The Life Settlement Industry Must Have Speed and Transparency

What You Need to Know

The clients want speed.
The agents and advisors want speed.
CarMax could be a model.

The life insurance settlement industry is on the cusp of significant changes as we move into 2024.

At a recent industry conference, I had the opportunity to speak with many professionals, ranging from agents and broker-dealers to life settlement brokers and providers.

These conversations crystallized into three pivotal trends that promise to redefine the secondary market for life insurance policies.

These trends, intimately connected, are speed, friction and transparency.

Accelerating Speed in Settlements

In an era where the purchase of cars, homes and financial products happens at a breakneck pace, the life insurance settlement industry is being called upon to match this speed.

Agents and advisors, particularly those who have grown up during the digital age, are vocally pushing for faster valuations of policies.

The expectation is to shrink the traditional weeks-long process into a matter of days.

This demand for speed is not just a preference; it’s becoming a competitive differentiator.

Companies that can’t keep up with this tempo will inevitably lag behind.

Reducing Friction in Processes

Friction, or the lack thereof, goes hand-in-hand with speed.

The new wave of agents and advisors seeks clarity and efficiency from the get-go.

They favor streamlined applications that do not bog down their clients with cumbersome processes.

The potential for technology to expedite decisions in the life settlement industry is acknowledged, yet its implementation remains elusive and yet to be discovered.

I draw a parallel with the CarMax business model, which offers non-binding, instant car valuations.

We have a similar approach that prioritizes swift, accurate estimates to empower agents and advisors to serve more clients effectively.