by John Darer CLU ChFC MSSC CeFT RSP CLTC
Structured settlement annuities had a RECORD 4th quarter of 2022, as increasing awareness of rising interest rates looking good against a volatile stock market, plummeting crypto and hard work by industry members, catapulted industry production to close to its all time record achieved in 2019.
The structured settlement primary market produced $779.5M in December 2022 to end Q4 2022 with $2.075B in production. The total for 2022 was $6,037,899,790 according to industry sources. The number does not included non qualified strucured settlement products.
- The industry placed $2,090,161,453 of premium in Q4 totaling $6,037,899,790 for the year.
· This represents an increase of $939,304,942 or +81.6% Q4 YOY
· YTD this represents an increase of $1,807,552,714 or +42.7%
- Industry case count totaled 5,979 in Q4, totaling 21,341 for the year.
· This represents an increase of 1,526 cases or +34.3% Q4 YOY
· YTD this represents an increase of 1,843 cases or +9.5%
- Average case size was $349,584 in Q4, averaging $282,925 for the year.
· This represents an increase of $91,139 per case or +35.3% Q4 YOY
· YTD this represents an increase of $65,961 per case or +30.4%
How Structured Settlement Industry Was Affected in Covid Era
Despite a return to structured settlement production highwater mark to the north of $6B in 2018 and the all-time record in 2019, the rapid deceleration in interest rates in the early part of the Covid-19 pandemic, together with court closures that constricted the supply line of cases coming up for trial, played a role in the drop in structured settlement industry wide production.
Last updated February 19, 2023