Download Life Risk News Volume 3, Issue 8, August 2024

The European Life Settlement Association (ELSA, publisher of Life Risk News) has published its latest Licensed Provider Matrix, which documents the states of the US that various life settlement providers are licensed to do business in. Greg Winterton spoke to James W. Maxson, Partner at EM3 Law and Bryan Nicholson, Executive Director at the Life Insurance Settlement Association, to get their thoughts on the provider space in Consistent Licensed Provider Landscape Indicative of Maturation of Life Settlement Industry. 

The Longevity Index for England (LIFE Index), developed by a team led by Professor Andrew Cairns of Herriot Watt University, uses modern data science techniques – the random forest algorithm – augmented by machine learning to analyse life expectancy at the neighbourhood level. Aaron Woolner spoke to Prof. Cairns to learn more about the index and the approach in Using Local Knowledge To Fine Tune Life Expectancy Analysis. 

The incoming Labour government in the UK was quick to make clear its commitment to the momentum sparked by last year’s Mansion House pension reforms but how far it will decide to take the Pensions Review, in terms of UK defined benefit schemes, will depend on its appetite for reform. Samantha Downes spoke to Paul Kitson, Partner at EY, Steve Webb, Partner at LCP, and Calum Cooper, Head of Pensions Policy Innovation at Hymans Robertson to get their thoughts on the topic in Pension Review Has UK Bulk Purchase Annuity Market in Its Sights. 

Summer tends to be quieter for many parts of the alternative investment industry as people take their foot off the gas a little bit to enjoy the nicer weather and head out on holiday. But this year, two categories within the broader longevity and mortality risk markets did not get the memo. Greg Winterton spoke to Dan Knipe, Chief Investment Officer at Kilter Finance and Rob Haynie, Managing Director at Life Insurance Settlements who provided their views as to the outlook for M&A and management buyout deals in the life risk markets in Life Risk Market Deal Bonanza a Coincidence or a Sign of Things To Come? 

The advent of Electronic Health Records is transforming the landscape of life settlement underwriting but there are some challenges in utilizing them in an underwriting context Roger Tafoya, President & Chief Underwriter at Predictive Resources, explains more in Using Electronic Health Records in Life Settlement Underwriting, a guest article this month. 

Activity in the smaller scheme corner of the UK’s pension risk transfer market has held up in the past 18 months, despite initial concerns of crowding out. Greg Winterton spoke to Adam Davis, Managing Director at K3 Advisory, to get his thoughts on the drivers of activity in this part of the country’s booming bulk purchase annuity space for this month’s Q&A. 

The evaluation of mortality risk stands as a cornerstone in determining the value and viability of life settlement investment portfolios and among the myriad of factors influencing mortality, tobacco and other forms of nicotine have implications reaching far beyond the confines of specific health-related issues. Pushparani Mudaliyar, Medical Underwriter at CG Analysts, provides some useful insight on the subject in All-Cause Mortality of Nicotine Use in the Life Settlement Industry, our second article this month. 

Despite Germany’s total pension assets touching €730bn, activity in the country’s pension risk transfer market has been muted due to an insurance regulatory framework which caps the guarantees carriers can offer. Aaron Woolner spoke to Magnus Schmagold, Partner at Funding Solutions, to learn more about the market and its outlook for future growth in Longevity Swaps on the Table in Nascent German Pension Risk Transfer Market.