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.

Emphasizing Transparency

Transparency has surfaced as a critical concern among professionals in the financial services sector.

The opaque nature of roles and commissions within the life settlement industry has caused discomfort, particularly around the ethical implications of undisclosed large commissions.

There is a growing call for disruption/change in the traditional “shell game,” The recent scrutiny faced by the National Association of Realtors for opaque practices signals a warning for the life insurance settlement industry to adopt a transparent, straightforward approach to maintain trust and integrity.

We strive to be at the forefront of these changes, pioneering the transformation towards these emerging standards.

We aim to deliver information at a speed that resonates with the digital generation while ensuring a seamless, low-friction appraisal process.

Our model is not just about expediency; it’s about enabling agents and advisors to make informed, meaningful decisions quickly.

Recognizing our role as the first market disrupters in the secondary market for lead generation and streamlining transactions, we understand the industry’s expectations and the necessity of evolving the business model for sustained success and prosperity.

If I learned one thing during my recent meetings with agents and advisors, it’s that the life insurance settlement industry is primed for a paradigm shift.

By embracing the trends of speed, friction reduction and transparency, we can not only meet the demands of modern professionals but also ensure that our industry remains robust and trusted as we navigate into 2024 and beyond.