Streamlining the Secondary Market for Life Insurance
Life settlement transactions are manual, paper-intensive, take months to complete, and lack transparency regarding the true value of policies. A 2005 Deloitte & Touche study of the life settlements market further contends that, “The inefficiency of a Life
Settlements sale, as measured by the Lost Economic Value, arises from the high transaction costs involved in the sale.” The development of LifeX’s open, forward auction system alleviates all of these issues.
Open, Forward Online Auctions
Online forward auctions are an ideal way to extract the most value from an unneeded life insurance policy. Sellers initiate auctions by listing cases and scheduling auction dates at no cost. Buyers then compete against each other in Web-based, real-time auctions, driving demand and price forward as bids increase. LifeX’s open auction format allows buyers to see what others are offering, enabling a clear understanding of the market price for a policy. LifeX estimates that the speed and efficiency of open, forward auctions will eliminate weeks, and in some cases months, from each negotiated settlement, while delivering scale and transparency to the market.
The First Transaction
In 2004, the management team of Life Settlement Insights (LSI), a leading full-service life settlement broker, sought a more efficient way to manage negotiations with the many buyers of life insurance on the secondary market. LSI partnered with former FreeMarkets.com executives and HedgeHog, an auction technology company, to build LifeX. On April 29, 2005 LifeX launched the World’s first online trading system for life settlements and completed its first transaction.
LifeX, Inc.
30775 Bainbridge Rd., 1st Floor
Cleveland, OH 44139
800-685-7494
216-373-2574 fax
Staff Members
Noreen Sussman
Regional Account Manager
Scott Wertz
Regional Account Manager
Scott DiMuzio
Regional Account Manager
Valerie Hornyak
Regional Account Manager
Rachael Kinder
Exchange Specialist
Sally Iacampo
Exchange Specialist
Claire Belanger
Director of Training & Development
Resources: Life Settlement Auction - Life Settlement Information - Life X - Life Exchange
