With court closures during the pandemic combined with industry turnover, adjusters and carriers are dealing with high case inventories, and both sides want to close cases in the most efficient way possible.
One way to accomplish that is to utilize structured settlement annuities, which have become even more valuable with the rise in interest rates.
Savings on worker’s compensation claims, especially Medicare Set-Aside costs, have been approximately 34% over the past seven years. Take, for example, an MSA report with a total cost of $645,985. When annuitized, this MSA can be funded for a cost of $388,210. That’s a definitive savings of 40%.
Savings on liability cases can be better defined with structured financing value (SFV). The SFV on a claim is the difference between the cost of the annuity and the guaranteed benefits it produces over time.