A Life Settlement Auction could be the future to the Life Settlement and Senior Life Settlement Industry.
The Life-Settlement Market Meets Technology
Other long-established financial market segments rely on dependable exchange and listing platforms, including the NYSE, NASDAQ, and the real estate MLS. A similar exchange must be developed to create a true fair market for life settlements. It would result in the most competitive environment for buying and selling policies than ever before. It would allow financial professionals to easily post clients’ policies for sale and allow for more qualified buyers to participate in the process. This would result in more competition and higher sale prices for each policy brought to market. A system that brings together the technology and trading infrastructure will further the secondary market for life-settlement transactions and change the industry’s market potential on a grand scale.
A New Technology Solution is on the Horizon
Hundreds of financing entities around the world view life settlements as a very secure investment if the policies are priced correctly. However, in the current industry structure, many of these institutions face major barriers to purchasing policies on the secondary market. Further, many brokers don’t have the necessary relationships with funders to shop their policies effectively to all qualified buyers.
The next logical step for taking life settlements mainstream is to introduce a technology that changes the way policies are brought to market and sold to qualified buyers. A technology platform that allows policies to be posted and available for purchase by a large group of qualified buyers would increase competition, create a more efficient market, and allow the client to get the most accurate sale price.
Early this year, a new solution will allow financial and insurance professionals to post clients’ life-insurance policies via an online exchange and make them available for sale to qualified institutional buyers. All offers from qualified buyers are submitted electronically using a secure online blind auction format. Financial professionals can view the highest bid on their client’s policy in real time. The blind format of the bidding process encourages buyers to make competitive bids and secures the best possible price for each policy within a specified auction timeframe. All submitted offer results are fully disclosed before the sale is final to ensure compliance and transparency. Funders will have greater access when pursuing policies on the secondary insurance market. As the industry continues to evolve, technology will continue to be integrated into many companies’ processes for buying and selling policies.
If you are an owner of a life insurance policy or agent/financial planner, please contact us to setup a Life Settlement Auction.
Resources: Life Settlement Auction - Life Settlement Information - Life X - Life Exchange
