by John Darer CLU ChFC MSSC RSP CLTC
Is there a significant shift in investor perception of insurer safety afoot?
It may surprise some but individuals buying structured settlement payment rights appear to be willing to put up their capital and accept a transfer of payment rights to earn the same rate for a stream of payments from American General Life Insurance Company or AIG Life Insurance Company as they would from higher rated annuity companies like John Hancock Life Insurance Company , or Metropolitan Life Insurance Company. Whatever gap still exists between investor confidence and tort victim or attorney confidence, perhaps that is beginning to close.
As an aside, in force "annuity" payment rights deals that being advertised today would pay such investors 7% for income streams ranging from 12.5 to 25 years. Note that such rates are taxable and thus are commonly purchased by attorneys and other investors for their qualified pension plans.
A discussion has been started to vet the applicability of such deals for tort victims with the goal of establishing market place standards for this rapidly evolving area.
An upcoming video series on Legal Broadcast Network (to also be aired here) explores and provides important information about this marketplace featuring this author John Darer and interviews with a major wholesaler of these deals to individuals, as well as Matt Bracy, general counsel of Settlement Capital Corporation.