Reduce claims reserves. Shifts the risk and reserves to another entity with strong financial strength. Reduce administrative costs. By settling the disability claim, the expense and time required to administer payments is eliminated, as well as the case load for adjusters. Pass on the investment and reinvestment risk.
Structured settlements can eliminate the risk of changes in investments or interest rates.
A structured settlement meets the needs of many companies facing an environmental cleanup challenge. A structured settlement can remove accounting and financial reporting requirements, improve investor relations and image, and allow for a current tax deduction of future cleanup costs. When future contingent liabilities are removed, no further disclosure is necessary. The avoidance of any negative impressions of environmental claims improves investor relations and corporate image. The company can obtain a current tax deduction for future environmental cleanup costs when making a payment into a Qualified Settlement Fund which funds the cost of future cleanup.