New Eastbridge Study Finds Few Carriers Able to Drill Down on Worksite Marketing Measures

AVON, CONNECTICUT, USA (October 6, 2005)-Keeping score is important whether it�s in sports, education, business, etc. It�s a simple way to evaluate success (or lack of success) and then to make any needed improvements. Unfortunately, in the worksite market, many players either can�t keep score or only track the most basic of measures-sales. We also find that different players keep score in different ways or use different �rules,� making industry comparisons somewhat meaningless. For example, there are almost as many ways to measure persistency as there are carriers in the market.

The goal of Eastbridge Consulting Group�s latest Frontline Report, Measures Used by Worksite/Voluntary Carriers, was to find out what worksite/voluntary carriers currently measure and then what they could measure if they wanted to do so. The study looked at total worksite/voluntary measures as well as several different categories of items tracked (e.g.: measures by distribution segment/selling unit, by product line, by new vs. existing account, etc.).

About three-quarters of the carriers surveyed track sales by region or territory, but only half are able to drill down and track sales at the selling-unit level. Nearly two-thirds measure inforce premium by region or territory, with only about one-third tracking this at the selling-unit level. Not quite half of those surveyed measure persistency by region or territory on a regular basis and another 18 percent track this annually. Surprisingly, 43 percent of the carriers do not measure persistency at the distribution level, although they could do so if needed. Interestingly, few carriers measure loss ratios or profitability by region/territory or by selling unit and few track the number of producers on any ongoing basis.

Most carriers measure results by product line. In fact, over 90 percent track sales by product line at least quarterly and 85 percent track inforce premium by product line. Few carriers, however, track persistency, loss ratios, and profitability for each product line.

Only a few of the survey respondents (a little over one-third) track data by new versus existing accounts. Of these, most track sales annually for both account types. Another third could track this data via a special report. Only 25 percent look at persistency, loss ratios, or profit by account type.

Over 70 percent of the carriers track the number of policy lapses and the number of new claims opened. About 60-65 percent track the number of phone calls handled monthly and a little over half measure customer satisfaction. Only a few carriers measures costs (e.g.: set-up costs, average policy issue costs, average maintenance costs, etc.).

Eastbridge’s Insight client companies receive the complete Frontline Report free of charge. If you�re interested in becoming an Insight client, contact Eastbridge at [email protected] or phone the company at (860) 676-9633.

Eastbridge Consulting Group, Inc., is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.