Settlement Funding Companies
The Federal Reserve's expansionary policies in regard to interest rates has harmed revenue for the Structured Funding Companies industry over the five years to 2017. Industry operators function in both the secondary market for structured settlements and the market for the provision of presettlement financing. In general, industry operators purchase structured settlements from individuals seeking additional liquidity. When investors purchase annuities when interest rates are high, earnings sourced from these products tend to increase. In addition to increased investment gains, specifically for structured settlement products, these higher earnings are not taxed for most personal injury cases. Rising interest rates and medical expenditure are set to benefit the industry over the five years to 2022.
This industry purchases structured settlements in the secondary market from individuals, providing customers with cash in exchange for several fixed scheduled future payments. Industry operators also transact with plaintiffs with pending personal injury claims to provide funds while they are awaiting settlement, earning a portion of the settlement proceeds of the claim.
This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.
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