by John Darer® CLU ChFC MSSC RSP CLTC
I don't know if the moon is once again in the 7th house or if Jupiter will align with Mars, but yesterday I "crossed the road" to participate in a primary and secondary structured settlement market joint industry panel at the Venetian hotel in Las Vegas and found some reason to be encouraged.
The occasion was the annual meeting of the National Association of Settlement Purchasers (NASP) and my co-participants were:
Peter Vodola, Esq. Partner, Seiger Gfeller Laurie, LLP
John Darer® CLU ChFC CSSC RSP President 4structures.com, LLC
Craig Lessner, Esq. Senior VP and General Counsel Peachtree Settlement Funding
Matt Bracy, Esq, General Cousnel of NASP and Settlement Capital
Patrick Hindert, S2KM and TSSG
Jeremy Babener, JD, in his capacity as an author and observer
Tim Morbach, Director of Sales TSSG
Richard B. Risk, Jr. JD, CSSC, RSP, lawyer and former structured settlement broker
Panelists were asked to offer their opinions on topics such as
- Why structured settlement industry production was down a purported 20%?
- Impact that the 2008 and ongoing financial crisis have on the primary market?
- The financial planning consulting structured settlement business model and what it means for annuities and factoring
- What issues do annuity issuers and obligors see as problematic relative to the secondary market?
- What can the secondary market do to assist in the improvement and growth of the primary market?
- Structured settlement securitizations
- Qualified Settlement Funds.
As a personal observation I thought the diverse panel composition promoted an effective and engaging discourse that I enjoyed. Both counterweights, Pete Vodola and I, had to leave before the end of the program to catch flights so I'm interested to hear what how it all ended.
Patrick Hindert looked dressed for bear, with his jar head buzz cut. He told me beforehand that he planned to really slam NSSTA and he didn't disappoint
But some who attended would not appreciate the irony that almost at the same time that the "thundering herd" of two" Hindert and Dick Risk in succession, rumbled into tirades about outdated structured settlement industry business practices, the NSSTA program going on over at the Bellagio was dealing with the "right here, right now "of e-marketing. Moreover, some colleagues of both Risk and HIndert in the Society of Settlement Planners regularly use a negative marketing approach based on information that too is many years out of date.
In response to the "business 20% down" question, Hindert chose to emphasize the recent Spencer v Hartford settlement which Risk participated in as part of the legal team. Then Risk opined that the industry is shackled to a 30 year old business model.
At that point I had to grab the microphone and remind the audience that my comments were at least offered as someone who is actively participating as a settlement consultant in the primary market. Despite having a son in the business, Risk's "30 year" comment simply showed, three years after he chucked his insurance license, just how out of touch he is with what is actually going on, in my opinion.
It's time for these "grumpy old men" to belt up and offer a different message, or at least consider delivering the message in a different way.
For Risk to make a blanket statement and fail to acknowledge that there are some very fine settlement planning practitioners, settlement consultants and industry visionaries who are not members of the SSP is disingenuous.
Pete Vodola weighed in an offered his observation of anecdotes where primary market sources experienced stable or even improved production.
"Veteran"Tim Morbach discussed the settlement planning approach that he's always used . Morbach shares my vision that the secondary market offers potential opportunities to primary market participants and their clients as part of a blended solution. I challenged the NASP members in attendance to help create a viable solution to fund the short term gap where primary market structures are currently less competitive
The panel was also a learning experience for me. I learned that one of the primary markets (no longer writing structures) is requiring that a second court order be obtained to essentially reaffirm a structured settlement transfer when an annuitant dies. More on this in a later post when I receive the papers from the source of the information. Consider the amount of time that might pass between the date of the transfer and the date of death and the added costs to the transaction.
To the NSSTA members reading this I hope you will continue to follow my ongoing commentary on the secondary market with an open mind.
Comments