#USA #Tallahassee #Life Insurance #Coventry First #Lapetus Solutions

Coventry First's Stance on Lapetus Solutions' Confidentiality Claims

This week, Coventry First LLC, a prominent player in the secondary market for life insurance policies, issued an official response to efforts by Lapetus Solutions, Inc. to block the disclosure of legally mandated life expectancy audit reports. Coventry asserts that transparency is essential to maintaining integrity in the secondary life insurance market. In tandem with its response, Coventry filed its own motion for a summary judgment, arguing that Lapetus’ announced closure on August 31, 2025, negates any claims of commercial confidentiality.

The Importance of Transparency in Life Expectancy Estimates

The Florida laws stipulate that life expectancy service providers must submit audit reports every three years covering the accuracy of life expectancy predictions for the five calendar years leading up to each audit. These reports assess the accuracy of past predictions and do not contain proprietary methodologies used in making those predictions. Consequently, Coventry maintains that they should not be protected as trade secrets. Moreover, Lapetus has frequently claimed “accuracy” in its marketing materials, public statements, and in direct contacts with Coventry, further weakening its own case against the release of the audits.

"Investors and regulators need assurance that life expectancy estimates are accurate, reliable, and compliant with actuarial standards," stated Alan H. Buerger, Executive Chairman of Coventry. "Transparency protects investors and upholds the integrity of the entire secondary life insurance market. As a pioneer in this field, we remain committed to consumer rights and support stringent industry regulations."

The claimed closure of Lapetus is set to make assertions of commercial confidentiality moot, according to Coventry. In an email from August 18, 2025, S. Jay Olshansky, Lapetus’ Co-founder and CEO, confirmed that the company would cease all operations by August 31. Following this date, Coventry contends that the audit results will no longer qualify as commercial secrets since they will not be tied to any commercial activity or provide competitive advantages.

Risks of Underestimation in Life Expectancy

The stakes involved in accurately estimating life expectancy extend beyond this legal confrontation. Life expectancy is foundational in assessing the value of life insurance policies on the secondary market. Chronic underestimation of life expectancy can mislead investors, lead to significant losses, and undermine trust within the market. As emphasized by Chairman Buerger, independent academic analysis indicates that Lapetus’ life expectancy estimates were lower than those of peers over 80% of the time, with an actual-to-expected event ratio of just 31%, significantly below Lapetus’s claimed accuracy of 96.3%.

Regulators in Florida have recognized such dangers following the Mutual Benefits fraud scandal, which cost $800 million, where chronically low life expectancy estimates contributed to one of the largest financial frauds in state history. In response to this incident, state lawmakers decreed that life expectancy service providers must be registered with the Florida Office of Insurance Regulation (OIR) and submit regular audit reports.

About Coventry

Coventry has been a leader and creator in the secondary life insurance market for over 20 years. Through extensive experience and a strict commitment to consumer rights, Coventry stands as a market leader, enhancing industry standards and expanding consumer choices. To date, Coventry has returned over $6 billion to policyholders who no longer need their policies. More information about Coventry can be found at Coventry.com.