Asian investors increase demand for secondary life insurance assets

Interest is growing in Singapore, Hong Kong SAR, and Japan.

Asian investors are showing greater interest in secondary life insurance, or life settlements, as they look for returns that are not tied to equity, credit, or property markets, according to Abacus Global Management.

Whilst well established in the US and Europe, life settlements remain at an early stage in Asia. 

Interest is growing in Singapore, Hong Kong SAR, and Japan, where institutional investors and family offices are using the asset class to diversify portfolios and generate steady cash flows backed by highly rated US insurers.

Globally, life settlements represent a multi-trillion-dollar opportunity. In the US alone, more than $200b worth of life insurance policies lapse each year, often because policyholders are unaware of other options.