Press Release Archives
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Product competition is a concern
for worksite executives, according to a recent Eastbridge study
AVON,
CONNECTICUT, USA (April 24, 2007)
Product competition
ranked second as a top obstacle for worksite/voluntary executives
surveyed in a recent study, Worksite Marketing:
An Executive Perspective 2007. In addition, product competition was the most
common answer when executives were asked what their company’s
greatest obstacle would be in five years.
With product competition being a top of mind issue, it’s
probably no surprise that most of the execs surveyed also said
they expect to see product and product mix changes over the next
five years. About 30 percent describe the changes as “major,” while
70 percent describe these as “minor.” Interestingly,
the types of changes expected were fairly similar regardless
of whether the change was described as minor or major. Most respondents
expect to add products to their portfolio. The entire spectrum
of products was mentioned; however, many expect more development
and/or focus on health-based products than in the past.
Carriers are also expecting changes in product platform. Some
carriers are planning to move more to group platform products,
while others are looking to add individual worksite, individually
underwritten products, or hybrid products. It appears that carriers
are seeing a place for all types of products in the market. This
is consistent with what Eastbridge has been saying for a number
of years now—that we will see a blending of group and individual
platforms to the point that platform will be almost immaterial.
But despite the blending, respondents do believe that group platform
products will dominate the voluntary industry. In fact, 81 percent
of those surveyed expect more of the industry’s sales to
be on a group platform. Seventy-one (71) percent think group
product sales are likely to exceed individual product sales.
Worksite Marketing: An Executive Perspective, is a bi-annual
study conducted by Eastbridge Consulting Group. The survey tracks
the executives’ thoughts and insights on the obstacles
facing the industry today and what they might expect for the
future as well as explores the executives’ opinions on
other topics based on market trends. The 2007 report includes
feedback from 31 key executives. The report was provided free
of charge to Information Partner, Insight Customers, and participants.
Companies interested in becoming an Insight or Information Partner
Company can call the company at (860) 676-9633 or email info@eastbridge.com.
Eastbridge Consulting Group, Inc. is a marketing advisory firm
serving insurance and financial services organizations in the
United States and Canada.
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