Life Settlement Valuation Risks

Life Settlement Valuation Risks

In this video, an actuary draws upon his experience of helping to manage and evaluate a $4 billion life settlement porfolio to reveal valuation mistakes that both novice and experienced life settlement investors make when valuing life settlement policies and portfolios.

This video reveals the problems with deterministic valuation, probabilistic valuation, stochastic valuation, poor investment and fund structures, undervaluing premium liabilities, and why actual returns for life settlement investments can be less than priced returns due to poor valuation practices and understanding of life settlement mortality experience.

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References

  1. Life Policy Group. Web 10 Oct 2010.
    Available at: http://www.lifepolicygroup.com/press/market-rocked-as-21st-services-changes-mortality-tables

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