….A Win-Win Situation For All!

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Life Insurance Settlement Association Sponsorship Win Win

Sponsorship creates the opportunity to build trust and establish rapport within the industry, generate new customers and also get exposure for your company! Whenever you sponsor the Life Insurance Settlement Association’s (LISA) events, you are truly supporting the development, integrity and reputation of the life settlement industry.
It’s a win-win. Sponsorship can have more impact than other forms of advertising as it increases awareness of the sponsor’s business through logo exposure and name recognition. Here are some other reasons for your business to consider sponsoring LISA.

1. Industry involvement and enhancing the quality of the conference

Whenever you sponsor a LISA event, you are, in essence, sending a message to the attendees that you are genuinely interested in providing support to the life settlement industry.  Your sponsorship allows LISA to bring experts and participants to the conference that would otherwise be unattainable due to budgetary resources.  Companies that show generosity for a good cause spark more human interest and appeal to everyone in attendance.

2. It is not always the same people that attend!

We always have new companies and individuals that have never before attended a LISA conference and since it takes at least three times for people to remember a new name, fact or a business, it is important to always have a constant presence. Remember, not only will you be in front of attendees but you may also have a chance to be recommended to their connections as well. Sponsorship builds brand recognition and the more visible your name or logo  is, the more people you’ll reach and will remember you.

3. Market awareness: Media, analysts & influencers

As industry credibility is an invaluable commodity, sponsoring is a must. There will undoubtedly be people who ask about your company and history with the Life Settlement industry. Sponsorship sparks a conversation and opens doors to new business opportunities.

4. Your support truly makes a difference

When your company supports LISA, you play a vital role in helping us advance our mission. Your support will truly make a positive impact around the world by helping us increase awareness to seniors who are in great need of financial resources.

To learn more about LISA’s sponsorship opportunities and how we might help grow your business, contact LISA’s Director of Education and Marketing, Wesley Costa, at

wcosta@lisa.org.

 

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Life Settlements: The Next Ten Years of Unlimited Opportunity

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Really?  Are you serious?  Given the contraction of the industry over the past few years, how can you say that?  From nearly any vantage point, the life settlement industry is in distress.  I get it.  The Life Insurance Settlement Association (LISA) has experienced the same kind of financial and personnel retraction as many of its members, and the industry. It has been no picnic in the park.  But isn’t it true that in times of great distresses you find the greatest opportunities?

Warren Buffet, the investment sage from Omaha once said, “In a chronically leaking boat, energy devoted to changing vessels is more productive than energy devoted to patching leaks.”  Haven’t we been patching a leaky boat for the past 3-4 years?  Is it time to change boats?  How do we do that?

Andre Gide, French author once said, “One does not discover new lands without consenting to lose sight of the shore for a very long time.”  Maybe it is time to lose sight of the shore from where we have been standing?  I know of no one who has progressed very far by staring into the rear view mirror while driving forward.  It is time to leave the shore, drive the boat forward and explore the possibilities.

In 2010 I penned an article, “Points of Inflection and the Re-emergence of the Life Settlement Industry.”  The relevance is not the specifics of what I said, but understanding that a point of inflection is a moment when the things that have brought us to where we are today are not the dominating factors that take us into the future.  After an inflection point a new set of circumstances dominates the path of progression. We are at a point of inflection.

These are the thoughts we considered while developing the theme (above) and program for the upcoming 19th Spring Conference in Las Vegas, May 29-31.  We began with the basic premise that two fundamental facts are clear.  First, there are millions of seniors who are in great need of financial resources during retirement, especially given the unknown high costs of long term care.  We also know that 90% plus of those seniors are unaware their life insurance policy may have value beyond its cash surrender value.  The availability of policies for possible settlement by the secondary market is not in question.  What is in question is how we create an awareness of a life settlement option among those millions.

Second, we fundamentally accept that life settlements are an attractive asset class for long term institutional investors.  It is the challenge of the industry to find out from those institutions what it is they need to make the decision to invest in life settlements.  Is it the endorsement by consultants who are the gatekeepers?  Is it the packaging?  Is it how the transaction is completed?  Is it the perceived size of the industry?  We need a serious review of these and other questions.

LISA’s Spring Conference, May 29-31, will explore, discuss and debate issues about the future of the secondary market, growing the industry and capturing the unlimited opportunities.  Go to LISA’s event website here for information about topics and speakers. We will add speakers as they are confirmed.  The conference begins with a non-traditional topic about a riveting story of how one man transformed a life-threatening tragedy into the unbelievable.  His message of “realign your mindset – transform your results” will be a game changer.  The conference will also address the important topic of transforming our industry through social media.  If you have not yet embraced social media, it is time.  These and other life settlement topics are meant to consider changing vessels and leave the shores for new undiscovered opportunities.  Join us in Las Vegas.  It will be a stimulating and valuable experience.

See you there.

 

Dawin M. Bayston, CFA

President and CEO

The Life Insurance Settlement Association

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LISA Testifies at NCOIL About Life Companies’ Improper and Illegal Conduct Against Life Settlements

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LISA President, Darwin Bayston, Director of Legislative & Regulatory Affairs, Michael Kreiter, and Coventry’s Michael Freedman together represented LISA and its members at the Fall Meeting of the National Conference of Insurance Legislators (NCOIL) last week in Point Clear, Alabama.  LISA was invited to speak to legislators from across the nation on the life insurers’ anti-consumer and anti-competitive conduct against life settlements.

LISA Testifies at NCOIL About Life Companies’ Improper and Illegal Conduct Against Life Settlements

LISA represented the market well by presenting legislators with specific facts that demonstrate how insurers are interfering with consumers’ access to information and assistance with life settlements and how some companies are impairing life settlement transactions, including violations of law.  LISA’s detailed presentation specifically addressed the following the anti-consumer activities by life insurers:

  • Failure of life companies to pay interest on death claims despite statutory and contractual obligations;
  • Unauthorized changes to ownership data by insurers;
  • Insurers asking illegal questions about life settlements on life insurance applications;
  • Threats to producers and gagging producers related to advising and assisting policyowners with life settlements, including term conversions;
  • Obstruction by insurers in obtaining verification of coverage and other information related to life settlements or life settled policies.

LISA’s presentation to NCOIL is available HERE.

Before LISA spoke, the American Council of Life Insurers (ACLI) submitted a letter on these issues and testified by summarizing that letter.  Neither the letter nor testimony addressed the specific issues raised by LISA, but rather deflected any criticism of the life companies’ conduct.  The letter accused the life settlement industry of not being willing to engage in discussions with the ACLI and asserted that the industry’s presentation of issues was merely an attempt to “discredit life insurers.”  In the ACLI’s testimony, however, they did reiterate an interest in coming together to address the issues in a manner that would recognize the responsibilities each has to its consumer and client constituents.  The ACLI’s letter to NCOIL is attached HERE.

LISA’s presentation was well received.  Several legislators, and at least one regulator in attendance, were very interested to know more about the problem of insurers not paying required interest due on death claims.  As many of you know, most of the largest life companies have paid out billions of dollars in penalties and claims in just the past few months to resolve allegations that carriers were selectively using the Social Security Administration’s Death Master File database to end benefits on annuitants but did not use it to find deceased policyholders or their beneficiaries.  There have also been recent efforts by regulators to investigate small and mid-sized companies for unpaid benefits.  The unpaid interest on death benefits could reopen the entire issue and could be worth billions of dollars to beneficiaries.

LISA leadership will once again reach out to the ACLI and its members to discuss these and other issues of mutual interest and concern.  There are significant benefits to the life insurance and life settlement industries working together towards an environment where consumers’ life insurance needs are met with trust and confidence, and includes an open, free and competitive market for them to exercise options available when policies no longer are needed, wanted or affordable.

While we do not particularly relish continued battles with the life industry, LISA will remain active, vocal and vigilant in protecting our market and the consumers we serve.  The state laws that we worked so hard to enact are there to protect consumers and our market and we will now seek to have those laws enforced against life insurers who violate them.

In addition to providing testimony such as we did at NCOIL, we will be providing regulators and legislators with more detailed information on several of the issues raised in the coming weeks.  Also LISA will be filing formal complaints with regulators against insurers – a course of action the ACLI specifically encouraged in their testimony – over such issues as unpaid interest, illegal questions on applications, interfering with term conversions and other illegal conduct by insurers.

We appreciate the continued support of our members.  Feel free to post your feedback, comments and ideas here.

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LISA CONFERENCES ARE THE GOLD STANDARD OF THE INDUSTRY

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Why Attend the 18th Annual Fall LISA Conference ?

Why Attend the 18th Annual Fall LISA Conference ?

LISA conferences are the industry standard.  For 18 years, LISA has represented every part of the industry at its Spring and Fall Conferences.  Early meetings were mere discussion groups about the how a secondary market in life insurance might roll out.  Today, the conferences cover every aspect of the latest developments across the entire industry.  If new developments have not been introduced, discussed and debated at a LISA conference, they likely don’t exist.

Don’t miss this conference.  Again, we are breaking new territory.  We will explore the impact of the Baby Boom generation on all aspects of society and the economy.  We will address the 21st century advances in the use of digital marketing and social media outreach to create greater consumer awareness of the life settlement option.  At the other end of the spectrum the conference will discuss investment capital – both the status of current capital and what the industry needs to do to attract new long-term capital.  As is a part of every conference legislative/regulatory/legal updates will be presented. We will also address strategies for improving portfolio returns.

Our speakers are simply among the best in their respective areas of expertise.  Both inside the industry and outside, LISA has delivered the most expert, experienced and knowledgeable speakers involved in the business.  This year is no different.  I urge you to go to our event website, and review the program and line-up of presenters.  They will make you want to be in their presence.

This 18th Annual Fall conference is being held at the attractive Lowes Portofino Bay Hotel adjacent to Universal Orlando is one of the most inviting venues available.  Orlando is very pleasant in November.  For those who want to come early or extend their stay, Universal and Disney attractions are at your fingertips.

There is still time and you won’t want to miss this conference.  See you in Orlando.

Register Today

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Why Attend the 18th Annual Fall LISA Conference ?

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LISA will host its 18th Annual Fall Conference Nov 7-9, 2012 in Orlando, FL at the Portofino Bay Hotel at Universal Orlando. On Nov 7, LISA’s Annual Compliance Conference will be held at the same location.

Why Attend the 18th Annual Fall LISA Conference ?

Why Attend the 18th Annual Fall LISA Conference ?

Why come to LISA’s fall conference? In fact, are any conferences worth the time and expense to attend in person? While all sponsors promote their conference as the absolute best, with the most “leading edge” content and speakers, it is a fact many programs regurgitate the same concepts and information, merely presented by different speakers. That does not mean conferences are void of worthy topics, nor of really good speakers.

Conferences are events where new ideas and concepts are presented. If you are able to leave any conference with one significant “aha” moment that you can implement, it will have been worth the time and expense to attend. There is at least one other reason for attending conferences in person. The opportunity to mingle, exchange ideas and network with other attendees can be valuable. Networking is sometimes as valuable and rewarding as the conference program itself.

LISA has sponsored a Spring and Fall conference for 18 years. They have become a tradition. Over time the conferences have changed. In the early years they were more “discussion groups”. For many years the topics and speakers focused on the “transaction” aspects of life settlements. Attendance was dominated by brokers and providers networking among themselves, with some mix of service providers. From 2008 – 2010 the investor issues, capital market meltdown, and mortality and life expectancy matters became dominant themes and topics.

Over the last two years, a broader focus to include issues of increasing consumer awareness, increasing policy submissions and increasing investment capital have become prominent topics for LISA’s conferences. Expanding the scope of LISA’s activities to include the spectrum from consumer to capital has become front and center.

So, why attend this year’s LISA Fall Conference? Simply, there are several “aha” opportunities. The conference will be the most valuable program across many fronts that you will ever have attended in the life settlement industry. The program spans the landscape from exploring the senior market of policy availability to marketing in the 21st Century of digital and social network environment to the status of increasing capital from institutional investors. In addition, as is tradition, you will be updated on the implications of legislative and regulatory issues and the impact of recent court cases on the industry. The speakers are an outstanding group of professionals in their respective fields. Don’t miss out – and by the way, Orlando is inviting in November.

Click here to see the entire program. And register today!! If you have difficulty registering online, call 407 894 3797.

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INSURABLE INTEREST MATTERS

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Insurable Interest Matters

Insurable Interest Matters

The birth of the concept of insurable interest dates all the way back to the Life Assurance Act (“Act”) of 1774.  The Act, passed by the Parliament of Great Britain, was designed to prevent the abuse of the life insurance system.  Prior to the passage of the Act, it was legal for any person to take out a life insurance policy on another person, despite not having any interest in that person’s well-being or any other legitimate interest in that person’s life.  The passage of the Act made such practices going forward illegal.

Since that time, insurable interest statutes have evolved so that in most states in the U.S., procuring a life insurance policy without the requisite insurable interest could result in the eventual voidance of that policy.  This has been well-established law across the United States for decades.

Litigation brought by life insurance carriers against participants in the secondary market that is based on insurable interest statutes is prevalent.  Insurance carriers have taken an aggressive approach to contest any life insurance policy that has been subsequently settled in the life settlements market that even has the slightest appearance of impropriety within the life insurance application.

It is essential that a secondary market purchaser make sure that the insurer does not have a basis to challenge the policy on the grounds that the policy was not supported by a genuine insurable interest at the point of issuance.  At this year’s Compliance Conference, the Life Insurance Settlement Association will (“LISA”) discuss practical ways for purchasers to verify whether the policy they intend to buy is sound.

In fact, LISA will soon introduce a series of Insurable Interest Continuing Legal Education courses that will focus on insurable interest matters in all 50 states, the District of Columbia and all U.S. territories.

In addition to insurable interest issues, our experts will discuss the recent changes to the Social Security Administration’s Death Master File and the new trend of retained death benefit life settlement transactions.

It is undisputed that the LISA Compliance Conference is the ONLY conference in the secondary market for life insurance that specifically addresses issues pertinent to life settlement compliance personnel and attorneys.  Further, it is the ONLY conference in the industry to offer CLE credit for attending the conference.

I hope to see you there!

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Baby Boomers Will Drive the Life Settlement Industry Over the Next 15 Years!

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More than 10,000 baby boomers retire each DAY and will do so for the next 20 years. According to Pew Research, many will work past age 65 because of the lack of savings and investments.  Transamerica Retirement Studies reports that 54% workers in their 60’s do not have enough financial wealth to sustain themselves for the rest of their lives.  Further, the Employee Benefit Research Institute indicates that 60% of workers have less than $25,000 of savings and investments.

More than 10,000 baby boomers retire each DAY and will do so for the next 20 years.

For a great many baby boomers, their life insurance policy will be a safety net in retirement.  The dilemma is that most seniors are not aware that their life insurance policy may have a value BEFORE they die beyond the cash value indicated on the annual statement.  They assume if their policy is no longer needed or wanted, or that they cannot afford to continuing paying premiums, the only option is to lapse or surrender the policy back to the issuing life company.  However, there are options available to policyholders other than lapsing or surrendering the policy and we need to make every senior and baby boomer aware of those options.

LISA’s own, Daniel Harris wrote about these options in a LISA blog on Sept 6, 2012, while Wm. Scott Page of the Lifeline Program authored an excellent article describing consumers’ options  in Huff Post Money on October 5, 2012 (link at bottom).  One of the most important options is to sell the policy in the secondary market, otherwise known as a life settlement.  According to a 2010 Report by the U.S. Government Accountability Office, life insurance policies sold as a life settlement received on average seven (7) times more than the policy’s cash surrender value, based on data they analyzed.

Boomers have serious financial needs to live a reasonable lifestyle in retirement.  One of the most important assets they have may be their life insurance policy.  The life settlement industry exists for the purpose of providing a secondary market where unneeded and/or unwanted life policies may be liquefied for the policyholder.  As an association and industry, we need to focus significant efforts on educating consumers on the benefits of considering all the options available for their life insurance policies.

The Association’s 18th Annual Fall Conference will be held November 8-9, 2012 in Orlando.  A nationally-known speaker from Age Wave will address attendees about the aging population and we will hear from a well-known speaker about the implications and impact of the aging U.S. population of Baby Boomers.  Join us in Orlando.  Visit www.lisa.org  for more information on life settlements and LISA’s upcoming conference.

Wm Scott Page article link: http://www.huffingtonpost.com/wm-scott-page/the-life-insurance-indust_b_1937246.html

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