Despite More Caution, Most Carriers Still Expect Voluntary Sales to Increase, According...

Despite More Caution, Most Carriers Still Expect Voluntary Sales to Increase, According to Eastbridge's Industry Confidence Survey

AVON, CONNECTICUT--(Business Wire)--
The latest results of Eastbridge Consulting Group's Voluntary
Industry Confidence Index survey show that the majority of those in
the industry continue to be positive about voluntary sales despite an
overall decline in the Confidence Index.

Based on the survey results, the Index at mid-year 2008 decreased
to 96.2 from 97.3 at year-end 2007. The index is calculated using
three key expectation measures about the voluntary industry:

-- Sales growth

-- Profitability

-- Employee enthusiasm about voluntary products

The lower confidence index number is largely driven by the results
of the sales growth question.

"We see an interesting dichotomy among our respondents," says
Bonnie Brazzell, vice president of Eastbridge. "On the one hand, the
percentage of responders who think that sales will 'increase a lot'
went up to 24 percent (from 20 percent at year-end 2007) and a total
of 82 percent believe sales will increase at least a little. At the
other extreme, we see 12 percent saying sales will decrease. We've
never seen more than five percent saying they expect a decrease." Six
(6) percent said that sales will "stay the same" (the same percent as
at year end).

"We expected to see some deterioration in the index due to the
economy," says Gil Lowerre, president of Eastbridge. "In addition, we
think we are also seeing the results of the plateauing of the number
of new brokers (employee benefit brokers) entering the marketplace. As
we reach the point where all benefits brokers are in the voluntary
market, the game changes," adds Lowerre. "It means that all brokers
have a voluntary relationship. And that for a carrier to gain brokers
the company must take them away from someone else rather than just
convincing a broker to try voluntary for the first time."

Response to the question about carrier profitability was down
slightly in the most recent study primarily in the percent expecting
the profitability to be "much more" profitable. The results of the
employee enthusiasm question were actually up over year-end results
with 67 percent believing employees will be more enthusiastic about
voluntary benefits (up from 63 percent).

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 our "base"
year (meaning the index was at 100 for that year).

The Voluntary Industry Confidence Index report is available only
to Eastbridge Insight and Information Partner companies as well as to
participants. The survey will be conducted again in July of 2008. For
more information on becoming a participant, contact the company at
info@eastbridge.com.

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

Eastbridge Consulting Group, Inc.
Jennifer Davis, 860-676-9633

Copyright Business Wire 2008