Bahamas-Bound

The fact of the matter at the present time, folks, is that life settlements are here to stay. The business has an association that represents it well. It is pushing for more disclosure and transparency, thereby undercutting arguments that it wants neither.

Additionally, it is thriving because its fundamental proposition of seeing life insurance as a marketable asset is something that resonates with consumers and which, in truth, the life insurance business, for all its efforts, has not been able to answer with any kind of compelling argument that would put a fatal hole in that proposition.

I think this is starting to sink in and that the next phase in this battle will be not of life insurers seeking to crush life settlements but to co-opt them. Already, one major life insurer has announced that it will be entering the business. You can also expect to see life companies start to roll out new features in products that will make it more attractive for policy owners to keep their policies than sell them.

Additionally, you can anticipate other changes as more institutional players enter the life settlement business.

The roundtable I referred to up top (in the Bahamas) is going to explore the thoughts of top life settlement executives about the changes coming down the pike in the next few years and how they expect it to transform their business. You'll be able to read their comments in a supplement coming out early in November.

While we may be just about over the Wild West phase of the business, the changes ahead may prove to be even more meaningful in the long-term picture.

It should make for quite an interesting conversation (in paradise).