What’s happening?

Structured settlement annuity rates have been declining for months. This is amazing news for carriers and self-insureds as it dramatically increases their purchasing power and savings on structures to settle claims.

For example, Chronovo quoted a case in December 2021 in which the proposal outlined $16k annually for 35 years, for a total tax-free payout of $560k for a cost of $310k  When re-quoted in early May of 2022, the exact same benefits to the claimant cost only 280k.  This translates to better rates delivering $30k (another 9%) in additional savings for a total of $280k in savings (50%) over a lump sum to fund the exact same benefits to the claimant.  And there are many, many more examples!

Why is it happening?

While there are multiple, complicated reasons the markets are behaving the way they are with COVID and the war in Europe, there is a straightforward, inverse relationship between rising interest rates that drive the 10-year treasury index and the costs to purchase tax-free structured settlement annuities.  When these rates are low; structures are a great idea. When they are high; structures are amazing for you and the injured individual—especially when combined with additional growth features!   

How does this help me?  

There are two principal ways we can take advantage of the current structured settlement annuity rate environment on your behalf—and to your client’s or employer’s benefit–as a claims professional:

 1) Offer the same benefits as before at less cost,

2) Offer more benefits to the claimant for the same cost, and/or;

3) Blend the two to get savings while providing more benefits.

Any of these scenarios provide more leverage and flexibility by increasing your purchasing power in the settlement process.  The combination of some savings and more benefits often drive even more effective negotiations—which we clarify and explain to all parties without any extra work from you.

 What’s the Headline?

 While there are many compelling features to structures, it’s been a couple decades since the rates have helped this much to “bridge the gap” between settlement demands and offers during negotiations!

The example above illustrates the power of using tax-free structured settlement annuities to help evaluate, negotiate, and settle claims.  We can quickly assess the specifics for you in just a few minutes.  These rates will not last forever and when combined with the value of structures in a tumultuous market for an injured individual—structures are even more compelling.

Please let us know of any cases that are in negotiations, heading to mediation, or that have had previous proposals done for settlement discussions. We would be glad to analyze and prepare customized proposals to see how much extra savings we can currently offer.    Just reach out to us at or call Mike Hernandez at (909) 767-8318 or