Date: 2 May 2024
CG Analysts Ltd. to launch free-to-use community marketplace for secondary and tertiary life policies.
CG Analysts are in the final stages of developing and testing a free online community marketplace for the trading of secondary and tertiary life policies – lifepolicyauctions.com (“LPA”).
From the outset, LPA was designed to be a community tool; not only do CG Analysts welcome everyone’s input and suggestions for how the system should work, but it is also 100% free to all users. The only time a fee would apply would be if a seller chose to have a (totally optional) “enhanced listing” (to be included in a future release), in which case a charge would be levied for CG Analysts to put the policy onto its policy valuation software in order to generate the necessary charts.
Designed to provide transparency and equal opportunity, LPA ensures that all authorized users can see the same information (bids, documents etc.) at the same time. Secondary market policies are only visible by providers who are licensed in the seller’s state. As LPA is a ‘live’ system, high bids and new documents are displayed as soon as they are received. It is worth noting that nobody (including CG Analysts), other than the seller, knows the bidders’ identities as all data is fully encrypted.
To avoid last minute bids, sellers can choose to automatically extend auctions beyond their original closing deadlines each time a new bid is received, thereby giving other bidders time to counter. Bidders are also able to enter ‘max bids’ allowing the system to automatically bid for them based on the minimum increments set by the seller. In these cases, nobody (including the seller) knows that a ‘max bid’ has been placed or what the ‘max bid’ is.
To date, LPA has received a very enthusiastic response from both brokers and providers who have been asked to review it.
Brokers have indicated that they want to ensure that using LPA doesn’t increase their workload, the opposite should be the case as an API will allow them to export cases from their own systems into LPA and they will then have a single centralized and automated system allowing all potential buyers to access documents, current bids and other auction information. They will also have an independent record of bids which can be exported for regulatory reporting purposes.
Providers have indicated that having all policies from all sources on a single platform would be very beneficial for them in terms of efficiency and time management. It would allow them to search for and identify policies that would be of interest to them based on specific criteria (insured age, carrier rating, LE length etc.) thereby allowing them to focus on auctions where they believe they can be most competitive.
Tertiary sellers and buyers have indicated that they would welcome a platform where they can access as wide a market as possible to both list their own policies and find policies that might fit their purchasing criteria.
Key drivers in the development process have been simplicity, confidentiality, security and efficiency and should bring the following benefits:
- For sellers: Quick and easy auction creation enabling policies and their supporting documentation to be in front of buyers as soon as the seller wants them to be. Notifications received for all bidding activity and auction status.
- For buyers: No missed opportunities with alerts for new auctions and those soon to end and for document uploads, meaning all interested parties have access to the same information at the same time and therefore the same timeframe to view and bid on auctions. LPA also allows for easy bidding with automatic up-bidding, if desired, and automatic notifications of highest bid or outbid status.
- For everyone: Included for all accounts is an inbuilt ticker for visible live updates and easy click access to view a live auction. Secure messaging facility for communication between sellers and bidders. Personal dashboards also allow the user to keep track of watchlists and auction activity.
- For CG Analysts: A question that has been asked on numerous occasions is ‘what’s in it for CG Analysts?’. The answer is simple: exactly the same as for everyone else – a transparent and level playing field for the whole life settlement community.
LPA will be accessible 24/7 and, being time-zone friendly, will operate in users’ local time ensuring that all activity is seen with local timings, regardless of location.
Confidentiality, risk compliance and data security are of paramount importance in the development process. To protect all data held on the system, LPA operates at 256-bit encryption and has multi-factor authentication built-in. All activity on LPA is date and time stamped and recorded within the case file for audit purposes.
Access to LPA will be simple with free registration and no membership, signup or transactional fees. Once registered, users will be authorized to view information relating to, and overviews of, each policy available for sale (subject to regulatory restrictions pertaining to the secondary market). All bids will be made directly through LPA and the amount (but not the bidder) will be immediately visible to all other auction participants. To ensure legislative compliance, all Provider account holders will be required to declare the states in which they are licensed as secondary market policies will only be visible to Providers who have confirmed their license status in the seller’s state.
Anyone interested in having an account on LPA can register their interest now. For information or to request an account on LPA, simply email support@lifepolicyauctions.com or visit https://lifepolicyauctions.com.
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