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