Download Life Risk News Volume 2, Issue 11, November 2023

A new report from asset manager, Conning, suggests that the outlook for growth in the life settlement market is generally positive. Life Settlements: Steady Growth Ahead is the 18th annual report that the Hartford, CT-based company has published covering the life settlement market. Scott Hawkins, Head of Insurance Research, and Roberta Lauria, AVP, Insurance Research at Conning offer their thoughts to Greg Winterton, with colour from Jonas Martenson, Founder and Sales Director Ress Capital and Alejandra Limones, Partner at Demeter Capital in Outlook for Growth in Life Settlement Market Positive. 

According to the World Health Organisation, there are approximately 1.3 billion global users of tobacco. Each year, eight million die – a number which includes more than one million passive smokers. Governments globally are trying to reduce the number of people smoking but they are dealing with the issue in different ways. Aaron Woolner spoke to Tracey Johnson, Underwriting and Claims Manager and Andrew Gethin, Managing Director at MorganAsh and Monideepa Chetia, Vice President of Underwriting at Longevity Services Incorporated to get their views in Debate Continues Over the Dangers of Vaping Versus Cigarette Smoking. 

UK industry group the Equity Release Council published its quarterly update recently, showing a market that has returned to growth for the first time in a year. Market activity remains suppressed when compared to recent years, however. Greg Winterton looks at whether the growth is sustainable in (Small) Green Shoots Appearing in UK Equity Release Market, featuring comments from David Burrowes, CEO at the Equity Release Council. 

Technology has brought about tremendous benefits and conveniences in today’s hyperconnected world. However, it has also given rise to a dark underbelly of cyber threats, which have only grown more sophisticated with the proliferation of artificial intelligence (AI). In this blog, we’ll explore how AI has become a double-edged sword, enhancing our capabilities and increasing the risks of cyber attacks. Karun Arathil, Senior Analyst, Insurance at Celent, explains more in The Rising Tide of Cyber Threats: How Artificial Intelligence Amplifies the Risk in Insurance Industry, a commentary piece this month. 

In September, the US Federal Reserve maintained interest rates at 5.5%, the first pause in what has been a rising rate environment since early 2022. Similarly, the Bank of England kept its interest rate at 5.25%, the first time since 2021 that the rate had paused. So, in October, we asked our readers, Have We Now Seen the Top of the Current Interest Rate Cycle? There was a rare lack of consensus this month. 

Our Q&A this month features Rob Haynie, Managing Director at life settlements broker, Life Insurance Settlements, Inc. Haynie offers his thoughts on activity in the secondary market this year and the outlook for 2024. 

Registered Investment Advisors (RIAs) wear three hats in the life settlement market, each of varying degrees of influence. Greg Winterton spoke to Jon Mendelsohn, CEO at Ashar Group, and Barry Flagg, CEO at Veralytic, to get their thoughts on where RIAs currently sit in the life settlements ecosystem and where they could use their influence going forward in RIAs Increasingly a Strategic Priority for Life Settlement Market.