FintechTV’s Remy Blaire welcomed Jay Jackson, chairman and CEO of Abacus Global Management, for a wide-ranging discussion on the evolving world of financial management and longevity. As an alternative asset manager focused on longevity-based assets, Abacus has carved out a distinct position in financial services through its data-driven approach and specialized insurance market strategies.
Abacus Global Management operates within the life insurance market, overseeing nearly $3 billion in assets. The firm focuses on uncorrelated investments supported by advanced data analytics, allowing it to lead a niche often overlooked by traditional financial players. Jackson emphasized the scale of the life insurance industry, which carries an estimated value of $14 trillion, roughly 2.5 times the size of the U.S. residential real estate market. Despite that scale, he noted that roughly 90% of life insurance policies go unpaid because policyholders surrender them without fully understanding their market value, a disconnect Abacus aims to address.
What sets Abacus apart, according to Jackson, is its role as both an originator and a market maker in life insurance asset management. Beyond calculating the net present value (NPV) of life insurance policies, the firm collects real-time medical data from clients, allowing for more precise assessments of longevity and policy viability. This data-centric model enhances revenue potential while fundamentally reshaping how clients interact with insurance-backed financial strategies.
Jackson contrasted Abacus’s approach with more traditional investment frameworks, which he described as overly generic. Longstanding models such as the 60/40 portfolio often fail to account for a critical variable, how long an investor is likely to live. Jackson stressed that longevity is central to meaningful financial planning. By incorporating health and lifespan data, Abacus develops tailored, longevity-based strategies designed to support more informed and personalized investment decisions.
Technology also plays a central role in expanding institutional access to mortality and longevity data. Jackson pointed to outdated systems that have historically resulted in costly errors, including instances where the Social Security Administration issued payments to individuals who had already passed away. Abacus addresses this gap through systems capable of identifying deaths within 48 hours. These tools offer value to institutions managing pensions and insurance portfolios, while also providing individuals with clearer insight into their financial planning.
Jackson acknowledged that opportunity in this space comes with risk. Abacus remains relatively under the radar within the broader financial sector, despite posting triple-digit year-over-year revenue growth and operating margins reaching 60%. As a small-cap firm progressing toward mid-cap status, the company faces potential volatility. Jackson noted, however, that consistent revenue performance helps offset that risk and supports long-term confidence in the model.
As conversations around wealth transfer and generational longevity gain momentum, Jackson underscored the need for financial planning to evolve with current demographic realities. People are living longer, yet savings rates in the United States are near historic lows. Jackson argued that a deeper understanding of lifespan-based data is essential to reshaping how financial advisors engage with clients and how individuals think about their long-term financial security.
Jackson and Abacus Global Management are positioning themselves at the center of a data-driven shift in financial planning. By applying longevity insights at scale, the firm is working to unlock new value for both institutions and individual investors. As Abacus prepares to introduce new initiatives, its approach signals a potential transformation in longevity-based financial management, one that could save institutions millions while giving individuals greater clarity and confidence in planning their financial futures.