The secondary life market may bring some benefits for UK consumers, but important questions still need to be answered around safeguards, governance and outcome monitoring, according to the Protection Distributors Group (PDG).
Its statement came in response to discussions in the protection market following the launch of a new UK proposition by We Buy Life Policy (WBLP). The firm targets policies that would otherwise be lapsed, providing a lump-sum payment to clients, as well as commission to advisers. In exchange, WBLP becomes the beneficiary and pays the premiums of the sold policies. WBLP has a historic offering in the US, but this year witnessed its first foray into the UK market. The PDG said it "did not oppose the principle of a secondary market for life insurance policies" in instances where life c...
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