Life Settlement Index Points To Decline

The Amrita Life Settlement Index experienced a 73-point drop in February from January 2010.

The weaker-than-expected demand for life insurance policies on the secondary market resulted in a 14% decline, from 528 points to 454 points on the index, developed by Amrita Financial Inc., Oceanside, Calif.

The weakness was largely due to a persistent imbalance between available policies and active buyers in the life settlement market, says Amrita. Traditional sources of policy origination such as life settlement brokers, consumers and other intermediaries continue to feed supply into a market showing limited demand.