Life Settlement Brokers Feel Threatened in Forbes.com article

Life settlement brokers sent out the first salvo at Amrita Financial on July 22, 2009. On that day, Forbes.com published an article entitled "Ways You're Getting Ripped Off". This article featured many different industries and rip offs, but at the top of the list was life settlements. Forbes.com didn't question the need for a life settlement or their legitimacy in the marketplace, rather the reporters focused on the opaque nature of life settlement transactions and unusual compensation structure for life settlement brokers.

Traditionally life settlement brokers are compensated with a % of the face value rather than the settlement amount of the policies they broker. As one can imagine this leads to a removal of the incentive to negotiate the highest settlement amount possible. Many states have recognized this and have instituted laws that require the commission to be based on the settlement amount. However, many life settlement brokers refuse to work with life settlement providers that require full disclosure of life settlement offers and life settlement broker commissions. In part because, some life settlement brokers suppress bids from life settlement providers that pay a lower commission. In addition, some life settlement brokers don't work with some life settlement providers that require full disclosure of commissions. Why do I say this? Because life settlement providers have told us time and time again this is what they deal with from life settlement brokers out in the marketplace.

So what does this have to do with Amrita Financial and Forbes.com? These very issues were the impetus for Amrita Financial. We were well aware that these issues were common and decided legislation couldn't be relied upon to fix the problem. However we were confident that these issues could be addressed through enterprise, innovation and the free market. We decided to create a system that ensured policy sellers could not be duped and always had access to the information they needed to make the best financial decision. That is exactly why Forbes.com noted Amrita Financial as the best way to evaluate, appraise and transact a life settlement. Forbes.com acted in an independent and unbiased manner when evaluating the life settlement industry, life settlement brokers and Amrita Financial. Their analysis of the life settlement industry drew the same conclusions we at Amrita Financial have known for a long time. They concurred that access to information was the best answer. As a result, they looked upon the Amrita Financial electronic platform as an obvious choice that brings more value to consumers.

Through comments posted on Forbes.com, life settlement brokers took issue with the article, saying that life settlement brokers don't have a conflict of interest. The issues are overstated or legislation has already addressed any issues. Comments went onto blame Forbes.com for factual inaccuracies and collusion with Amrita Financial.

We are quite proud to report that there was no collusion and the article's facts were accurate. Forbes.com stated what everyone has known for a long time; Life settlement brokers don't always put their clients' interests first. Some do, some don't. Amrita Financial was established as an alternative the life settlement broker and mechanism to empower consumers to make more informed, better choices. Forbes.com reporters figured that out on their own. We didn't have to pay the reporters for them to conclude the obvious. Life settlement brokers have a long a way to go towards improving their system and Amrita Financial is the first step.

It is interesting to note that several positive comments were posted in response to the article. They came from financial planners, consumers with life settlement experience and others besides life settlement brokers touched by the industry. Their feedback was overwhelmingly positive saying Amrita Financial's unique approach was a breath of fresh air and welcome in the marketplace. In particular the transparency, efficiency and life settlement appraisal tool were noted as highlights of the Amrita Financial platform. So when we look at the article and question motivation for the information there or in the comments, it is no surprise that those with the most to lose, namely life settlement brokers, are the biggest critics of any improvements that help consumers. Our philosophy has always been to put all of the cards on the table and let the consumer choose. We do that everyday, but I can't say the same for most life settlement brokers.

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