The 2018 Structured Settlement Production Report – Part 1

This is part one of a five part series regarding the 2018 Structured Settlement Report - be sure to read parts II, III, IV and V.

 

Following a sales decline in 2017, annual structured settlement annuity sales increased in 2018 to $6.02 billion (based upon 26,227 cases with an average case size of $229,511) according to an industry report compiled and recently distributed by Melissa Price, Ringler’s Chief Strategy and Business Development Officer.

A time for celebration or cause for concern? It depends on your perspective.

2018 sales totals represent the first time since 2008 the structured settlement market has reported annual annuity premium in excess of $6 billion and an increase of 8.45% over the 2017 totals.

Note: the 2018 reported numbers include only NSSTA annuity providers. Independent Life entered the structured settlement market as a de novo company April 23, 2018. We joined NSSTA in 2019. Therefore our 2018 annuity premium sales are not included in the 2018 Industry Report.

The 2018 numbers also compare favorably with similar sales totals for prior years since 2008:

  • 2018 - $6.02 billion
  • 2017 - $5.55 billion
  • 2016 - $5.80 billion
  • 2015 - $5.35 billion
  • 2014 - $5.25 billion
  • 2013 - $5.13 billion
  • 2012 - $4.82 billion
  • 2011 - $4.97 billion
  • 2010 - $5.52 billion
  • 2009 - $5.38 billion
  • 2008 - $6.23 billion

These increases represent considerable effort and success by NSSTA annuity providers as well as many structured settlement professionals and personal injury settlement planners. Among other explanations: NSSTA formed a Growth Committee (since renamed “Innovation Committee”) in 2015 and its leadership has focused more attention in recent years on external marketing rather than industry conflicts.

Melissa Price’s Industry Production Report, however, includes industry annuity data beginning in 2002 – with earlier premium numbers based on estimates by the co-authors of “Structured Settlements and Periodic Payment Judgements”. Viewed from the perspective of 2002 (17 years ago), when annual structured settlement annuity sales totaled $6.14 billion – exceeding 2018 annual sales by $120 million – the 2018 structured settlement annuity premium results look somewhat different.

Here are the structured settlement annuity sales numbers in Melissa Price’s Report for years prior to 2008:

  • 2007 - $5.998 billion
  • 2006 - $6.11 billion
  • 2005 - $6.13 billion
  • 2004 - $6.14 billion
  • 2003 - $5.97 billion
  • 2002 - $6.14 billion
  • 2001- $6.0 billion
  • 2000 - $5.0 billion
  • 1999 - $4.0 billion
  • 1998 - $3.55 billion
  • 1997 - $3.75 billion
  • 1996 - $4.0 billion
  • 1995 - $3.8 billion
  • 1994 - $4.0 billion
  • 1993 - $4.0 billion
  • 1992 - $3.6 billion
  • 1991 - $4.0 billion
  • 1990 - $3.9 billion
  • 1989 - $3.75 billion
  • 1988 - $3.6 billion
  • 1987 - $3.3 billion
  • 1986 - $2.9 billion
  • 1985 - $2.5 billion
  • 1984 - $2.0 billion
  • 1983 - $1.3 billion
  • 1982 - $900 million
  • 1981 - $575 million
  • 1980 - $350 million
  • 1979 - $150 million
  • 1978 - $40 million
  • 1977 - $15 million
  • 1976 - $5 million
  • 1975 - $0

Celebration or cause for concern? It depends on your perspective.

Subsequent articles in this five part Chronicle series will: 1) provide additional data from the Melissa Price Report, 2) highlight major industry trends, disruptions and distractions which has caused a regressive sales cycle and 3) also identify and address some of the strategic questions the industry should be asking.