The secondary market for traded US insurance policies developed since the late 80’s of the last century. In the meantime the market has reached a respectable size and matured significantly. Given the strongly increased market volumes especially over the last years a broad range of products was developed and launched, which give investors access to the asset class life settlements.
However there lacked so far a reliable benchmark which reflects the performance of the broad market. This issue has been solved with the launch of the AAP Life Settlement Index. The index is suitable as benchmark for investments in the area of traded US life insurance policies and allows investors to run performance comparisons and analysis of the strategic asset allocation.