Consultative Broker Briefing - V. III, No. 7 - Stewardship Reports

The Consultative Broker™ Briefing
Volume III, Number 7
A Publication of C.R. Ekern & Company
888.670.1177
www.crekern.com
Copyright, C. R. Ekern & Company, 2001

"Stewardship Reports – The Only Antidote to Craziness"

(Part 1 of a 2 part series)

I have good news and bad news. Which would you like first? Here is the good news… You have just finished one of the toughest July renewal seasons in many years. The bad news? It will probably be worse in January!

Across North America brokers found themselves in very difficult positions. They had to face their largest clients and explain the difficulties of the marketplace - Higher premiums, larger deductibles, capacity problems, and a general upheaval. In many cases, these discussions took place days, hours, or minutes before the current program’s expiration (and in some cases, even after the expiration!)

During these discussions there were many stunned clients. A large number of these clients felt betrayed, or at best angry, about the short notice. This feeling of betrayal does not bode well for that broker in the future. I know this because I am actually getting these calls from my old clients expressing their rage and asking my opinion on what they should do.

So, how do successful brokers handle these situations? They do not let them come up! They recognize that the Good Lord himself cannot control the wild constrictions of the insurance marketplace. For them to attempt to hide it from clients will only make things worse. They understand that the clients will ultimately learn the truth.

Consultative Brokers know that Stewardship Reports are the only antidote for the craziness of the marketplace. They know that Stewardship Report presentations are the only time in which they can provide the client with quality information without the emotion of the renewal. The Stewardship Report is used to reinforce the value of the brokerage firm and demonstrate the impact on the client’s balance sheet.

You must do Stewardship Reports right now for your largest January renewals. These reports can’t wait until September or October. If you wait, there may already be other brokers in the water. Once that begins, you will be spending all your time protecting your best interests, not necessarily the client’s!

Here are some important thoughts about the value of Stewardship Reports:

They are done at a time when the heat is off the renewal process. This allows successful Consultative Brokers to focus on client issues rather than renewal pricing.
A Stewardship Report is a great time to build relationships. In many cases, these meetings will include client team members that you have not met in the past.
A skillful Stewardship Report provides a Consultative Broker with the opportunity to discuss marketplace changes and begin a renewal strategy in partnership with the client.
These are not sales sessions. The Stewardship presentation must outline the impact of your past representation.
The Stewardship Report should be presented in a formal business setting, not a crowed restaurant.
You must be prepared to ask and answer tough questions about the marketplace and your firm’s strategy to protect the client’s best interest. In fact, whether or not the question is asked, you must answer it!

The timely delivery of a Stewardship Report allows Consultative Brokerages to greatly reduce the stress around renewal time. If properly executed, the client has been appropriately prepared for the marketplace turmoil, and has understood the unique value the brokerage firm has brought to the table.

The proper execution of a Stewardship Report is such an important feature that our next Consultative Broker Briefing will focus entirely on that subject.

(Click here for Part 2 of 2 on Stewardship Reports)

Best regards to all Consultative Brokers,

Rob Ekern
President
C.R. Ekern & Company

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Thank you.
C.R. Ekern & Company