As mentioned last week, the life settlement industry is recalibrating itself after a major underwriting change was announced at a popular life expectancy provider. This reclalibration has now thrown a wrench into the life settlement industry gears, as the life expectancy provider has apparently identified several issues that created errors in the new reports. In their words:

“Once clients had an opportunity to review the new certificates, we received numerous questions regarding the results. Each issue raised was thoroughly investigated and we also re-analyzed and re-tested the other calculations in our system to identify any other potential issues. Through this analysis and testing, we identified three items that required adjustments. One adjustment impacts all life expectancies we issued on the new 2013 Tables and the other two only impact a portion of the life expectancies. Otherwise, the life expectancies have been produced under the new Tables with the results we expected. We are working to correct the life expectancies now and sincerely apologize for the inconvenience.”

In response, another life expectancy provider responded with a video explaining their position, and the benefits of their approach to life expectancy underwriting.

Of course, all of this has the industry slowing down and waiting for some clarity on the underlying mortality issues. At Settlement Benefits, we believe this is creating short-term pockets of opportunity with some types of files. We will continue to utilize these reports in an intelligent manner that invokes the best-case scenario for each and every case. Call us and we can discuss your client’s file and how this change may help maximize its value.