Obama Plan Could Boost Revenue From Life Insurers: UBS

A positive for the industry could come from the proposed increase in tax rates for upper-income Americans, “which could help demand for tax-advantaged policies,” according to a note to investors by Andrew Kligerman, an analyst for UBS, New York.

Kligerman says an administration budget proposal to limit tax avoidance on life settlement arrangements would hurt life settlement firms, but he believes that strikes a positive note for life insurers’ policy margins, which are partly supported by lapse rates.

http://www.lifeandhealthinsurancenews.com/News/2010/2/Pages/Obama-Plan-C...