FORT WASHINGTON, PA — Coventry has announced the release of an independent academic peer review that backs up its internal findings regarding life expectancy estimates from Lapetus Solutions, Inc. The review confirms that Lapetus’ estimates are consistently shorter than those from other leading providers, potentially leading to inflated asset values and investor losses.
The peer review was conducted by Daniel Bauer, a professor of Risk and Insurance at the Wisconsin School of Business, and Nan Zhu, an associate professor of Risk Management at the Smeal College of Business, Pennsylvania State University. Their goal was to validate Coventry’s initial analysis, which found that Lapetus’ life expectancy estimates were shorter in approximately 85% of cases by an average of two-and-a-half years.
“Our comprehensive review started by independently reproducing the results of the Coventry study, which our analysis validated,” Bauer and Zhu stated. They conducted two additional studies to further verify the findings. The first looked at differences in life expectancies based on age cohorts and found that Lapetus estimates were consistently shorter, ranging from 78% to 89% of cases. The second study adjusted for the timing of the report dates, finding that Lapetus estimates were shorter in about 83% of cases by an average of 29 months.
Alan Buerger, Coventry’s Executive Chairman, praised Bauer and Zhu’s work. “By testing Coventry’s conclusions and doing their own studies, Drs. Bauer and Zhu have performed a valuable service to our industry,” Buerger said. “The health and integrity of the life settlement market depends on having credible life expectancies that investors can use with confidence.”
Both the peer review and Coventry’s original study are available for viewing.
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