Mike Shea, President, SGP Advisors
Mike Shea, president of SGP Advisors, spoke with Invest: about the firm’s growth strategy and how it leverages its size to cater to small- and medium-sized businesses. He explained the challenges and benefits of operating in Florida, and how the firm navigates its clients’ changing needs.
What have been some recent achievements for SGP Advisors?
One of our biggest achievements is expanding our agency into the private client insurance space during a challenging time to do so. It was a growth goal in terms of product expansion and scope of services. We were very methodical about how to do it, and brought the right team on at the right time. It was a challenging situation in year one because of the hurricanes, but has rounded out our growth plan and added the final piece of the puzzle that allows us to sit down with a business or individual and talk about the full scope of their insurance needs. It will be a challenge to continue to grow in that particular space, but we’re proud of that achievement. We went through a big technology change last year from an operating system standpoint, which was a monumental task that required us to position the agency to take the next steps into our long-term growth plan.
What have been some new products you’ve introduced or focused on?
Data continues to be a major focus of ours. We don’t necessarily focus on new products, but honing in on and expanding our existing product offerings, and to be strategic about the types of clients we serve and our relationships with the markets we enter. At this point, we’ve rounded ourselves out to offer all the products we want to offer. We’re not trying to be all things to everybody. We’re a niche business with a niche focus.
What services or specialties have been most in demand recently, and do you anticipate any shifts in client needs as the business environment continues to evolve?
The cyber insurance market and cyber security risk environment has been the biggest shift we’ve seen, and where we are seeing the most concern and transition into how that product is procured. That has been a major focus of ours and a major topic of conversation. Outside of the hurricane challenges with property loss, we’re seeing the most claims activity in cyber insurance in terms of overall frequency. That continues to be a hot button issue, along with AI. With things transitioning more to an online format, everything we do is with our phones and our computers. Everything is being digitized, and we’re seeing exposure is a big risk, not just for our clients but for any business. That’s been an area of growth for us, and an area of constant education and risk management we provide for our clients.
What emerging trends are you observing specific to the Tampa Bay area, and how is SGP Advisors positioning itself to capitalize on these developments?
Locally, property insurance is a big issue because of hurricanes and flooding. That’s the biggest concern for businesses and individuals. Commercial property, in particular, has become tremendously expensive. It impacts small businesses who may be in a lease that requires they pay for insurance, and some of those businesses can’t sustain it. It also impacts landlords. It’s a trickle down effect, and it surprises me that it isn’t talked about more, maybe because the individual insurance is more emotional. Commercial property is a major concern and will become a major problem if something isn’t figured out across the entire state of Florida.
What opportunities or challenges do you foresee for your clients and how are you advising your clients to manage these economic pressures?
In terms of economic challenges, our clients are less impacted by economic shifts. We work with lawyers, doctors, and other service providers. The economy doesn’t affect them as much. From a pure insurance product focus, we’ve started to see people either look to cut costs and look to take on more risk, or reduce coverage. People are most focused on their premiums to offset costs that cut into the margins of their business.
What do you see as the biggest opportunities for growth for SGP Advisors over the next two to three years?
There’s been a significant amount of consolidation in our industry, and we are committed to remaining independent and staying on the path we have strategically and thoughtfully mapped out for our next stages of growth. The consolidation of our industry is creating opportunities for us because there are many small and middle-market businesses searching for their insurance needs. We’re focused on continuing to expand our service model and bring the same culture we’ve built over the last 20 years to all of our clients. That’s going to create a significant opportunity for SGP in the Tampa Bay area and across the entire country. The gap is getting wider and wider in terms of how small and middle market businesses have to pay for insurance before they can have somebody like us to talk to them about their needs and advise them about their risks, instead of calling a 1-800 service number. We’re excited and optimistic.
