Completed Papers

A multifaceted approach to describing the numerous pressing concerns facing the life insurance secondary market (LISM) as the recession unfolded in late 2008/early 2009. First, the “state of the industry” is examined, followed by related discussions concerning capital markets, insurer reserve requirements, best practices and standards, legislation and regulation, and new products.

Research Brief: Secondary Market of Life Insurance and Related Insurer Challenges Entering 2009

Full Paper: Secondary Market of Life Insurance and Related Insurer Challenges Entering 2009

Tags: Best Practices, Capital Markets, Life Insurance Secondary Market (LISM), Life Settlement, Policyholder, Retirement, Secondary Market

To examine how portfolio size affects longevity risks in a pool of life settlements. Specifically, this research analyzes the impact of longevity risk on the investment return of a life settlement portfolio.

Research Brief: The Effect of Life Settlement Portfolio Size on Longevity Risk

Full Paper: The Effect of Life Settlement Portfolio Size on Longevity Risk

Tags: Investment, Life Expectancy, Life Settlement, Longevity Risk, Portfolio

Provides a brief overview of the taxation associated with both traditional and evolving third party life insurance transactions. It also takes a look at the differing methods for tax basis computation endorsed by the IRS in 2008, and highlights the potential impact on life insurance premium finance.

Research Brief: Taxation of Life Insurance Policies in an Evolving Secondary Marketplace

Full Paper: Taxation of Life Insurance Policies in an Evolving Secondary Marketplace

Tags: IRS Revenue Rulings, Life Insurance, Life Insurance Secondary Market (LISM), Life Settlement, Premium Finance, Seniors, Taxation

Provides a general overview of the deterministic and probabilistic pricing methodologies, and the application of the common contributing factors in determining the price of life insurance policies for life settlements in the secondary market. This paper does not venture into an analysis or review of the internal economics provided by life insurance policies.

Research Brief: Introduction to Methodologies Used to Price Life Insurance in Life Settlement Transactions

Full Paper: Introduction to Methodologies Used to Price Life Insurance in Life Settlement Transactions

Tags: IRR, Life Insurance, Life Insurance Secondary Market (LISM), Life Settlement, Methodologies, Mortality, Pricing

ISI’s inaugural research project, Understanding Life Settlements and Industry Issues Entering 2008, sought to provide a practical framework for understanding the Life Insurance Secondary Market (LISM). Further, this paper identified a range major issues facing the LISM at the beginning of 2008, from the tax revenue aspects of life settlements to insurer concerns and regulatory oversight.

Research Brief: Understanding Life Settlements and Industry Issues Entering 2008

Full Paper: Understanding Life Settlements and Industry Issues Entering 2008

Tags: Consumers, Investor, Legislation, Life Insurance Secondary Market (LISM), Life Settlement, Premium Finance, STOLI, Tax Revenue