Written By: Jim Connolly

Aite Group LLC, Boston, issued a report in January that finds that the life settlement market will transact approximately $13 billion in face amount between 2010 and 2013.

The report, written by Aite senior analyst Clark Troy, examines the life settlements market and IT trends impacting it. The report is based on over 30 interviews with stakeholders in the life settlements industry including vendors and clients.

The 59-page report says that this estimate comes off of $8 billion in volume in 2009 and $12-14 billion in volume in 2008. It notes that the growth of the market varies widely with optimists claiming it will reach $40 billion and pessimists estimating $8 billion in face amount.

And according to Aite’s Troy, policy owners are receiving 18-20% of their death benefit in 2009 compared with 20-25% in 2008. These totals are greater than cash surrender values available to policyholders, the report notes.

Full article at Life Settlement Review.

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