The latest results of Eastbridge Consulting Group’s Voluntary Industry Confidence Index survey are mixed.
AVON, CONNECTICUT, USA (August 25, 2011) – The overall Confidence Index dipped to 98.4 after reaching a high of 102.1 at the end of 2010. “The results of the survey are interesting,” says Gil Lowerre, president of Eastbridge. “In the survey, more participants reported that 2011 sales had thus far exceeded their expectations, making the negative predictions difficult to understand.” In fact, almost 40% of participants said year-to-date sales exceeded expectations; 39% said they were in line with expectations; only 22% said they were below expectations.
Yet despite this rosy report, all three components of the index declined compared to the year-end 2010 results. The index is calculated using three key expectation measures about the voluntary industry:
- Sales growth
- Profitability of the industry
- Employee enthusiasm about voluntary products
“All three of the key measures for the index were down,” says Bonnie Brazzell, vice president, Eastbridge. “The biggest dip was in the expectations around industry profitability,” says Brazzell. For the profitability measure, fewer respondents believe that the industry will be “much more” or “a little more” profitable than last year. “A higher percentage of our respondents this time feel industry profitability will be ‘about the same’ or ‘a little less profitable,'” adds 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 July 2011. For more information on becoming a participant, contact the company at www.eastbridge.com.
About Eastbridge Consulting Group, Inc.
Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada. www.eastbridge.com