NSSTA 2008 Fall Meeting - 3

S2KM's two previous blog posts about the NSSTA 2008 Fall Meeting recommended:

• Current structured settlement industry leaders should focus on "transitional leadership" .
• Transitional industry leaders should promote settlement planning as a successor business model for the traditional claim management structured settlement business model. 

This S2KM blog post highlights industry issues the next generation of structured settlement leaders will need to address:

• Transparency - For the structured settlement market to improve and grow, strategic discussions must be open and online. Key components of the structured settlement transaction must become transparent. Transactional transparency must feature compensation disclosure and recipients' informed consent.
• Public policy - The structured settlement industry needs to re-examine and re-define structured settlement public policy taking into consideration IRC 468B, IRC 5891, HIPAA and the state protection statutes - as well as other related government benefits such as Medicare (set-aides) and Medicaid (special needs trusts).
• Business model - What are the differences between a claim management model (AIG; DOJ) and a settlement planning model (still being defined and developed)?
• Funding model - The historic industry model is the IRC section 130 Qualified Assignment. The future settlement planning model includes IRC 130 Qualified Assignments - but also Qualified IRC 468B settlement funds, special needs trusts, Medicare set-aside arrangements, and settlement transfers.
• Product development - Where are the new products?  Why remain a one product industry? Traditional structured settlement leaders oppose settlement planning product development. They oppose 468B, settlement transfers and proposals for tax-free disability accounts - at least when such proposed tax-free accounts compete with structured settlement annuities.
• Educational model - to maintain continuing relevance and value, the current structured settlement educational model (including certification) must successfully transition to web 2.0 tools and learning technologies.
• Business standards - The next generation of industry leaders should study the AIG structured settlement model and AIG structured settlement standards as one example of a failed claim management model. Review also: SSP's recently published settlement planning business standards, NAELA's aspirational standards and the ABA's Model Rules for Professional Conduct. New leaders should shine a light on the DOJ's structured settlement program. Challenge the DOJ to justify its structured settlement program in the context of structured settlement public policy and public administrative costs and cost savings.
• Legislative model - To rally its constituency, the structured settlement "old guard" continues to rely upon the IRC 130 tax-reform bogeyman and the "bloody factoring flag" - looking backwards with nostalgia at the structured settlement world as it existed before the old guard "lost" the structured settlement transfer war of 2001. New structured settlement leaders should focus on the future of structured settlements -  improvement and growth taking account for the reality and importance of the secondary market. Use and promote 468B as your primary (standard) settlement planning mechanism. Focus on successfully integrating structured settlements with Medicare, Medicaid, Veterans benefits, and public housing. Use existing state structured settlement protection statutes to raise business standards for both the primary and secondary markets. Pay attention to how many ways state legislation and regulations increasingly impact structured settlements.
• Regulatory model - The structured settlement industry needs a regulatory strategy and model as much as a legislative strategy and model. Develop relationships and strategies with NAIC; NCOIL; NOLGA; CMS; SSA; IRS - in collaboration with other related professional stakeholder associations:  NSSTA, SSP, AAJ, NASP, NAELA, NAMSAP, ASNP and SNA plus disability associations such as AAPD.

S2KM prediction: 80% of the 2014 structured settlement leaders (Association Directors; Committee Chairpersons; regional and online meeting attendees) are not currently active members of either NSSTA or SSP.