Winter 2006 / No. 66
The worksite/voluntary industry
is optimistic about the future
by Bonnie Brazzell
Ninety-five percent
of those responding to our 2005 Worksite/Voluntary Industry
Confidence Index survey said that they expect voluntary/worksite
sales to increase over the next 12 months. Thirty-seven (37)
percent believe that sales will “increase a lot.” In
addition, most respondents to the study believe that employees
will be more optimistic about voluntary benefits over the next
year.
Carriers and brokers
alike also believe that the profitability of voluntary business
will improve over the next 12 months. About half of the carriers
surveyed expect carriers (as a group) to be “a little
more” profitable (45 percent) or “much more”
profitable (5 percent). Forty (40) percent expect the level of
profitability to remain the same. Sixty- three (63) percent of
brokers believe the industry will be more profitable.
Interestingly, these
numbers jumped considerably when we asked the participants
about the profitability for their company specifically. Seventy-seven
(77) percent expect their company’s voluntary/worksite
business to be more profitable in 2006. A quarter believes
their company will be “much more” profitable.
Other findings from
the study include:
- Sixty-eight (68)
percent believe employees will be more enthusiastic about
voluntary benefits over the next 12 months.
- Smaller carriers
(under $10 million in annual sales) are less optimistic about
profitability than are larger carriers.
- About half of
the respondents believe we will see an improvement in persistency
and retention in 2006.
- Ninety (90) percent
expect new account growth for 2006 to increase.
The 2005 Worksite/Voluntary
Industry Confidence Index report is the first in a series
of reports looking at trends and opinions about the worksite/voluntary
industry. The current report includes responses from 63 different
organizations involved in this market (carriers, third-party
administrators, and brokers). The report is free to our Insight
Client and Information Partner companies.
For information
on how your company can become an Insight Client or Information
Partner, call us at (860) 676-9633 or email us at info@eastbridge.com. |
