Despite 40+ years of proof that structured settlements significantly benefit both parties with universal applicability for personal injury claims regardless of the line of business, they have been traditionally financed less than 5% of eligible dollars.
We launched Chronovo five years ago to change all that.
These missed opportunities arise from several issues. The most glaring flaw in the structure industry is the lack of clear education of all those who participate in claim settlements. Part of that knowledge gap is the belief that structures are more of a hassle than they are beneficial to the successful settlement of a claim. Frankly, because some brokers “cherry-pick” only the largest cases and delay their involvement in the claim to curtail their expenses there is some validity to this perception. But that’s a function of the broker, not the product itself. Structures are not to blame. They can be invaluable—when presented in the right way, by the right team, and with a focus on what’s best for your caseload, not the broker and an outdated business model.
Since day one, Chronovo has been laser-focused on educating our clients on the invaluable possibilities of structures as well as offering them an organization that maximizes their full potential for all parties. We have not only trained thousands of claims professionals to understand the value of structures for their benefit, but also clarified their value for the injured individual—from financial security to tax-exempt growth to preserving eligibility for needs-based government assistance programs. We welcome the opportunity to strategize early and stand arm-in-arm with any claims professional that wants us at the settlement table to clarify the details of how a structured settlement makes sense for everyone. Claims professionals quickly appreciate our experienced brokers’ ability to provide expertise and talking points to common objections from injured parties or their attorneys. And here’s the kicker; it costs nothing, zero, zilch, nada, to work with Chronovo.
The good news is that capable law firms, TPAs, and claims organizations can easily implement an integrated, highly successful structure program into their claim resolution process with the right broker partner. They just need an employer that makes it personal—that is engaged, committed, and collaborative. Astute, “first dollar”, large employers, and self-insureds bring focus and visibility to the 30% to 40% savings structures can deliver. They know the juice is worth the proverbial squeeze. They empower a broker partner with the technology, talent, and service model to help make it happen.
Smart employers also recognize when there is an opportunity to leverage their relationship with the employees to promote the advantages and dispel the myths of structures to realize significant financial benefits. The best employers recognize both the tangible and intangible benefits of structures and are willing to take on the effort to realize the critical advantages for themselves and the injured employee.
From a practical, hands-on perspective, structures must be included in the earliest settlement outreach conversations. The sooner the better. Why? When structures are raised at the 11th hour, they are commonly disregarded as a last-ditch “gotcha” by the employer or their representatives. Eventually, if discussed early and well-executed, requiring structures can become an effective, industry reputation for the employer. Standing firm on the use of structures in negotiations is also critical. Of course, flexibility for “cash-outs” under the right circumstances should be expected, but that should be the exception, not the rule.
In addition, programs with early involvement and bright-line requirements, like our partnership with ESIS, can drive dramatic success:
- Effortless, early collaboration: Leverage automatic referrals to the broker by the vendor in every MSA, Life Care Plan, and Medical Cost Projection produced for you. No work for the adjuster. All savings.
- A requirement of settlement: Consider requiring that a structure be included in any request for your settlement authority over a low threshold (i.e., $20k) clarifies value and validates the process.
- Counsel panel membership: Consider leveraging a minimum percentage of settlements with structures for all the members of your defense counsel panel (i.e., 60%)
- Service Level Agreements and Measurements: Many brokers lack the capacity or technology to provide you with key performance indicators let alone the conviction to commit to those standards. We welcome that as much as you should because what gets measured is what gets done.
If you’re not leveraging structures as an integral aspect of your claim resolution process, you’re missing out. Make it personal. Start reducing your settlement costs by 1/3 and give injured employees the security they and their loved ones deserve.
We at Chronovo would like to discuss how we can help make structures work effectively for your program. Please contact us at firstname.lastname@example.org.