Someone at life settlement provider recently told me that he felt LE's (life expectancies) are the biggest challenge in the life settlement market right now. After some serious consideration, I have to agree with him. At the end of the day, insured LE's have to be accurately assessed in order for investors to have confidence in their investment and continue to put capital into the market. If the confidence isn't there and investors direct capital elsewhere, the life settlement industry will be finished.

As 2010 draws to a close and the dawn of a new year beckons, those in the life settlement industry look forward with renewed optimism. By most accounts, the life settlement industry's bottom is behind it and the secondary life insurance market is now in the process of recovering. How much and how fast is still to be determined. However, below are the Top 10 Predictions For Life Settlements in 2011.

The life settlement world has seen an interesting 2010. As it comes to a close, some of this year’s events can be viewed not only as a barometer of the industry throughout the year, but also as a significant indicators of its future. Below are the ten biggest life settlement stories of 2010, in no particular order.

A majority of states now have laws regulating licensing, disclosures and transparency in life settlement transactions.

Legislation does not traditionally assign the responsibility of informing consumers that life settlement options are available. That is beginning to change.

As many people know, there are 3 types of life insurance policies that are sellable in life settlements. Whole Life, Universal and Convertible Term Policies, with the Universal policies being the most desirable.

Early last week we announced that Amrita Financial had entered into a strategic partnership with Finance Logix. There has been a great "buzz" around here ever since the partnership began to develop legs. Now that we have made the formal announcement we are busily working to implement the partnership.

In 2009, New York State passed much anticipated life settlement legislation, which brought life settlement brokers, life settlement providers and life settlement intermediaries under the regulatory authority of the New York Insurance Department.

This regulatory body is in the process of administering licensing requirements for industry participants conducting business in New York state.

Last week Amrita Financial released the February data for the Amrita Life Settlement Index. It showed a dramatic decline of 13% from January. Some have wondered how the index could be so volatile and have asked for more information about the way it works. In this blog post I will examine some of the factors that contributed to the volatility and resulting decline expressed in the latest life settlement index results.

A life settlement occurs when some sells their unwanted or unneeded life insurance policy for an immediate payment. What happens when the life insurance policy was unwanted or unneeded to begin with? By now, most are familiar with STOLI transactions which have come under immense public, regulatory and statutory scrutiny. However, policy flipping in which someone with an insurable interest buys unneeded life insurance for themselves or loved ones with the intent of selling it in a life settlement has garnered much less attention.

As evidenced by the 13% decline in the Amrita Life Settlement Index’s February results, the life settlement industry still maintains a precarious posture. While a number of life settlement industry insiders have gone on record saying there will be a recovery in 2010, most agree it isn’t here yet. We’ve seen the industry recently shudder with the news of Goldman Sachs’ departure from life settlements.