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Wow!
What could have been an interesting, intelligent, and stimulating discussion about something that could affect our industry deeply is drowned out by all of this partisan bullsh#t.
I think your both assholes for carrying on so much about something so pointless! lol
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But back to the original subject...
Are you sure they where talking about just life settlements?
There is talk on wallstreet these days about bundling LI in general, just as they did the mortgages.
Anything that is paid on installments can be bundled, securitized, and chopped up....
Some of the struggling LI carriers would jump all over this if given the chance....
Errr...no. When they price their life insurance, they take into account lapse ratios. Settlements screw with those lapse ratios (i.e., they go down, thus they have to pay more claims). Therefore, insurance companies pay more in death claims, which causes them to raise rates on new insurance to new clients, potentially cutting (I'm guessing here) commissions for the agent. Lose-Lose-Lose. I'm all for freedom of doing business how you want, but I fail to see how settlements are good for anybody other than the life settlement company and the investors.