Uninsured RX

The report discusses how independent distributors use their own websites. It also examines how independent distributors use Internet-based services provided by product providers, and how the Internet can become a key tool to provide independent distributors with consolidated product and client information at a market level. While for life insurance the Internet is not an immediate threat to independent financial advisers, it was investigated how the Internet impacts their activity and their relationships with customers and product providers.

It appears that some life insurance companies are being targeted by investment firms that wish to make money by creating a "mortality arbitrage". Typically, this is accomplished by taking advantage of the targeted company's underwriting procedures, which are constrained by legal and economic forces. This arbitrage most often takes the form of a block of policies that have been included in a life settlement vehicle created by the investment firm. The article reports that these blocks of policies will be candidates for life settlements a year or two after issue.