2021 LISA Member’s Annual Market Data Released

The Life Insurance Settlement Association (LISA) advances the highest standards of practice and professional development for the life settlement industry and educates consumers and advisors about a life settlement as an alternative to lapse or surrender of a life insurance policy. As the oldest and largest trade organization serving the life settlement market, the LISA membership is poised to be a key catalyst in a new era of industry growth.

On May 3, the Life Insurance Settlement Association (LISA) released findings from its 2021 Annual Market Data Collection Survey. The data collected represents summary closing data from 2021 life settlement transactions with twenty-three LISA provider members contributing data to this effort.

Additional highlights from the data include:

  • Consumers were paid over $750 Million by LISA Members for the sale of their unwanted life insurance policies, instead of receiving only $96 Million had they chosen to lapse or surrender their policy.
  • Consumers received an average of 7.8 times more than their Cash Surrender Value, translating into over $660 Million more in American seniors’ pockets than what they would have received from life insurance carriers.
  • More than 3000 transactions were conducted by LISA members totaling over $4 Billion in Face Value. These figures represent just a tiny fraction of the 9 Million plus policies & $642 Billion that are lapsed or surrendered annually by life insurance consumers.
  • The average policy size, or amount of Net Death Benefit, per transaction was $1.33M.

“In announcing these findings, LISA’s goal is to deliver relevant and valuable life settlement industry data to its members, the investment community, and policy holders and their advisors,” said LISA Executive Director Bryan Nicholson. “This was truly a collaborative effort set forth by our membership and I would like to thank each of our members that participated in developing and completing the survey this year”

The survey posed four questions that Providers were asked to answer:

  • What was your company’s total number of completed life settlement transactions in 2021?
  • What was the Sum of Net Death Benefits resulting from all completed transactions in 2021?
  • What was the Sum of Cash Surrender Values resulting from all completed transactions in 2021?
  • What was the Net Amount paid to consumers for all completed transactions in 2021?

LISA plans to continue data collection on an annual basis into the future through the guidance and support of its Member Affairs Committee (MAC), a member’s only working group that identifies opportunities and tools to grow the life settlement market.

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