Industry
Confidence in Voluntary Market is Up Again
According to a Survey by Eastbridge Consulting Group
AVON,
CONNECTICUT, USA (January 11, 2007)
The
latest results of Eastbridge Consulting Group’s Voluntary
Industry Confidence Index survey show that those in
the industry are more positive about the future for the
industry in 2007 than in 2006. According to the survey,
the index is at 102.3, which is an increase over the mid-year
2006 results.
The
study is conducted semi-annually and includes responses from
individuals active in the market—carriers, brokers,
and vendors. Like other confidence indices, the Voluntary
Industry Confidence Index is a single number that compares
the current results to a baseline measure. The first Confidence
Index survey was completed in December of 2005; the
results from that survey serve as our “base” year
(meaning the index was at 100 for that year). For mid-year
2006, the index was at 101.2.
“The
increase in the index to 102.3 today is largely due to the
more positive results (based on means) for the industry’s
sales expectations for the next 12 months,” says Gil
Lowerre, president of Eastbridge. Survey respondents were
very positive about the outlook for voluntary product sales
with over 98 percent expecting sales to increase over the
next 12 months. Twenty-eight (28) percent believe that sales
will
“increase a lot.”
“The
market is also more positive about their expectations for
profitability,” adds Bonnie Brazzell, vice president.
When asked if voluntary carriers will be more profitable
12 months from now, 43 percent of the respondents answered “a
little more” profitable. “This was slightly higher
than the 40 percent from the mid-year survey,” notes
Brazzell. Another 10 percent expect the industry to be “much
more” profitable. The total percentage of respondents
expecting higher profitability was 53 percent, the highest
percentage of any of the Confidence Index surveys.
Employee
enthusiasm regarding voluntary (another component of the
index) was stable and showed no significant change in the
most recent survey.
The Voluntary
Industry Confidence Index report is available only
to Eastbridge Insight and Information Partner companies
as well as to participants. The survey will be conducted
again in July of 2007. For more information on becoming
a participant, contact the company at info@eastbridge.com.
Eastbridge
Consulting Group, Inc. is a marketing advisory firm serving
insurance and financial services organizations in the United
States and Canada.
|
