The average insurance and/or financial services company in the U.S. and Canada spends $2.78 million annually on its meetings and events, according to what is believed to be the first comprehensive study of insurance and financial services meetings.
The study was conducted by SmithBucklin on behalf of Chicago-based Financial & Insurance Conference Planners — the largest association focused on insurance and financial services meetings. The study estimates that expenditures for events organized through the meeting departments of FICP's 269 member companies totaled more than $600 million last year.
The healthy slice of meetings business that FICP members represent surprised many within the organization, according to Patricia Kerr, FICP president-elect, and director of distribution sales support for Manulife Financial, in Waterloo, ON. "I don't think anybody could have guessed the business is as large as it is," said Kerr. She estimated that the North American meetings market for all insurance and financial services companies could easily top $1 billion.
For their largest annual meeting in 2005, insurance and financial services companies spent an average $867,226, and such meetings spanned three to four nights in terms of hotel stays. Peak-night pickups averaged 338 rooms based on an average attendance of 512 people, and negotiated room rates averaged $228 per night. Financial services companies averaged higher attendance than insurance companies, 688 people versus 444 people.
For meetings of fewer than 100 attendees in 2005, companies spent an average $45,877 for each meeting, and such meetings spanned one to two nights. Peak-night pickups averaged 32 rooms, and negotiated rates averaged $164 per night.
About three-quarters of the 112 planners surveyed said their companies hold meetings outside North America — typically one incentive trip or conference per year. Europe and the Caribbean are most popular for international events.
As for activities, nearly 80 percent of companies host golf events and typically one to three per year, while attendees highly value spas at headquarters hotels.
The survey, conducted during the third quarter of last year, also examines the meeting departments of FICP members. One significant finding, according to Kerr, was that only five percent of meeting departments reside in finance and administration, i.e., purchasing and procurement. In contrast, nearly half (47 percent) of meeting departments reside in marketing, with another 16 percent in sales.
"Procurement is involved in meeting planning to a certain degree, but it's not quite as big as all the discussion about it," said Kerr. "If a meeting planning department reports to procurement, then procurement has ownership over the deliverables, but it appears that ultimate ownership and accountability still reside mainly with marketing or sales. That's good news for planners who do not want to deal with procurement."
Contact Marshall Krantz at [email protected]For ideas, tips, and tools for better meetings and events,
get MeetingNews' weekly e-newsletter to your inbox.