Insurance auctions go live: LSI’s first online exchange |
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Wed, 04 May 2005 13:05
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Auctions for unneeded life insurance policies will now take place online with Life Settlement Insights (LSI)’s first Internet-based exchange, named LifeX (http://www.life-x.com ).
The online insurance settlement exchange is basically an electronic communication network (ECN) for all insurance industry participants. It will allow institutional buyers to compete against each other for unneeded life insurance policies. They can participate by submitting their bids in this open-forward, real-time, auction format.
| The CEO of LSI, I. James Cavoli, said his organisation expected the online exchange to prove more efficient than traditional methods of negotiation. They also hope the online process would generate true fair market values for the company’s clients.
The site operates on HedgeHog Inc.’s proprietary platform which uses a Web-based interface that can facilitate online negotiations, completely dispensing with the need for expensive and time-consuming technology.
The online exchange will not only eliminate paper-intensive, manual processes, but also cut process time drastically and create a level playing field. The traditional process usually took months to complete because of the required procedures. It also lacked transparency about the true value of policies.
For brokers and advisors, the online exchange will be an efficient, scalable and fast negotiating solution for their clients.
Currently the secondary market for life insurance is dominated by LSI which has taken this online initiative. The firm has a nation-wide network of financial institutions and operates through brokerages and financial service agencies. Advisors and brokerages operating through LSI vouch for the firm saying LSI’s vast network of financial institutions is a clear advantage ensuring fair market value for their clients’ policies.
With LifeX, insurance settlement auctions will go live and therefore have greater transparency.
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