VIF monetisation for life insurers - key drivers and considerations

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By Scott Mitchell, Dominic Clark | 09 November 2012

The value-of-in-force business (VIF) is a concept used within insurance that essentially refers to the future profits expected to emerge from a particular life insurance portfolio.

There are numerous potential benefits of VIF monetisation for life insurers, and in recent months there has been an increase in the interest for such arrangements in some countries. There is a varied approach to structuring these transactions and this is driven by the specific objectives of the parties involved. These objectives are important to understand prior to embarking on such an arrangement. This short paper explores the topic in a practical context and considers the potential benefits for life insurers.