infonet-economy

In this paper, we identify key characteristics and implications of the secondary
market for life insurance. We examine the oldest secondary market,
which is the market in the United Kingdom, the relatively young market in
Germany, and the controversial U.S. market. We summarize available data
to describe the current market situation and market potential, which strongly
depend on developments in the primary markets and capital markets, as well
as on regulatory and legal aspects. Next, we discuss benefits and risks associated
with a secondary market, which depend on each market's unique features.
The three markets considered in this paper are fundamentally different,
and the comparative assessment is intended to offer insight into their functioning
and key factors.