Consultative Broker Briefing - Volume III, Number 5

The Consultative Broker™ Briefing
Volume III, Number 5
A Publication of C.R. Ekern & Company
888.670.1177
www.crekern.com
Copyright, C. R. Ekern & Company, 2001

"Consultative Brokers are Gatekeepers of Resources"

I spoke recently with a senior representative of a major insurance carrier. The topic of our conversation was the carrier’s interest in reducing their fixed overhead. In fact, this person felt that many carriers will be looking to reduce their operating ratios by as much as 10%.

So what does this mean to brokers and clients?

In the future, many carriers will not be providing some of the services that you and your clients have come to rely upon. Some of these services may be in the area of loss control, claims analysis, or specialized industry information. Yet, your clients need these valuable services. So, what is the answer?

The successful Consultative Brokerage firms of the future will be considered gatekeepers of resources and information for client service. They will be much more than simply traditional insurance providers. They will need to do this, or their top clients and prospects will find it elsewhere.

We know this is true, because it is already happening. When you see a broker of record take place in mid-term, there is always a reason. Usually the client has said those famous words, “We think we have outgrown you.” They have been shown a whole new array of valuable services that the broker has demonstrated using the concept of TCOR (Total Cost of Risk.) When that happens, the holding broker is usually “fired by fax.”

So here are some tips for successful Consultative Brokers to use in servicing and soliciting upper middle market commercial accounts:

Always adopt a client strategy around the utilization of specialized resources. The other brokers can copy your insurance contract, but not your strategy.
Make certain that your prospects and clients value these services; otherwise your strategy is flawed. You can do this by using the concept of TCOR.
Never allow yourself to be perceived as simply an insurance broker. You are a Gatekeeper of Resources.

The Consultative Brokerages that have implemented these strategies are experiencing tremendous results. Their brokers are finding quality new accounts and the firms are experiencing outstanding growth. We will keep talking about this in future installments of the Consultative Brokerage Briefing.

Best regards to all Consultative Brokers,

Rob Ekern
President
C.R. Ekern & Company

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Consultative Brokerage® Techniques are utilized by agents and brokers across North America in the development and retention of upper middle market revenues. The Consultative Broker Briefing is delivered electronically free of charge to selected agents, brokers, and other insurance professionals across North America. To subscribe to The Consultative Broker Briefing, please click here.

Thank you.
C.R. Ekern & Company