Press Release Archives
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Voluntary
industry expects worksite premium rates
to remain stable in 2007 according to the latest
Eastbridge Voluntary Industry Confidence Index
AVON,
CONNECTICUT, USA (January 24, 2007)
Half of the
respondents to the latest Voluntary Industry Confidence
Index study expect premium rates for voluntary to
stay the same over the next 12 months.
“In
addition, 12 percent believe decreases are likely in 2007,”
says Gil Lowerre, president of Eastbridge. “In past Confidence
Index surveys, only about five percent of respondents indicated
they expect premium rates to decrease,” adds Lowerre.
“Not
surprisingly, there were also fewer respondents who believe
that premium rates for voluntary lines will increase in the
next 12 months,” says Bonnie Brazzell, vice president.
“In this latest study, only 36 percent believe that increases
are likely compared to 44 percent for mid-year 2006 and 51 percent
for December of 2005,” notes Brazzell.
New
group growth rates (i.e., the number of new groups written)
are also expected to increase, according to the study. “The
majority of respondents (91 percent) think that their companies
will acquire more new groups in 2007 than they did in 2006,”
says Lowerre. “We are beginning to see that in our year-end
survey, respondents tend to be more positive about new group
growth than in the mid-year survey,” adds Lowerre. Last
December, 90 percent of respondents expected growth. But in the
mid-year study, the percentage decreased to 79 percent.
“We think the mid-year decrease is something we will continue
to see,” notes Lowerre, “though perhaps not as drastic
as in 2006. It’s a function of having six months of results
by mid-year versus just starting out. And given that year end
is the busiest season for adding new groups, there may be more
optimism.”
The Voluntary
Industry Confidence Index is a Frontline Report published
semi-annually by Eastbridge Consulting Group, Inc. The
study includes responses from individuals active in the
market and includes carriers, brokers, and vendors. For
more information, contact Eastbridge at info@eastbridge.com or
phone the company at (860) 676-9633.
The
report is available free of charge to all Eastbridge Insight and Information
Partner Companies.
Eastbridge
Consulting Group, Inc. is a marketing advisory firm serving
insurance and financial services organizations in the United
States and Canada. |
