Structured Settlement Buyers

Also known as Factoring Companies are the companies that purchase structured settlements.

Considerations regarding “In House” Programs and Factoring Transactions for the Casualty Insurer

Acknowledging these economics as well as the availability of relevant affiliated resources, many casualty insurers, and some self-insureds, have organized “in house” programs to capture and direct structured settlement claim dollars.  These internal structured settlement programs frequently include partnerships with affiliated and/or external brokers and product providers.  Internal structured settlement programs increasingly view claimants and their families as potential customers for financial and insurance products and services.  The Financial Services Modernization Act has accelerated the development of internal structured settlement programs among casualty insurers.  Few, if any, program specific or case specific performance metrics currently exist for structured settlements.

Regardless of their strategic and operational perspective, defendants and casualty insurers should now reconsider how factoring transactions impact their structured settlement programs and case management strategies.  Should they promote structured settlements?  Should they facilitate structured settlement factoring transactions?  Should they encourage and promote alternative structured settlement products?  How should they respond to claimant demands for expanded structured settlement payment rights?  Should they participate with claimants in seeking tax guidance on individual cases?

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