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06/01/2007
Chairman’s Message
It’s nice to hear that so many of our members are busy. A strong business climate affords many opportunities.
The Dow Jones just broke 13,000 and as we’ve come to understand, a strong economy allows insurance companies to be more competitive. When insurance companies become more competitive, rates usually decrease.
Strong economic factors allow large publicly traded companies to expand or otherwise seek to improve their bottom lines. This has provided the resources to drive our industry to even higher levels of performance. Like many other industries, telecommunications is on an upswing and we find ourselves in a desirable position.
When business is good, we tend to seek ways to reduce risk as a way to better protect our economic progress.
A decrease in accidents and injuries is a good way to reduce economic risk. With a good safety record, a company can take advantage of reduced insurance premiums, reducing operating costs and lowering overhead.
As NATE has grown and become the go-to resource for insurance companies; equipment manufacturers; safety training companies; and government entities; it helps get the word out to non-members. When non-members are compared to NATE guidelines, it leads to an effect that can be described by the expression: “a rising tide raises all ships.” When safety goes up industry-wide, the benefit is felt industry-wide.
A few short years ago, accidents were at an all-time low and insurance rates kept going up. This is because significant portions of insurance company revenues are based on the stock market and other investments.
We are just coming off a very bad year for accidents, but you couldn’t tell from the way insurance companies are reacting to greater market forces. While this seems inconsistent, it really reflects the larger picture in the insurance industry.
Just as companies that have low or no accidents are affected by general industry trends, those that do have accidents are placed under greater economic pressures and their renewal rates go up regardless of industry trends, sometimes very drastically.
Eventually these companies succumb to economic forces that become unsustainable. It seems to take a long time, but eventually corrections are made.
To protect your business, be sure safety is first in the hearts and minds of your supervisors, managers and employees. It is good business.
Don Doty is Vice President of Doty Moore Tower Services LLC of Cedar Hill, Texas and can be reached at 215-631-1302 or Don.Doty@StainlessLLC.com
Don Doty
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