Short Insurance Group Sees Economic Uptick
Thursday, April 21st, 2011
The commercial insurance business offers a firsthand indicator of economic health. Sales and payrolls of commercial clients largely drive insurance premiums. According to David Short of Short Insurance Group, payrolls and sales have increased in the last four to five months.
“We’re hoping it’s a prolonged trend and not just a spike,” Short said.
About 70 percent of Short Insurance Group’s business is workers compensation insurance, truckers insurance, business owners insurance, general liability and other types of commercial insurance. The company also provides personal insurance including auto and homeowners insurance solutions.
Close to the transportation industry
The trucking industry represents a significant portion of Short’s business. The economic downturn greatly affected activity in this sector.
“Everything you buy is transported, typically on two or three trucks. When people stopped buying, it had a direct impact on fleet size. For example, one of our commercial trucking clients that had operated 17 or 18 units is now operating just three. With premiums averaging $4,000 or $5,000 per unit, that’s a huge impact on our business as well,” Short explained.
With policies typically lasting for a one-year period, it has taken some time to see the uptick in the economy. In fact, Short says that premium volumes are still down sharply in his business from their peak a few years ago while customer counts are flat to slightly up.
Embracing technology
Short has readily embraced technology in the operations of the Short Insurance Group. While the agency’s operating area used to be everything within 100 miles of Albany, today Short Insurance is listed and doing business in 19 states.
Short Insurance Group has the ability to operate in states other than Georgia, thanks to reciprocal agreements between Georgia and other states. Once listed in a state, Short Insurance must learn specific regulatory requirements as well as the competitive landscape in that market.
“Technology, from email and the Internet to electronic signatures and electronic funds transfers, has changed our world. The world is getting smaller,” Short said.
As more customers get comfortable doing business online, the percent of customers that he has never met in person continues to grow. Yet while technology may have permanently changed the nature of the client relationship, the basics of the insurance business remain the same.
Establishing credibility and trust
“Before we focused on having great products and service delivered with a handshake or smile. Going forward, it will be great products delivered with a friendly voice or personal email. You still have to establish credibility and trust,” Short continued.
Whether a client is sitting in the office or is hundreds of miles away, Short believes success comes down to offering an insurance solution that is not readily available elsewhere in the market. Typically, the quote process enables Short Insurance to identify areas of opportunity.
“We work individually with clients to identify strengths and weaknesses in their current program. We can offer solutions with good companies to address the weaknesses we identify,” Short explained.
More information on Short Insurance Group is available at www.shortinsurancegroup.com or email David Short at [email protected].
