If you are currently searching the web for current, non-bias, and compelling literature on the internal rate of return (IRR) for Life Settlements? Then you must get your hands on Empirical Investigation of Life Settlements Secondary Market for Life Insurance Policies by Professor Narayan Y. Naik and Afomzo V Juanário, from the London Business School.
This paper, published June 2013, is the first to empirically examine settlement transactions by original policy owners in the life settlements market. It provides a valuable insight in to internal rate of return (IRR) and the benefit that the secondary market contributes to both investors and the original policy owner.
Compelling literature on this asset class is rare. Although there are many research papers many only discuss positive/negative implications of life settlements, regulatory aspects, and market characteristics.
In a study of 9,000 policies that were the subject of a life settlement between 2001 and 2011, policy owners received more than four times the cash surrender amount through a life settlement, according to the study. Aside from the obvious benefits to consumers looking for options with regard to their unwanted or unneeded life insurance policies; Professor Naik’s research also found that the expected internal rate of return for investors are consistently and significantly higher than treasury yields. 1
This study proves to be not only a great literature tool for the institutional investor but also an invaluable tool for the original policy holder. If you are keen to learn more about the opportunities available for an institutional investor in this asset class contact us.
As always we wish you well in your endeavours in this interesting and valuable asset.
 N.Y.Naik and A.V.Juanário, 2013,Empirical Investigation of Life Settlements: The Secondary Market for Life Insurance Policies,
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