by John Darer CLU ChFC MSSC RSP CLTC
There's simply no "Pulling the Woollams over their eyes" when it comes to the AIG structured settlement program, according to its President of Claims. Rick Woollams had alot to say in a comprehensive, frank and entertaining presentation titled "Structured Settlements and Claims" delivered to attendees at the Fall Educational meeting of the National Structured Settlements Trade Association at the Sir Francis Drake hotel in San Francisco California October 25, 2012.
A. According to Woolams, Chartis likes structured settlements because they are the right thing to do:
- Enable a match of recovery to need
- Help plaintiff avoid waste, fraud and squandering
- Enable plaintiffs to protect their futures.
B. Chartis is committed as an institution to its structured settlement program because it's the right thing to do, not because AIG's other subsidiaries offer structured annuities
Woollams expressed indifference as to whether structured settlements were placed with AIG subsidiaries or other companies on its approved list (such as Berkshire Hathaway, New York Life, Metropolitan Life, Allstate and Pacific Life) This has borne fruit in stable structured annuity premium throughout the years since 2008.
2008 $731MM
2009 $716MM
2010 $739MM
2011 $739MM
2012 $750MM estimated by year end
C. AIG has no tolerance for the risk that it might have to pay twice. There is zero appetite for transaction risk. Transactions must be done right the first time
D. Woollams believes in economies of scale. He believes that scale makes you better at what you do and enables you to afford better tools.
E. Woollams believes that Plaintiff-Defendant broker disputes (to the extent they still exist) are bad for structured settlement industry perception and stated that a stable operating model strengthens the industry.
The Real Estate model was cited as an example.
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