We were asked recently by one of our clients to provide an analysis of the feasibility of opening a new life insurance agency and penetrating the market in Marathon County, Wisconsin. As part of the the initial feasibility study, the client wished to know:
1. Recent economic trends in the County;
2. Current demographic, social, educational, and economic characteristics for the County;
3. General business profile for insurance companies doing business in the County;
4. Population projections and economic growth projections by sectors of the economy for the County;
5. The estimated population in the County by neighborhood for the current year;
6. The estimated number of consumer units in the County by neighborhood current year;
7. The potential for life insurance sales in the County by neighborhood in the current year;
8. Target neighborhoods in the County for the sale of life insurance;
9. Current market share of existing insurance agencies;
10. Anticipated growth of life insurance sales;
11. Feasibility of penetrating the current market.
Solutions
Recent Economic Trends:
Using our long-term regional economic profile for Marathon County, we provided the client with the information that was required to determine the trends in overall economic growth. The detailed analysis showed that Marathon County is a rapidly growing economic area showing significant gains in per capita income in comparison to the other counties of Wisconsin and the United States in general. Details of this analysis are provided in the illustration below.
Economic Trends in Marathon County, Wisconsin: 1985 to 1995
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Marathon is one of 72 counties in Wisconsin. It is part of the Wausau Metropolitan Area. Its 1995 population of 121,033 ranked 10th in the State. PER CAPITA PERSONAL INCOME In 1995, Marathon had a per capita personal income (PCPI) of $20,902. This PCPI ranked 18th in the State, and was 93.8 percent of the State average, $22,285, and 90.1 percent of the national average, $23,196. In 1985, the PCPI of Marathon was $12,165 and ranked 28th in the State. The average annual growth rate of PCPI over the past 10 years was 5.6 percent. The average annual growth rate for the State was 5.1 percent and for the nation was 4.9 percent. TOTAL PERSONAL INCOME In 1995, Marathon had a total personal income (TPI) of $2,529,836*. This TPI ranked 12th in the State and accounted for 2.2 percent of the State total. In 1985, the TPI of Marathon was $1,353,475* and ranked 11th in the State. The average annual growth rate of TPI over the past 10 years was 6.5 percent. The average annual growth rate for the State was 5.9 percent and for the nation was 5.9 percent. COMPONENTS OF TOTAL PERSONAL INCOME Total personal income (TPI) includes the earnings (wages and salaries, other labor income, and proprietors's income); dividends, interest, and rent; and transfer payments received by the residents of Marathon. In 1995, earnings were 71.2 percent of TPI (compared with 68.3 percent in 1985); dividends, interest, and rent were 14.8 percent (compared with 17.4 percent in 1985); and transfer payments were 14.0 percent (compared with 14.3 percent in 1985). From 1985 to 1995, earnings increased on average 6.9 percent each year; dividends, interest, and rent increased on average 4.8 percent; and transfer payments increased on average 6.2 percent. EARNINGS BY INDUSTRY Earnings of persons employed in Marathon increased from $964,841* in 1985 to $1,889,482* in 1995, an average annual growth rate of 7.0 percent. The largest industries in 1995 were durable goods manufacturing, 20.8 percent of earnings; services, 18.7 percent; and nondurable goods manufacturing, 10.7 percent. In 1985, the largest industries were services, 16.9 percent of earnings; durable goods manufacturing, 16.8 percent; and nondurable goods manufacturing, 13.1 percent. Of the industries that accounted for at least 5 percent of earnings in 1995, the slowest growing from 1985 to 1995 was nondurable goods manufacturing, which increased at an average annual rate of 4.9 percent; the fastest was durable goods manufacturing, which increased at an average annual rate of 9.2 percent. |
Current demographic, social, educational, and economic characteristics for the County:
Using our general statistical profile for Marathon County, the current demographic, social, educational, and economic characteristics of the were portrayed. From the general profile of the County given below, it is seen that the Marathon County is undergoing significant growth. Between 1990 and 1997 the population of the County grew by 6.1% as compared to 3.7% for the period of 1980 through 1990. Overall the population of the County is predominately white (96.6% of the total population). The largest minority group in the County is comprised of Asians and Pacific Islanders (2.8%) of the total population. The age distribution of the population for 1996 indicates that 6.57% are below 5 years of age, 16.09% are between the ages of 5 years to 14 years, 64.7% between the ages of 15 to 64 years, and 12.64% are 65 years or greater. The population is well educated with 75.9% of the the adults being high school graduates and 13.5% of the adults being college graduates. Between 1990 and 1996, the civilian labor force grew by 15.5%. The civilian unemployment rate is 3.9%. Per capita income increased by 20.7% between 1990 and 1994. The population below the poverty level is 8.4% In 1997 741 building permits for new family homes were approved representing in $75 million construction costs.
Marathon County, Wisconsin: General Profile
Population - total, 1997............................................. 122,450 Population - total, 1990............................................. 115,400 Population - total, 1980............................................. 111,270 Population - percent change, 1990 to 1997............................ 6.1 Population - percent change, 1980 to 1990............................ 3.7 Population - white, 1996............................................. 117,654 Population - percent white, 1996..................................... 96.6 Population - black, 1996............................................. 133 Population - percent black, 1996..................................... 0.1 Population - American Indian, Eskimo, or Aleut, 1996................. 560 Population - percent American Indian, Eskimo, or Aleut, 1996......... 0.5 Population - Asian or Pacific Islander, 1996......................... 3,444 Population - percent Asian or Pacific Islander, 1996................. 2.8 Population - Hispanic (may be of any race), 1996..................... 642 Population - percent Hispanic (may be of any race), 1996............. 0.5 Population - under 5 years, 1996..................................... 8,046 Population - 5 to 14 years, 1996..................................... 19,669 Population - 65 years and over, 1996................................. 15,478 Vital statistics (NCHS) - births, 1994............................... 1,653 Vital statistics (NCHS) - births per 1000 resident population, 1994.. 13.8 Vital statistics (NCHS) - deaths, 1994............................... 910 Vital statistics (NCHS) - deaths per 1000 resident population, 1994.. 7.6 Vital statistics (NCHS) - infant deaths, 1994........................ 9 Vital statistics (NCHS) - infant deaths per 1000 live births, 1994... 5.4 Public school enrollment (NCES) - number, fall 1994-1995............. 19,355 Public school enrollment (NCES) - number, fall 1991-1992............. 18,510 Educational attainment - percent persons 25 years and over high school graduates, 1990.............................................. 75.9 Educational attainment - percent persons 25 years and over college graduates, 1990..................................................... 13.5 Local government finances - per capita property taxes (dollars), 1992................................................................ 635 Federal funds and grants - per capita expenditures and obligations (dollars), 1997..................................................... 2,851 Federal funds and grants - per capita expenditures and obligations (dollars), 1990..................................................... 2,092 Social security (SSA) - total benefit recipients, 1996............... 19,491 Social security (SSA) - total benefit recipients, 1990............... 17,845 Supplemental security income (SSA) - total recipients, 1996.......... 1,954 Supplemental security income (SSA) - total recipients, 1990.......... 1,784 Civilian labor force (BLS) - number, 1996............................ 71,249 Civilian labor force (BLS) - number, 1990............................ 61,874 Civilian labor force (BLS) - unemployment rate, 1996................. 3.9 Civilian labor force (BLS) - unemployment rate, 1990................. 4.2 Personal income (BEA) - total ($1000), 1994.......................... 2,345,186 Personal income (BEA) - total ($1000), 1990.......................... 1,871,909 Personal income (BEA) - per capita (dollars), 1994................... 19,525 Personal income (BEA) - per capita (dollars), 1990................... 16,177 Money income - median household income (dollars), 1993............... 35,675 Money income - median household income (dollars), 1989............... 30,143 Poverty - percent persons below poverty, 1993........................ 8.4 Poverty - percent persons below poverty, 1989........................ 7.9 Commercial banks and savings institutions (FDIC-insured) - number of offices, 1997....................................................... 49 Commercial banks and savings institutions (FDIC-insured) - total deposits ($1000), 1997.............................................. 1,556,656 Private nonfarm establishments - total, 1995......................... 3,136 Private nonfarm establishments - net change, 1990 to 1995............ 381 Private nonfarm establishments - percent retail trade, 1995.......... 22.8 Private nonfarm establishments - percent services, 1995.............. 32.2 Private nonfarm establishments - paid employees, 1995................ 54,944 Private nonfarm establishments - average annual payroll per paid employee (dollars), 1995............................................ 23,797 New private housing units authorized by building permits - total, 1997................................................................ 741 New private housing units authorized by building permits - total, 1990................................................................ 613 New private housing units authorized by building permits - valuation ($1000), 1997....................................................... 75,349 New private housing units authorized by building permits - valuation ($1000), 1990....................................................... 40,060 Retail trade - per capita retail sales (dollars), 1992............... 7,864 --------------------------------------------------------------------- (NA) Not available (D ) Avoid disclosure of confidential information (X ) Not applicable (S ) Does not meet publication standards (Z ) Value > 0 but < half unit of measure shown (FN) Footnote in place of data |
General business profile for insurance companies doing business in the County:
Examination of the business patterns for Marathon County shows that there are currently a total of 77 establishments with insurance agents, brokers, and services. These establishments have a total of 260 employees with a total payroll of $2.6 million. Additionally, there are 33 insurance carriers of which 12 life insurance carriers. The vast majority of the firms employ less than 20 people.
Marathon County, Wisconsin: Life Insurance Business Patterns For 1998
Annual Total Employment-size class
Number of Payroll Estab- --------------------------------
SIC Industry Employees ($1,000) lishments 1-19 20-99 100-499 > 499
---- ------------------------------------------------- ----------- ------------- --------- --------- ------- ------- ------
---- TOTAL 59,331 1,613,331 3,350 2,847 415 73 15 6300 Insurance carriers (H) (D) 33 23 4 3 3 6310 Life insurance (F) (D) 12 9 2 0 1 6400 Insurance agents, brokers, and service 260 6,323 77 76 1 0 0 Abbreviations and symbols ------------------------- SIC -- Standard Industrial Classification n.e.c. -- Not elsewhere classified (D) -- Withheld to avoid disclosing data for individual companies; data are included in broader industry totals (A)-(C), (E)-(M) -- Employment-size classes are indicated as follows
A--0 to 19 B--20 to 99 C--100 to 249 E--250 to 499
F--500 to 999 G--1,000 to 2,499 H--2,500 to 4,999
I--5,000 to 9,999 J--10,000 to 24,999
K--25,000 to 49,999 L--50,000 to 99,999
M--100,000 or more
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Population projections and economic growth projections by sectors of the economy for the County:
Using forecasts from the Bureau of Economic Analysis, it is seen that the that the population of the Marathon County (Wausau MSA) is projected to increase by 22.38% in the next 25 years. By 2045, the projected population for Marathon County is 177,000 persons.
In the next 10 years, it is projected that earnings from all industries will increase by 19.93%. Increases in the service sector of the economy over the next 10 years are projected to 29.89%, while the projected increases for manufacturing and construction are 13.3% and 20.3% respectively. It is anticipated that retail trade will increase by 16.3% and wholesale trade by 17.3% during the next decade.
Population and Economic Projections For Marathon County Through 2045
1995 BEA Projections (1988 through 2045)
----- Population (thousands) -----
Wausau, WI, MSA
Item Historical Data Projections
-----------------------------------------------------------------------------
Population (thousands)
1983: 112.4 2000: 127.8
1988: 113.9 2005: 133.4
1993: 119.6 2010: 138.9
2015: 144.7
2025: 156.4
2045: 177
1995 BEA Projections (1988 through 2045)
----- Personal Income (millions of $87) -----
Wausau, WI, MSA
Item Historical Data Projections
-----------------------------------------------------------------------------
Total Personal Income (millions of $87
1983: 1324.1 2000: 2044.7
1988: 1514.1 2005: 2276.7
1993: 1713.7 2010: 2505.7
2015: 2730.6
2025: 3178.8
2045: 4304.9
1995 BEA Projections (1998 through 2045)
----- Earnings (millions of $87 ) -----
Wausau, WI, MSA
Item Historical Data Projections
-----------------------------------------------------------------------------
All-Industry Total
1983: 955.6 2000: 1535.1
1988: 1137.4 2005: 1693
1993: 1284.7 2010: 1841
2015: 1973.7
2025: 2208.6
2045: 2878.2
Farm
1983: 18.7 2000: 37
1988: 36.7 2005: 42.5
1993: 17.4 2010: 46.3
2015: 48.8
2025: 51.7
2045: 60.6
Non-Farm
1983: 937 2000: 1498.1
1988: 1100.7 2005: 1650.6
1993: 1267.4 2010: 1794.6
2015: 1924.9
2025: 2156.9
2045: 2817.6
Private
1983: 824.2 2000: 1330.2
1988: 972.9 2005: 1467.9
1993: 1122.3 2010: 1598
2015: 1715.7
2025: 1925.1
2045: 2519.6
Ag Services, Forestry
1983: 2.8 2000: 10.1
1988: 3.5 2005: 12.6
1993: 6.8 2010: 15.1
2015: 17.4
2025: 21.6
2045: 31.4
Mining
1983: 1.8 2000: 1
1988: 1.2 2005: 1
1993: 1.1 2010: 1.1
2015: 1.1
2025: 1.1
2045: 1.3
1995 BEA Projections (1998 through 2045)
----- Earnings (millions of $87 ) -----
Wausau, WI, MSA
Item Historical Data Projections
-----------------------------------------------------------------------------
Construction
1983: 44.5 2000: 83.2
1988: 63.8 2005: 91.9
1993: 67.2 2010: 100.1
2015: 107.2
2025: 119.4
2045: 155.2
Manufacturing
1983: 296.7 2000: 456
1988: 370.7 2005: 487.3
1993: 406.6 2010: 516.8
2015: 544.1
2025: 594.5
2045: 756.8
Durables
1983: 161.1 2000: 279.6
1988: 220.3 2005: 297.6
1993: 250.1 2010: 314.4
2015: 329.7
2025: 357.8
2045: 451.8
Nondurables
1983: 135.6 2000: 176.4
1988: 150.4 2005: 189.7
1993: 156.5 2010: 202.4
2015: 214.4
2025: 236.7
2045: 305
T.C.U.
1983: 62 2000: 98.4
1988: 78.7 2005: 108.3
1993: 82.9 2010: 117.8
2015: 126.1
2025: 140.8
2045: 182.8
Wholesale Trade
1983: 75.4 2000: 111.1
1988: 79.1 2005: 121.3
1993: 95.1 2010: 130.3
2015: 138
2025: 151.3
2045: 193.7
Retail Trade
1983: 95.4 2000: 128.5
1988: 104.8 2005: 139
1993: 112 2010: 149.4
2015: 158
2025: 173
2045: 220.1
1995 BEA Projections (1998 through 2045)
----- Earnings (millions of $87 ) -----
Wausau, WI, MSA
Item Historical Data Projections
-----------------------------------------------------------------------------
F.I.R.E.
1983: 89.7 2000: 141.5
1988: 86.4 2005: 159.7
1993: 114.2 2010: 177.4
2015: 193.8
2025: 223.7
2045: 303.2
Services
1983: 155.9 2000: 300.4
1988: 184.8 2005: 346.7
1993: 236.5 2010: 390.2
2015: 430
2025: 499.7
2045: 675.2
Government
1983: 112.8 2000: 167.9
1988: 127.8 2005: 182.7
1993: 145.1 2010: 196.6
2015: 209.3
2025: 231.8
2045: 298
Federal Civilian
1983: 12.2 2000: 15.2
1988: 13.2 2005: 15.5
1993: 14.6 2010: 15.8
2015: 16.1
2025: 16.8
2045: 20.6
Military
1983: 2.9 2000: 3.2
1988: 3.2 2005: 3.3
1993: 3.2 2010: 3.5
2015: 3.6
2025: 4
2045: 4.8
State and Local
1983: 97.7 2000: 149.5
1988: 111.4 2005: 163.9
1993: 127.3 2010: 177.3
2015: 189.5
2025: 211
2045: 272.6
1995 BEA Projections (1998 through 2045)
----- Employment (thousands of jobs) -----
Wausau, WI, MSA
Item Historical Data Projections
-----------------------------------------------------------------------------
All-Industry Total
1983: 55.8 2000: 80.2
1988: 62.5 2005: 85.2
1993: 71.4 2010: 89.2
2015: 92
2025: 94.7
2045: 105
Farm
1983: 6 2000: 4.4
1988: 4.9 2005: 4.2
1993: 4.5 2010: 4.1
2015: 3.9
2025: 3.6
2045: 3.3
Non-Farm
1983: 49.7 2000: 75.8
1988: 57.6 2005: 80.9
1993: 66.9 2010: 85.1
2015: 88.1
2025: 91.1
2045: 101.6
Private
1983: 42.8 2000: 67.9
1988: 50.8 2005: 72.6
1993: 59.6 2010: 76.5
2015: 79.3
2025: 82.2
2045: 91.9
Ag Services, Forestry
1983: 0.2 2000: 0.7
1988: 0.4 2005: 0.9
1993: 0.6 2010: 1
2015: 1.1
2025: 1.2
2045: 1.4
Mining
1983: 0.1 2000: 0.1
1988: 0.1 2005: 0.1
1993: 0.1 2010: " (L) "
2015: " (L) "
2025: " (L) "
2045: " (L) "
1995 BEA Projections (1998 through 2045)
----- Employment (thousands of jobs) -----
Wausau, WI, MSA
Item Historical Data Projections
-----------------------------------------------------------------------------
Construction
1983: 2 2000: 3.6
1988: 2.8 2005: 3.9
1993: 3.1 2010: 4.1
2015: 4.2
2025: 4.4
2045: 4.9
Manufacturing
1983: 11 2000: 17.8
1988: 14.1 2005: 18.4
1993: 16.4 2010: 18.8
2015: 19.1
2025: 19.3
2045: 20.9
Durables
1983: 6.4 2000: 11.6
1988: 8.9 2005: 11.9
1993: 10.8 2010: 12.2
2015: 12.3
2025: 12.3
2045: 13.3
Nondurables
1983: 4.7 2000: 6.2
1988: 5.2 2005: 6.5
1993: 5.7 2010: 6.7
2015: 6.8
2025: 7
2045: 7.7
T.C.U.
1983: 2.6 2000: 4.4
1988: 3.2 2005: 4.7
1993: 3.8 2010: 5
2015: 5.2
2025: 5.4
2045: 6.1
Wholesale Trade
1983: 3.1 2000: 4.9
1988: 3.3 2005: 5.2
1993: 4.4 2010: 5.5
2015: 5.6
2025: 5.7
2045: 6.3
Retail Trade
1983: 9 2000: 13.2
1988: 10.5 2005: 14
1993: 11.6 2010: 14.8
2015: 15.3
2025: 15.8
2045: 17.7
1995 BEA Projections (1998 through 2045)
----- Employment (thousands of jobs) -----
Wausau, WI, MSA
Item Historical Data Projections
-----------------------------------------------------------------------------
F.I.R.E.
1983: 5.1 2000: 6.3
1988: 4.7 2005: 6.6
1993: 5.6 2010: 6.9
2015: 7.1
2025: 7.2
2045: 8
Services
1983: 9.7 2000: 16.9
1988: 11.6 2005: 18.8
1993: 14 2010: 20.3
2015: 21.6
2025: 23
2045: 26.4
Government
1983: 6.9 2000: 7.9
1988: 6.8 2005: 8.3
1993: 7.4 2010: 8.6
2015: 8.8
2025: 9
2045: 9.8
Federal Civilian
1983: 0.4 2000: 0.5
1988: 0.5 2005: 0.5
1993: 0.5 2010: 0.4
2015: 0.4
2025: 0.4
2045: 0.4
Military
1983: 0.5 2000: 0.5
1988: 0.6 2005: 0.5
1993: 0.6 2010: 0.5
2015: 0.5
2025: 0.5
2045: 0.5
State and Local
1983: 6 2000: 7
1988: 5.8 2005: 7.3
1993: 6.3 2010: 7.6
2015: 7.8
2025: 8
2045: 8.8
Notes on the data
-----------------
Listed below are several issues that data users should be aware
of when using the historical and projected data contained in these
data files. Reading this list of technical notes may help avoid
questions and confusion as you use these data.
** These industries are categorized according to the 1987 Standard
Industrial Classification; for a detailed description of each
industrial group, see Office of Management and Budget, Standard
Industrial Classification Manual 1987 (Washington, DC: U.S. Government
Printing Office, 1987).
** Earnings by place of work consists of wage and salary
disbursements, other labor income, and proprietors' income.
** Employment is a count of the number of jobs; persons holding more
than one job are counted in each job.
** The "Other" in "Forestry, Fishing, and Other," consists of
wages and salaries, or employment, of U.S. residents working for
international organizations and foreign embassies and consulates
located in the United States.
** For the BEA regional projections program, government enterprise
activity is not classified with any of the industries in the private
sector. For example, printing and publishing (SIC 27) does not include
the U.S. Government Printing Office. All general government and
government enterprises are classified as either Federal civilian or
State and local government. A separate Federal military
classification is also included.
** "(D)" appears in a field when data are not shown to avoid
disclosure of confidential information; estimates are included in
higher-level totals.
** "(L)" appears in a field if the datum for that field is non-zero
but would round to zero at the published level of precision. Thus,
"(L)" appears when earnings is less than $50,000 or employment is
fewer than 50 jobs. Zero appears in a field only if the datum is
actually zero for that year.
** Historical estimates of U.S. employment, earnings, and personal
income may differ from the estimates published in BEA Regional
Projections to 2045, Volume 1: States, July 1995. The U.S. totals for
metropolitan statistical areas and for BEA economic areas incorporate
additional data and revisions to the data series that were made after
the U.S. and State-level estimates in volume 1 were published.
** Detail may not add exactly to totals because of rounding.
** Earnings and personal income estimates were converted from
current to 1987 dollars using the implicit price deflator for personal
consumption expenditures (PCE). The PCE deflators that were used in
the preparation of these projections are listed below in Table 3.
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The estimated population in the County by neighborhood for the current year:
Block groups were selected to represent neighborhoods in this analysis. Block groups are relatively small geographic areas that approximately coincide with neighborhoods and are used by the Bureau of the Census for microscale analysis. In Marathon County, there are a total of 116 block groups having an average area of 13.3 square miles. The location of the block groups are provided in the map given below.
Marathon County Block Groups
Using population projections from the Bureau of the Census, the population of individual block groups were estimated and mapped for 2000. The population of Marathon County by block group is shown in the map below.
Projected Population Of Marathon County By Block Group For 2000
The estimated number of consumer units in the County by neighborhood current year:
The estimated number of consumer units (households) in each block group were estimated for 2000. These estimates are based on the historic number of persons per household within each block group as well as the projected population for 2000. The estimated number of consumer units for Marathon County are seen in the map below.
Estimated Number of Consumer Units For Marathon County For 2000
The potential for life insurance sales in the County by neighborhood in the current year:
Several models are available to estimate the potential for life insurance sales by neighborhood. For this initial feasibility study, the average modeling method (AMM) was employed. The AMM uses information for the average expenditure made by consumer units for life insurance. Statistics used in the estimate are based on the Bureau of Economic Analysis 1998 Survey of Household Consumer Expenditures in the United States. It was estimated that the total potential sales for life insurance in Marathon County in 2000 was $148,262,841. Total potential sales are represented in 1998 dollars. The population, number of consumer units, and potential sales of life insurance by block group are given in the table below.
Estimated Population, Consumer Units And Potential Sales of Life Insurance By Block Group For 2000
BLOCK GROUP CODE |
POP2000 |
CU2000 |
TOTAL SALES $ |
| 550730006024 | 987 | 383 | 1260453 |
| 550730006022 | 2173 | 996 | 3277836 |
| 550730001 1 | 1221 | 445 | 1464495 |
| 550730007 7 | 944 | 558 | 1836378 |
| 550730003 7 | 558 | 308 | 1013628 |
| 550730002 3 | 1170 | 457 | 1503987 |
| 550730005 2 | 1216 | 484 | 1592844 |
| 550730008 1 | 2019 | 815 | 2682165 |
| 550730002 2 | 914 | 406 | 1336146 |
| 550730001 3 | 833 | 401 | 1319691 |
| 550730004 4 | 1121 | 500 | 1645500 |
| 550730005 1 | 1326 | 491 | 1615881 |
| 550730007 3 | 1399 | 535 | 1760685 |
| 550730002 4 | 859 | 297 | 977427 |
| 550730007 2 | 614 | 231 | 760221 |
| 550730001 4 | 804 | 300 | 987300 |
| 550730011043 | 1408 | 555 | 1826505 |
| 550730007 4 | 1238 | 455 | 1497405 |
| 550730003 6 | 1050 | 320 | 1053120 |
| 550730010 2 | 1609 | 604 | 1987764 |
| 550730012022 | 1517 | 637 | 2096367 |
| 550730006014 | 1585 | 670 | 2204970 |
| 550730001 2 | 912 | 359 | 1181469 |
| 550730006021 | 910 | 336 | 1105776 |
| 550730004 3 | 1777 | 743 | 2445213 |
| 550730007 8 | 400 | 304 | 1000464 |
| 550730005 3 | 1138 | 473 | 1556643 |
| 550730004 2 | 1600 | 682 | 2244462 |
| 550730003 4 | 146 | 43 | 141513 |
| 550730003 5 | 680 | 206 | 677946 |
| 550730011033 | 1820 | 790 | 2599890 |
| 550730014 4 | 982 | 335 | 1102485 |
| 550730011041 | 1367 | 576 | 1895616 |
| 550730006023 | 755 | 296 | 974136 |
| 550730009 1 | 1331 | 581 | 1912071 |
| 550730009 2 | 1353 | 559 | 1839669 |
| 550730008 3 | 1995 | 616 | 2027256 |
| 550730011034 | 932 | 300 | 987300 |
| 550730003 3 | 488 | 233 | 766803 |
| 550730006013 | 948 | 334 | 1099194 |
| 550730010 1 | 1445 | 536 | 1763976 |
| 550730010 4 | 90 | 18 | 59238 |
| 550730004 1 | 1504 | 506 | 1665246 |
| 550730013 1 | 1916 | 686 | 2257626 |
| 550730007 5 | 324 | 130 | 427830 |
| 550730012021 | 658 | 250 | 822750 |
| 550730013 3 | 1751 | 632 | 2079912 |
| 550730019 5 | 954 | 336 | 1105776 |
| 550730002 1 | 559 | 208 | 684528 |
| 550730011042 | 1331 | 452 | 1487532 |
| 550730019 6 | 798 | 303 | 997173 |
| 550730003 2 | 2407 | 837 | 2754567 |
| 550730010 3 | 1019 | 330 | 1086030 |
| 550730012023 | 1464 | 504 | 1658664 |
| 550730012015 | 2946 | 901 | 2965191 |
| 550730011044 | 1187 | 364 | 1197924 |
| 550730011032 | 1085 | 331 | 1089321 |
| 550730020 3 | 866 | 325 | 1069575 |
| 550730021 2 | 777 | 289 | 951099 |
| 550730023 4 | 446 | 192 | 631872 |
| 550730021 3 | 1241 | 530 | 1744230 |
| 550730019 2 | 928 | 299 | 984009 |
| 550730019 3 | 601 | 234 | 770094 |
| 550730011031 | 412 | 140 | 460740 |
| 550730008 2 | 169 | 57 | 187587 |
| 550730023 3 | 685 | 251 | 826041 |
| 550730012017 | 1038 | 370 | 1217670 |
| 550730014 2 | 1892 | 712 | 2343192 |
| 550730013 2 | 519 | 171 | 562761 |
| 550730022 2 | 610 | 221 | 727311 |
| 550730007 1 | 419 | 149 | 490359 |
| 550730020 2 | 778 | 282 | 928062 |
| 550730014 1 | 150 | 57 | 187587 |
| 550730012016 | 949 | 325 | 1069575 |
| 550730022 4 | 540 | 215 | 707565 |
| 550730014 3 | 260 | 114 | 375174 |
| 550730018 4 | 1280 | 443 | 1457913 |
| 550730013 4 | 1922 | 632 | 2079912 |
| 550730021 5 | 1008 | 354 | 1165014 |
| 550730015 3 | 1192 | 412 | 1355892 |
| 550730011022 | 2086 | 645 | 2122695 |
| 550730011021 | 1677 | 539 | 1773849 |
| 550730015 2 | 2025 | 687 | 2260917 |
| 550730021 6 | 1293 | 394 | 1296654 |
| 550730014 5 | 1106 | 404 | 1329564 |
| 550730012024 | 1481 | 466 | 1533606 |
| 550730021 4 | 1032 | 342 | 1125522 |
| 550730016 4 | 1125 | 383 | 1260453 |
| 550730015 1 | 1059 | 316 | 1039956 |
| 550730003 1 | 25 | 9 | 29619 |
| 550730020 4 | 1064 | 328 | 1079448 |
| 550730016 3 | 1535 | 465 | 1530315 |
| 550730019 7 | 1103 | 329 | 1082739 |
| 550730018 1 | 1099 | 342 | 1125522 |
| 550730017 1 | 1137 | 375 | 1234125 |
| 550730019 1 | 921 | 282 | 928062 |
| 550730021 1 | 898 | 294 | 967554 |
| 550730022 1 | 1037 | 306 | 1007046 |
| 550730017 3 | 1038 | 345 | 1135395 |
| 550730023 8 | 921 | 277 | 911607 |
| 550730019 4 | 810 | 248 | 816168 |
| 550730023 7 | 933 | 278 | 914898 |
| 550730022 3 | 797 | 230 | 756930 |
| 550730023 2 | 1003 | 284 | 934644 |
| 550730023 5 | 917 | 281 | 924771 |
| 550730023 6 | 818 | 268 | 881988 |
| 550730012018 | 1069 | 328 | 1079448 |
| 550730017 2 | 1456 | 486 | 1599426 |
| 550730020 1 | 747 | 244 | 803004 |
| 550730016 1 | 1683 | 530 | 1744230 |
| 550730018 3 | 972 | 338 | 1112358 |
| 550730018 2 | 733 | 223 | 733893 |
| 550730022 5 | 635 | 205 | 674655 |
| 550730016 2 | 1029 | 332 | 1092612 |
| 550730023 1 | 1113 | 318 | 1046538 |
| 550730018 5 | 590 | 218 | 717438 |
TOTALS |
125186 | 45051 | 148262841 |
Target neighborhoods in the County for the sale of life insurance:
Using the Geographic Information Systems capabilities of McCluskey & Associates, the information provided by the AMM for potential life insurance sales was mapped at the block group level for our client. The total potential for life insurance sales at the block group level is shown below. This map can provide the basis for additional analysis for the development of sales territories based on information on the location of competitors or market segmentation models depicting the location of specific age groups or number of workers in a given occupation.
Map Of Potential Of Life Insurance Sales At The Block Group Level For 2000
Current market share of existing insurance agencies:
Based on the the total estimated potential life insurance sales of $148,262,841 for Marathon County, each of the 77 insurance agencies currently doing business has a current market share of $1,925,491.
Anticipated growth of life insurance sales
Successful penetration into any market requires a significant growth in order to accommodate additional competitors. Based on population projections for Marathon County and the estimated potential of life insurance sales in 2000, the table below illustrates the potential increase in sales in life insurance until the year 2045 based on 1998 dollars.
Potential Growth in Life Insurance Sales Until 2045
YEAR |
POPULATION |
SALES |
| 2000 | 125,186 | $148,262,241 |
| 2005 | 133,400 | $157,945,600 |
| 2010 | 138,900 | $164,457,600 |
| 2015 | 144,700 | $171,324,800 |
| 2025 | 156,400 | $185,177,600 |
| 2045 | 177,000 | $209,568,000 |
Feasibility of penetrating the current market:
If the assumption is made that the current life insurance vendors will retain a consistent ration of the current market share, it can be anticipated that given the current market conditions and projected population trends that 5 additional insurance firms can be accommodated by the Marathon County life insurance market in the next 5 years and 8 in the next 10 years. This information is illustrated in the table given below. All sales figures are based on 1998 dollars.
Number Of Life Insurance Vendors That Can Be Accommodated By Marathon County Market Given The Current Status Quo
YEAR |
SALES |
NUMBER OF FIRMS |
| 2000 | $148,262,241 | 77 |
| 2005 | $157,945,600 | 82 |
| 2010 | $164,457,600 | 85 |
| 2015 | $171,324,800 | 89 |
| 2025 | $185,177,600 | 96 |
| 2045 | $209,568,000 | 109 |
Outcome
The initial feasibility study of the potential for life insurance sales in the Marathon County market indicates that is indeed feasible to open an additional agency. The healthy economic environment of the County coupled with a rapidly expanding population allows for the penetration of an additional 5 life insurance vendors into the market over the next 5 years.