| As the possibility of a global double dip recession | | | | stronger, more competitive market will benefit |
| looms in the distance, the life settlement market | | | | sellers with higher sales prices. |
| is seeing some positive signs. After a difficult | | | | At the dawn of 2010, many hoped that Europe |
| 2009 and early 2010, life settlements look poised | | | | could provide some liquidity into the United States |
| to be on the rise. Overall, industry participants | | | | life settlement market. A recent European trade |
| are cautiously optimistic about the near term | | | | mission along with strong interest from European |
| future of the secondary life insurance market. | | | | institutions were interpreted as clear signals that |
| Industry experts are drawing some optimism | | | | the American secondary market for life insurance |
| from recent anecdotal evidence. Life settlement | | | | policies would rev up this year. Many were |
| providers were previously paralyzed due to a lack | | | | optimistic that foreign investment would add |
| of funding. Some went out of business, but those | | | | liquidity to the American market and somewhat |
| that survived are now seeing a return of funding | | | | normal buying activity would resume. Europe's |
| sources. In fact, some providers are now | | | | most recent economic crisis has measured those |
| representing multiple funding sources and | | | | hopes. The Euro dollar is on an extended slide |
| aggressively looking for cases from life | | | | against the US dollar creating an additional |
| settlement brokers. | | | | incentive for European investors of US life policies. |
| The Amrita Life Settlement Index reported a | | | | However, the underlying European economy is |
| steep gain in April based on increased buying | | | | undermining the investment climate there and |
| activities by life settlement providers. Most | | | | eroding the ability of institutions to make these |
| noticeable was a sharp increase in the amount of | | | | kinds of long term investments. European |
| bids being submitted for life insurance policies on | | | | investment banks and funds are now concerned |
| the secondary market. The increased competition | | | | with liquidity as they watch other assets lose |
| suggests a strengthening market overall. A | | | | value during the PIIGS crisis. |