"Obviously, the structured settlement broker with access to the most life companies will be in a position to offer a very competitive annuity price". Ringler Associates website July 13, 2009
The implication is that the company has access to the most annuity markets and therefore the most competitive price. But It's as much advertising fluff as the ubiquitous law firm advertisement that promises that you "will pay no fee up front" (i.e. it would be atypical for a personal injury firm to charge a fee up front).
- Back in "the day" there might have been a very brief period of time when a new market was introduced, before the product was rolled out to the industry, that Ringler and one or two others had a slight edge, but not now.
- Furthermore, the number of structured annuity issuer companies that offer A+ of better AM Best ratings is 7. Those with A++ ratings- 2. It's safe to say that most players have access to all markets.
- Furthermore, if Ringler (or any other broker making this puffed up claim) appears on the defense side of a case and the insurance carrier has a restrictive choice of life insurance markets you may get a very competitive price but perhaps not the most competitive.
- Furthermore, the best price is only one component of the structured settlement decision making process. As recipients and policyholders of Executive Life of California discovered, price is not everything.
- In today's environment, where plaintiffs and their law firms (1) typically have representation; (2) are more educated, access to the most markets would actually enhance diversification opportunities. But again Ringler's stable of markets is no different than most of the players in the structured settlement industry. Diversification opportunities however, don't always result in "the best price" as multiple issuers tend to average up the cost.
IF YOU'VE GOT ENOUGH YOU DON'T HAVE TO PUFF
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