Paid out: Rising interest rates and medical expenditure are set to benefit the industry

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...purchase to read more.

Industry Statistics & Market Size
Revenue
$650m
Annual Growth 12-17
-1.2%
Forecast Growth 17-22
Profit
Employment
1,256
Businesses
316
Market Share of Companies

Industry Threats & Opportunities

  • Lowered interest rates throughout the bulk of the period are expected to decrease industry revenue
  • The majority of people who opt to sell their structured settlements do so to pay off various bills
  • Industry operators spend heavily on compensation and benefits
  • Industry Report - Industry Investment Chapter

    The Settlement Funding Companies industry has a low level of capital intensity. IBISWorld estimates that for every $1.00 spent on wages, the industry will allocate $0.09 to capital investment. The industry's level of capital intensity has decreased slightly over the five-year period, as the industry allocated $0.10 in capital expenditure per dollar in wages in 2012. Indicative of this low level of capital reliance, industry operators expend heavily on compensation and benefits.Given the benefits derived from scale, the industry's larger players tend to maintain lower ratios of wages to revenue. Yet, these same players also tend to have higher average wages, indicating their focus on retaining key talent. How...purchase to read more.

    Additional Insights for the Settlement Funding Companies Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Settlement Funding Companies Industry are

  • Prompt delivery to market
  • Having a good reputation
  • Must comply with government regulations
  • IBISWorld analysts also discuss how external factors such as Number of vehicle accidents and Yield on 10-year Treasury note in the Settlement Funding Companies industry impact industry performance..

    shopping_cartPURCHASE OPTIONS

    What's in this report

    What is the Settlement Funding Companies Industry?

    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.

    Industry Products
  • Auto accident settlement financing
  • Medical malpractice settlement financing
  • Products liability settlement financing
  • Presettlement funding and other settlement financing
  • Industry Activities
  • Purchasing auto accident structured settlements
  • Purchasing medical malpractice structured settlements
  • Purchasing products liability structured settlements
  • Purchasing wrongful death structured settlements
  • Purchasing workers' compensation structured settlements
  • Providing presettlement financing
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Number of vehicle accidents
  • Yield on 10-year Treasury note
  • Per capita disposable income
  • Total health expenditure

  • Current Performance
  • Impact of interest rates and claims frequency
  • Product and market trends
  • The J.G. Wentworth Company
  • Chart: Revenue Growth

  • Industry Outlook
  • Industry factors of production
  • Regulatory landscape
  • Table: Settlement Funding Companies Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Settlement Funding Companies Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers

  • Key Selling Industries
  • Commercial Banking

  • Products & Services
  • Auto accident settlement financing
  • Presettlement funding and other settlement financing
  • Medical malpractice settlement financing
  • Products liability settlement financing
  • Chart: Settlement Funding Companies Industry Products and Services Segmentation

  • Demand Determinants
  • Interest rates and consumer wealth
  • Frequency of personal injuries and other claims

  • Major Markets
  • Individuals needing to pay bills
  • Other individuals
  • Individuals looking to start a business
  • Individuals performing home improvement
  • Individuals paying for education
  • Individuals purchasing a home
  • Chart: Major Market Segmentation for the Settlement Funding Companies Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Interest expense and the provision for losses on finance receivables
  • Wages and depreciation
  • Marketing and other expenses
  • Chart: Cost Structure Benchmarking – Sector vs Settlement Funding Companies

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Settlement Funding Companies Industry

  • Industry Globalization
    The J.G. Wentworth Company,
  • Table: The J.G. Wentworth Company - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Settlement Funding Companies Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Settlement Funding Companies Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Wages (2008-2022)
  • Yield on 10-year Treasury note (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Annuity
  • A form of insurance or investment providing the recipient a series of payments.
  • Pre-Settlement Financing
  • Used to provide funding to the plaintiff in a lawsuit prior to the case being resolved.
  • Structured Settlement
  • A legal settlement paid out as an annuity as opposed to a lump sum; this settlement typically provides tax advantages to the recipient.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Industry Market Report on Settlement Funding Companies is a comprehensive guide to market size and growth prospects. Ensure due diligence in your research with our strategic analysis of the factors influencing companies, including new product developments; economic, lifestyle and demographic influences; distribution and supply chain factors; and pricing issues.

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    This report on Settlement Funding Companies:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Settlement Funding Companies market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Settlement Funding Companies, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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