Conning Forecasts Long-Term Expansion for U.S. Life Settlement Market

Aging demographics, alternative-asset demand, and consumer access support growth through 2035

HARTFORD, Conn., Oct. 7, 2026 /PRNewswire/ -- The U.S. life settlement market is positioned for long-term expansion as investor demand for low-correlated alternative assets converges with an aging population, rising retirement and long-term care funding needs, and broader direct-to-consumer awareness, according to Conning's study, Life Settlements: Positioning for Long-Term Expansion.

"The long-term forces supporting the life settlement market remain favorable, but the path to growth is becoming more complex," said Scott Hawkins, the Head of Insurance Research at Conning and author of the study. "Market participants will need to expand consumer access while carefully managing policy supply, insurer exposure, financing, and emerging longevity risks."

The study provides Conning's analysis of the 2025 life settlement market and its key drivers, along with forecasts for annual settlement volume and gross market potential through 2035.

The study notes that life settlements remain appealing to investors seeking differentiated sources of return with low correlation to broader financial markets. Higher insurer portfolio yields can also support universal life crediting rates and premium optimization. On the consumer side, the growing population of older Americans and increasing long-term care costs may encourage more policyholders to consider life settlements as an alternative to lapsing or surrendering a policy.

Life Settlements: Positioning for Long-Term Expansion is Conning's 21st consecutive review and forecast of the market. In addition to the market forecast, the study includes analysis of the insurers targeted by life settlement investors and an introductory review of market structure, participation costs, and key portfolio risks.

To purchase the study, click here. 

About Conning

Conning (www.conning.com) is a leading investment management firm with a long history of serving the insurance industry. Conning supports institutional investors, including insurers and pension plans, with investment solutions, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe, and North America. Conning is part of Generali Investments.

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SOURCE Conning