A new study from insurance asset manager Conning finds that while the number of new policy settlements declined in 2024, long-term growth drivers for the life settlement market remain strong.
2025 Life Settlements – A Pause for Now is a report examining key trends, forecast drivers, and insurer performance from 2024 through 2034 and says that while economic uncertainty, rising interest rates, and equity market volatility have led investors to seek alternative assets with low correlation to traditional markets, at the same time, consumer demand for retirement income and long-term care funding continues to grow.
“Our view is that the life settlement market may have paused in 2024, but the long-term forces driving growth remain intact,” said Scott Hawkins, Managing Director and the Head of Insurance Research at Conning.
“Investor interest in alternative assets is strong, and the emergence of a broader direct-to-consumer life settlement market is expanding access and awareness.”
Conning has tracked the development of the life settlement market since 1999. This year’s study includes a detailed forecast of life settlement growth drivers through 2034, performance analysis of insurers targeted by life settlement investors and an introductory primer for new investors exploring the asset class.
The study also examines the impact of economic conditions, regulatory stability, and demographic trends on market potential and estimates the average annual gross market potential for life settlements at $224bn, with annual volumes projected to reach $4.6bn.