Industry group the Life Insurance Settlement Association (LISA) has published the 2023 edition of its Market Data Collection survey.
The headline is that life settlement received over $842m from licensed LISA member providers for the sale of their unwanted life insurance policies, up from $790m in 2022. Additionally, consumers received $707m more from the life settlement option vs. lapsing or surrendering their life insurance coverage, the largest sum recorded since LISA began collecting market data.
LISA provider members concluded 3,218 life settlement transactions in 2023, purchasing a total face value of $4.67bn.
“The data that we collected in our Market Data Collection Survey this year shows the benefit that our industry is bringing to the American senior. In 2023, life settlement consumers received over $842m from the sale of their unwanted life insurance policies, more than six times the Cash Surrender Value (CSV), putting $707m more in seniors’ pockets than they would have received from insurance carriers,” says said LISA Board Chair, John Dallas.
“Additionally, with over nine million policies, valued at over $940 Million, lapsed or surrendered annually by life insurance consumers, the life settlement industry remains relatively untapped,” said Dallas. “It’s primed to take full advantage of future growth opportunities.”
“For the third year in a row, our goal was to produce accurate market information that our industry could highlight in order to educate both advisors and consumers on the benefits of the life settlement option” added LISA Executive Director, Bryan Nicholson.
“We plan to continue this project annually while exploring ways to expand its scope based on industry input. Our goal is to further solidify LISA as the go-to source for life settlement industry market data into the future.”