Coventry Releases Peer Review of Lapetus Life Expectancy Study
22 Julio 2024 - 10:34AM
Business Wire
Coventry today released an independent, academic peer review
confirming the results of an internal analysis of life expectancy
estimates issued by leading life expectancy providers. That
analysis found that estimates issued by Lapetus Solutions, Inc. are
consistently the shortest by a wide margin—meaning that valuations
based on Lapetus life expectancies could lead to significantly
inflated asset values and investor losses.
The review of the Coventry findings was conducted by Daniel
Bauer, Professor of Risk and Insurance and Hickman-Larson Chair in
Actuarial Science, Wisconsin School of Business, University of
Wisconsin-Madison
(https://business.wisc.edu/directory/profile/daniel-bauer/); and
Nan Zhu, Associate Professor of Risk Management, Smeal College of
Business, Pennsylvania State University
(https://directory.smeal.psu.edu/nxz24).
The original study compared Lapetus with life expectancies on
the same insureds that other LE providers issued within three
months of the Lapetus reports. The study determined that Lapetus
life expectancies were shorter in approximately 85% of the cases by
an average of around two-and-a-half years, a substantial gap in the
elderly life settlement population. The Bauer/Zhu peer review
confirmed these results by replicating the Coventry study.
The professors also conducted two additional studies. Drs. Bauer
and Zhu explained, “Our comprehensive review started by
independently reproducing the results of the Coventry study, which
our analysis validated. We then conducted two additional reviews
that also supported the original findings. The first complementary
review looked at the LE differences based on age cohorts. We
observed that the percentage where Lapetus is shorter is
consistently high and ranges from 78% to 89%. In the second
supplementary analysis, we removed the three-month window
restriction and adjusted the life expectancies to factor in the
timing of the report dates, allowing us to utilize more
comparisons. The results of the second study were also consistent.
The Lapetus LE was shorter in approximately 83% of all cases by an
average of approximately 29 months.”
“By testing Coventry’s conclusions and doing their own studies,
Drs. Bauer and Zhu have performed a valuable service to our
industry,” said Alan Buerger, Coventry’s Executive Chairman. “The
health and integrity of the life settlement market depends on
having credible life expectancies that investors can use with
confidence.”
The review, as well as Coventry’s original study, are available
at coventry.com/research.
Coventry is the leader and creator of the secondary market for
life insurance. For more than 25 years, we have been driving the
industry forward and expanding opportunities for life insurance
policyowners. Our deep experience combined with a fierce commitment
to consumer rights makes Coventry the clear market leader, a
position we use to raise industry standards and expand consumer
choice. To date, we have delivered more than $5.4 billion to
policyowners who no longer need their policies. To learn more about
Coventry, please visit coventry.com.
For further information or to schedule an interview, please
contact Brian Glicklich at Digital Strategy Ltd.,
Brian@DigitalStrategyLtd.com or 818-867-9096
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Brian Glicklich Digital Strategy Ltd.
Brian@DigitalStrategyLtd.com 818-867-9096