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Industry Confidence in Voluntary Market Remains Positive According to a Survey by Eastbridge Consulting Group

AVON, CONNECTICUT, USA (August 15, 2007)

The latest results of Eastbridge Consulting Group’s Voluntary Industry Confidence Index survey show that those in the industry are still positive about the future for the industry. According to the survey, the mid-year 2007 Confidence Index is at 101.0. While this is down somewhat from the 102.3 at then end of 2006, the current index is very similar to what we saw mid-year 2006, which was 101.2.

The study is conducted semi-annually and looks at how those active in the worksite/voluntary market—carriers, brokers, and vendors—feel about the industry’s outlook for the following year. 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).

“The decrease in the index is due to slightly lower results for the overall industry profitability and employee enthusiasm questions,” says Gil Lowerre, president of Eastbridge. “Overall, however, survey respondents remain quite positive about the outlook for voluntary products sales over the next 12 months. Over 96 percent expect sales to increase and 34 percent expect sales to ‘increase a lot.’” No one said voluntary sales would decrease over the next 12 months.

Forty-four (44) percent of respondents believe that voluntary carriers (as a group) will be more profitable 12 months from now (down from 53 percent in the 2006 year-end survey). “The respondents were much more positive when asked if their own company would be more or less profitable a year from now,” adds Bonnie Brazzell, vice president. “Eighty-two (82) percent said they expect it to be either ‘much more’ or ‘a little more’ profitable, and 22 percent said ‘much more profitable.’” This is as compared to 80 percent saying “much more” or “a little more” in December 2006.

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 December 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.