Life settlements offer potential investors the opportunity to earn great returns in an asset class that is uncorrelated with current economic markets. In order to do this, however, investors need to have three key skill sets:
- An understanding of mortality curves and expected survival-based cash flows.
- An actuarial understanding of how insurance policies are priced and how to minimise insurance premium payments by utilising key policy characteristics.
- An ability to manage longevity risk.
While life settlements can offer great returns, most life settlement funds are weighed down by poor practices, misaligned incentives, and excessive commissions.
Colva helps investors overcome these obstacles by providing actuarial and insurance knowledge that many funds lack. This expertise enables our clients to maximize the actual returns they earn while minimizing their downside risk.
Life Settlement Funds
At Colva we draw upon our vast actuarial experience in valuing, investing, and managing the risks for one of the largest life settlement portfolios in the world as well as pricing and designing insurance policies for one of the largest insurance companies in the world. This experience allows us to provide a number of services to life settlement investors that novice investors often neglect.
Individual Policy Pricing
Investors often are tasked with pricing hundreds of millions of policies each month just to find a few that are attractive investments. Without the time or actuarial expertise to do this properly, investors run the risk of missing on great opportunities—or even worse investing in poor ones due to lack of expertise. At Colva we handle all of this directly. Read more…
Life Settlement Valuation
Investors managing portfolios of life settlement policies often need third party valuation for auditing or exit strategy purposes. Colva utilizes risk-adjusted protocols to value life settlement portfolios for investors Read more…
Many life insurance policies have unique features that can’t be minimized through simple pricing techniques. Are you paying more in premiums than necessary? Read more Read more…
Click here to go to Colva’s complete life settlement article/video archive.