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Completed Papers

Completed Papers


The Emerging Alternative Investment “Life Insurance Assets” written by Edward S. Adams

May 1, 2013


This Paper explores the operation, advantages and potential disadvantages of life insurance asset
investing. In doing so, the Paper first surveys differing categories of investments that are available to investors
and concludes that life insurance assets should be included as an alternative investment. The Paper then
considers how life insurance functions and how the life insurance policy may be sold as personal property. Third,
the Paper provides a brief history of the life insurance secondary market and who are likely candidates for life
insurance settlements. Finally, the Paper concludes by advocating why life insurance assets may offer a viable
alternative investment for an investor to diversify his or her portfolio as part of a holistic investment approach.

The Emerging Alternative Investment – Life Insurance Assets.

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Part III of Three Part Series: Alternative Risk Transfer – The Convergence of the Insurance and Capital Markets

August 11, 2010


Insurance Studies Institute (ISI) is pleased to release Part III of a three part series, “Alternative Risk Transfer: The Convergence of the Insurance and Capital Markets.”

Part III, entitled “Utilization of Life Insurance-Linked Securities,” investigates how individuals, financial entities and government agencies manage longevity/mortality risks, and how the capital markets  -  via life insurance-linked securities –  have helped to revolutionize risk management techniques.

Part I of this series provided a macro-level analysis of the insurance-linked security asset class, and Part II took an in-depth look at the non-life insurance-linked security sector.  Together, the three parts of this research series examine how the coalescence of the insurance and capital markets has produced an array of innovative risk management tools that allow for the hedging of risks that were previously thought to be uninsurable. 

Part III of three part series: Alternative Risk Transfer, The Convergence of the Insurance and Capital Markets

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Evolution of Life Expectancies in the Life Insurance Secondary Market…Current Trends and New Developments

August 4, 2010


With the gracious support and assistance of many Life Expectancy (LE) Underwriting professionals, the Insurance Studies Institute (ISI) has compiled a history and analysis of the dynamic LE industry. “Evolution of Life Expectancies in the Life Insurance Secondary Market…Current Trends and New Developments,” is ISI’s sixth volume of the Life Insurance Settlement Series.  This publication provides readers with an in-depth look at the challenges and risks inherent to this business, the different methodologies employed by various providers, the critical nature and utilization of mortality tables, and the developments on the horizon that may increase the accuracy of LE evaluations via more sensitive and responsive systems.

Life Insurance Settlement Series Volume VI: Evolution of Life Expectancies in the Life Insurance Secondary Market

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Part II of Three Part Series: Alternative Risk Transfer – The Convergence of the Insurance and Capital Markets

July 28, 2010


Insurance Studies Institute is pleased to release Part II of the three part series, “Alternative Risk Transfer: The Convergence of the Insurance and Capital Markets.”  Part II, entitled “Non-Life Utilization of Insurance-Linked Securities,” provides an overview of the non-life insurance-linked security sector, from the first securities issued – catastrophe bonds – to derivatives and synthetic securities.  This paper charts the developments in this sector that have created a wide avenue of risk management techniques, allowing for the hedging of risks that were previously thought to be uninsurable.

Part I of this series provided an overview of the evolution of insurance-linked securities, and Part III, to be released in August 2010, will closely examine developments in the market for life insurance-linked securities.

Part II of three part series: Alternative Risk Transfer, The Convergence of the Insurance and Capital Markets

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Part I of Three Part Series: Alternative Risk Transfer – The Convergence of the Insurance and Capital Markets

July 20, 2010


Insurance Studies Institute is pleased to release Part I of the three part series, “Alternative Risk Transfer: The Convergence of the Insurance and Capital Markets.”  Part I, entitled “A Broad Overview,”  delves into the evolution of Insurance-Linked Securities (ILS).  Once considered to be an alternative form of risk transfer, ILS have now become a mainstream method for transferring risk from insurers to the capital markets.

Parts II and III of this series, to be released in July/August of 2010, provide a micro-analysis of the non-life and life insurance-linked security sectors.

Part I of three part series: Alternative Risk Transfer, The Convergence of the Insurance and Capital Markets

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Optimal Way to Build Awareness of Life Settlement Option Amongst Seniors

January 29, 2010


A recently completed study has found numerous communication shortfalls within the marketing strategies of the Life Insurance Secondary Market (“LISM”). The study, conducted by the Carlson School of Management at the University of Minnesota in conjunction with the Insurance Studies Institute, found that life settlements have been positioned to seniors in conflicting ways. According to the study, references to life settlements portray them as everything from “a valuable resource for seniors” to “betting on death.” In addition to analyzing the diversity in positioning, the findings also detail seniors’ decision-making processes and how these processes impact the LISM.

Media Brief: Building Life Settlement Awareness Amongst Seniors

ISI supporters can obtain the full-length report.  Please contact Miki Jorgenson @ Mikij@InsuranceStudies.org for details.

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Increasing Awareness of Life Settlements Research study by The Carlson Brand Management Enterprise Team University of Minnesota Carlson School of Management

December 2, 2009


  • How can the Life Settlement Industry best position its message to consumers?
  • How can the Life Settlement Industry increase consumer awareness of the option’s validity?
  • Increase awareness about the option of Life Settlements Change current positioning of Life Settlements in order to positively influence consumer perceptions and acceptance

Increasing Awareness of Life Settlements Research Study

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2009 Revenue Rulings Give Seniors and the Life Settlement Industry a Few Answers, But More Questions

November 30, 2009


A life settlement is the sale of an insurance policy to a third party investor. Tax law provides specific regulations pertaining to taxation of gains on distributed cash surrender values, death benefits to beneficiaries and death benefits to parties that purchased life insurance policies, but such regulations have been unclear when applied to gains on life settlements and premium financed policies (see “Taxation of Life Insurance Policies In An Evolving Secondary Market” by ISI 2008). Previously, the IRS provided no formal guidance on the issue of taxation for either sellers or investors. On May 4th, 2009, the Treasury Department issued Revenue Ruling 2009-13 and 2009-14 regarding life settlement transactions. These rulings provide answers to some questions but create new questions and legal issues. This research project is intended to provide a pragmatic understanding of the new questions and issues.

Research Brief: 2009 Revenue Rulings Give Seniors and the Life Settlement Industry a Few Answers, But More Questions

Full Paper: 2009 Revenue Rulings Give Seniors and the Life Settlement Industry a Few Answers, But More Questions

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Should I Sell My Life Insurance Policy? A Consumers’ Guide to Life Settlements (Comprehensive Guide + condensed brochure)

October 1, 2009


Provide seniors with a thorough and non-biased explanation of life settlements including: the pros and cons; the complex process from start to finish; and the myriad of ramifications that need to be understood before engaging in a life settlement transaction.

Research Brief: Should I Sell My Life Insurance Policy? A Consumers’ Guide to Life Settlements

Full Paper: Should I Sell My Life Insurance Policy? A Consumers’ Guide to Life Settlements

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Examination of Workers’ Compensation Gaps and Inequities in the United States (Discovery White Paper)

September 21, 2009


Workers’ compensation is designed to provide monetary and medical benefits to workers injured as a result of a workplace accident, injury, or occupational disease. Both workers and employers benefit from workers’ compensation when the system works properly, as it protects workers and their families against undue hardship resulting from workplace injuries while granting employers immunity from costly litigation. However, there are gaps in the workers’ compensation system that prevent some injured workers and their families from getting the help that they need.

Research Brief: Examination of Workers’ Compensation Gaps and Inequities in the United States

Full Paper: Examination of Workers’ Compensation Gaps and Inequities in the United States

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