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LISA Releases 2023 Market Data Collection Survey Results

“The data that we collected in our Market Data Collection Survey this year shows the benefit that our industry is bringing to the American senior.”

Washington, DC--May 7, 2024  The Life Insurance Settlement Association (LISA) has released the findings from its 2023 Market Data Collection Survey. The data collected represents the summary closing data collected from 18 LISA member providers who completed life settlement transactions in 2023. These companies executed approximately 95% of the life settlement transactions completed in the 2023 calendar year.
 

“The data that we collected in our Market Data Collection Survey this year shows the benefit that our industry is bringing to the American senior,” said LISA Board Chair, John Dallas. “In 2023, life settlement consumers received over $842 Million from the sale of their unwanted life insurance policies, more than 6 times the Cash Surrender Value (CSV), putting $707 Million more in seniors' pockets than they would have received from insurance carriers.” 


“Additionally, with over 9 million policies valued at over $940 Million lapsed or surrendered annually by life insurance consumers, the life settlement industry remains relatively untapped,” said Dallas. “It's primed to take full advantage of future growth opportunities.”

 

Highlights From the 2023 Data:

  • Life settlement consumers received over $842 Million from licensed LISA member providers for the sale of their unwanted life insurance policies, marking the third consecutive year of increased payments.  
  • Life settlement payments averaged 6.2 times more than CSV (622% more!), which translated into an additional $262,000 in American seniors' pockets!
  • Life settlement consumers received $707 Million more from the life settlement option vs. lapsing or surrendering their life insurance coverage. This is the largest sum ever recorded since LISA began collecting market data.
  • Licensed LISA member providers completed a total of 3218 life settlement transactions in 2023, continuing a trend of 2-3% year-over-year increases. This figure represents just a tiny fraction of the over 9 million policies, valued at over $940 Million, that life insurance consumers surrender or let lapse annually.
  • LISA member providers purchased a total face value of $4.67 Billion in 2023.

 

“For the third year in a row, our goal was to produce accurate market information that our industry could highlight in order to educate both advisors and consumers on the benefits of the life settlement option” said LISA Executive Director, Bryan Nicholson. “We plan to continue this project annually while exploring ways to expand its scope based on industry input. Our goal is to further solidify LISA as the go-to source for life settlement industry market data into the future.”

 

The Survey Posed Four Questions That Providers Were Asked to Answer:

  1. What was your company's total number of completed life settlement transactions in 2023?
  2. What was the Sum of Net Death Benefits resulting from all completed transactions in 2023?
  3. What was the Sum of Cash Surrender Values resulting from all completed transactions in 2023?
  4. What was the Net Amount paid to consumers for all completed transactions in 2023?

 

LISA plans to continue collecting market data on an annual basis through the guidance and support of its Programs and Resources Committee (PARC), a member-led group that identifies opportunities and tools to grow the life settlement market.

 

If you have any questions about the data findings, survey process, or would like to participate in this effort in the future, please contact Bryan Nicholson

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