Berkshire, like Symetra and Allstate before it, has entered the factoring game. Unlike Symetra and Allstate, though, who jumped in all at once, Berkshire has opted for the slow creep. There is no difference between these players other than the way they’ve entered. The end game is the same. So why does Berkshire get a pass?

For the past couple of years Berkshire has acted primarily as a gatekeeper for annuitants seeking cash now providers. There’s no problem with that, and it’s certainly their prerogative, but last year they dipped their toe into the factoring waters of Texas as a special test market. Fast forward and they’re doing the same in a few other states. Really, it’s merely a matter of time until Berkshire is nationwide like the other insurance companies before them. I firmly believe this is a problem for one crucial reason: it’s a strong conflict of interest.

This conflict of interest centers around the fact that as the historical gatekeeper, it has a list of annuitants (read: customers), ready to go. This is the holy grail of any would-be player in the industry. Who doesn’t want a free list of people ready to go? Moreover, they’re not just prospective customers in some potential, hypothetical sales district, they’re existing customers, who aren’t protected by traditional consumer protections such as the TCPA because of their ‘existing customer’ status. In other words: they can, and likely will be contacted for ‘additional services’ when it’s nothing more than a veiled sales pitch from someone who already has their business in the first place. It looks like Berkshire is slowly but surely having their cake and eating it too.

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