Phoenix Companies Inc. has entered the life settlement business.
Phoenix Life Solutions, a unit formed in 2007, has started buying life insurance policies from owners through a network of 4 brokerage general agencies, according to Phoenix, Hartford.
The agencies in the initial network are Advanced Planning Services Inc., San Diego; American Brokerage Services Inc., Wyndmoor, Pa.; Ash Brokerage Corp., Fort Wayne, Ind.; and Madison Brokerage Corp., Morristown, N.J.
John Hillman is the president of the new life settlements business.
The unit will not buy “investor-initiated” policies, and it will report compensation and provider fees as a percentage of value created for the client, Phoenix executives say.
Some life insurers say the life settlement market can hurt the life insurance industry, by throwing off lapse rate projections.
Phoenix executives say the life insurance industry should recognize that the market is good for consumers.