The COVID-19 pandemic has changed the way nearly every industry does business. Some of these industries have been negatively affected, while others have quickly gained steam in recent months by pivoting their overall business strategy. Since the onset of the pandemic in March 2020, life settlement industry trends have been closely monitored - and the results may surprise you.
Life Insurance Settlement Trends and COVID-19
The life insurance industry as a whole has been largely unaffected by the COVID-19 pandemic. According to a Forbes report, insurers are staying in the market, premiums are remaining steady, and claims are being paid. This falls in line with the generally stagnant trend of the life insurance industry since the early 2000s, after the tragic 9/11 attacks.
In late 2019, just before the pandemic hit the United States, global investment firm Conning predicted that the life settlement industry would see double-digit growth over the next decade. However, policyholders are now thoroughly evaluating their options before initiating a life settlement transaction. Nearly half a million deaths in the United States alone have been associated with the COVID-19 pandemic, according to the Center for Disease Control. This has many consumers considering whether or not they should settle their policy or hold out in case of an unexpected casualty, as the amount of their life settlement will be noticeably less than their death payout.
Networking and Virtual Events in the Industry
Like all industries, networking is a vital part of the life settlement industries, especially for members of the Life Insurance Settlement Association (LISA). In-person events of this sort have been effectively eliminated in 2020 and most have been pushed in 2021, with strict COVID-19 restrictions affecting much of the United States. Virtual events are now quickly gaining in popularity for those still looking to connect with industry professionals in a meaningful way. Many have found professional social networks such as LinkedIn and Zoom to be a powerful tool to not only find these events but also find like-minded individuals to share ideas within these times.
LISA’s annual Institutional Investor Conference will be held virtually via Zoom on Monday, March 22 and Tuesday, March 23. The event will convene LISA members, institutional investors, and other life settlement industry stakeholders to address “building solutions for the next “new normal”.” To learn more about the virtual Institutional Investor Conference, please click here. To register to attend, please click here. Please contact Bryan Nicholson at bnicholson@lisa.org with any questions regarding this event.
COVID-19 has been a driver of change that has affected the “normal” business operations of most industries, including the life settlement industry. As life settlement companies navigate these changes, continued industry growth is expected to continue as the effects of the virus wane over time. Opportunities to expand business still exist within the space despite current circumstances. Be sure to take note of these trends and apply them in 2021 and beyond.
