Download Life Risk News Volume 2, Issue 7, July 2023
The equity release market in the UK is facing a challenge of awareness similar to that faced by colleagues in the Life Settlement market across the Atlantic. With supply outstripping demand for the past five years looking for new avenues to market growth is a focus. LRN’s Greg Winterton talks to Ben Grainger, Partner at EY, to explain in UK Equity Release Market Needs Greater Awareness To Fill the Demand and Supply Gap.
The US pension risk transfer sector has had its busiest year, with a record number of transactions worth $52bn taking place in 2022. Rising interest rates are a major driver of this growth as Jake Pringle, Principal and Consulting Actuary at Milliman, explains to LRN’s contributing editor Aaron Woolner in US PRT Market on Course for Record Breaking 2023.
It would be an understatement to say that the US tax code is complex. Jeffrey Davis spoke to James Davis, CPA, of EC Barrett, LLC in Atlanta about proposed rule changes by the US Treasury Department in an effort to clarify possible unintended consequences from 2019 IRS regulations in Proposed Rule by U.S. Department of Treasury Seeks to Clarify Tax Treatment of Life Settlement Exchanges.
It was the failure of Equitable Life some 20 years ago that led to a tightening of solvency reserving. That, and a number of other factors, turned the tide against with-profits products, leaving a number of so-called ‘zombie’ or ‘orphan’ funds. However, with a lot of very careful management, some of these funds have returned to good health and some are even flush with a surplus. Roger Lawrence, Managing Director at WL Consulting, asks the question in UK Closed Life Funds – A Secret Returns Goldmine?
It was always going to be a tough call deciding the larger of the challenges facing the ILS market today. Would it be the rising interest rates, maybe the changing mortality rate, the need for increased levels of deal flow, or maybe there are other factors? We asked our readers and you came back with your verdict in our July Poll: What Is the Larger of the Challenges Facing the Life ILS Market at Present?
For as long as there’s been a life settlement market, there has been discussion over the best or most appropriate mortality tables to use to determine life expectancy. Traci E. Davis, Chief Customer Whisperer, Chief Underwriter at Valkyrie Limited, takes a look at the role of underwriters in LE Mortality Tables and Underwriting.
Enhanced Cash Surrender Value Offers (ECSVOs) have presented the life settlement market with a new dynamic when buying policies. Nat Shapo, Partner, Katten Muchin Rosenman explains to Greg Winterton the challenges ahead and why some US states have already taken action in this month’s Q&A.
While the significant increase in the number of deals has been a boost to the PRT market as a whole, it’s been held back somewhat by a lack of people power to take on the extra work. Andy McAleese, MVP, Longevity, Europe at Pacific Life Re, and Pretty Sagoo, Managing Director of Defined Benefit Solutions and Member of the Group Executive Committee at Just Group, reflect in Change in Approach A Necessity to Combat Human Capital Challenges In UK Pension Risk Transfer Market.
I hope you enjoy the latest issue of Life Risk News!
Chris Wells
Managing Editor
Life Risk News
