Voluntary sales will still grow despite slow-moving economy according to Eastbridge’s Confidence Index survey.
AVON, CONNECTICUT, USA (September 4, 2012)
Over 90 percent of survey respondents in Eastbridge Consulting Group’s mid-year 2012 Voluntary Industry Confidence Index survey expect sales to increase over the next 12 months. This percentage is down just slightly from the 95 percent at year-end 2011 but up significantly from the 75 percent just a year earlier (year-end 2010).
“Respondents remain confident about the voluntary/worksite industry’s ability to maintain sales growth, which is good news given the continuing high jobless rate and slow-to-recover economy,” says Gil Lowerre, president of Eastbridge. “It’s important to note, however, that the majority of respondents expect the increase to be minimal as opposed to a lot, which is a fairly realistic assessment on their part,” adds Lowerre.
“Interestingly, however, somewhat fewer respondents in the most recent survey believe that the economy will have a positive impact on voluntary sales, perhaps explaining the high percentage of “minimal” increases in sales,” shares Bonnie Brazzell, Eastbridge vice president. The percentage expecting a positive impact was down to 34 percent compared to 40 percent in the year-end 2011 survey. The percentage expecting a negative impact increased to 47 percent as of mid-year compared to 36 percent last time. “This skepticism may be the result of the impending election and the continued sluggish economy,” says Brazzell.
The Voluntary Industry Confidence Index study is conducted semi-annually and includes responses from individuals active in the market—carriers, brokers, and vendors. Like other confidence indices, the 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 the “base” year (meaning the index was at 100 for that year).
The Voluntary Industry Confidence Index report is available only to Eastbridge Information Partner companies as well as to participants. The survey will be conducted again in late December 2012. For more information on becoming a participant, contact the company at www.eastbridge.com .
Eastbridge Consulting Group, Inc. is a marketing advisory
firm serving insurance and financial services organizations in
the United States and Canada.