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Producer Connection is Standard Insurance Company's quarterly online newsletter for Employee Benefits producers.
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what you think of Producer Connection and how we can make it better.
As an employee benefits adviser, it's important to understand the large-scale demographic and economic forces that are driving premium growth in the industry: employment growth, salary growth and the aging workforce.
Over the last 10 years employment has grown 1.2% a year on average, according to the U.S. Bureau of Labor Statistics. Salaries, on average, have risen 3.5% annually over the same period, resulting in premium growth of 2.5%. Meanwhile, the median age of U.S. workers, according to the bureau, rose from 35.9 years in 1988 to 38.7 in 1998, which caused premiums to rise 1.8%. The average median age is expected to top 40 for the first time in 2008.
You may want to consider these factors when looking at which types of customers to pursue in 2008. While the aging of the workforce is probably affecting all industries similarly, you ought to ask yourself if your prospects are in industries that are experiencing employment and salary growth. If they are growing at or above the national average, they are probably customers that can help you grow your business as well.