Consultative Broker Briefing - V. IV, No. 3 - The Brokerage Selection Process

The Consultative Broker™ Briefing
Volume IV, Number 3
A Free Publication of C.R. Ekern & Company
888.670.1177
www.crekern.com
Copyright, C. R. Ekern & Company, 2002

"The Brokerage Selection Process – An Effective Client/Prospect Competition"

In our last edition of the Consultative Broker Briefing, we discussed the futility of the old Marketplace Selection Process. There are simply not enough carriers to go around. It is not in the client’s best interests. And it doesn’t allow a firm to differentiate itself. To make it even worse, the average hit ratio is a whopping 15%! We recommended all Consultative Brokers adopt the Brokerage Selection Process as their exclusive method of developing and retaining revenue.

The Brokerage Selection Process involves you and several other selected brokers competing for an account on a conceptual basis. The competitions never involve using the insurance carriers as the basis of differentiation. The selected broker is then given complete access to the marketplace and the exclusive authority to negotiate the renewal terms on behalf of the client.

Here are the traits of a successful Brokerage Selection Competition:

It may take you months (or in some limited cases, a couple of years) to set the deal up the right way. This will involve utilizing all of the Consultative Brokerage Principles; selecting the right prospect, building quality relationships, providing resource capabilities, institutionalizing your firm, and exercising broker control.
You must practice extreme patience and utilize every prospect contact as an opportunity to differentiate your organization, learn issues, deploy resources, and establish deeper relationships.
During the prospecting cycle take every opportunity to “Put the Fix In!” Throughout the cycle you need to constantly review with the prospect how you can bring them value.
Always point toward your ability to reduce your prospect’s Total Cost of Risk. It is your ace in the hole against the price shooters.
Keep your powder dry! Don’t shoot until you can see the whites of their eyes! If this entails missing an opportunity this time, it will make it better in the future. Have you ever quoted an account and found out later your premium was ridiculously high? What did that say about you?

Here is why the Brokerage Selection Process is the best method for all parties concerned:

Most prospect/clients are very busy. They do not have the time to be interviewed by the multiple loss control engineers that are sent by agent/brokers to analyze their account in order to present bids. They simply do not consider this the best use of their time.
The Process allows each of the agent/brokers to leverage the benefit of their quality organizations. The firms that have invested in Consultative Brokerage training and resources will win based upon merit.
The selected agent/broker will speak with one voice in the crowded marketplace on behalf of the client.
You are assured of getting paid for your work. Compare this to the expensive endeavor of preparing bids that are usually unsuccessful.

Firms that are learning and practicing the Consultative Brokerage Selection Process are reporting tremendous results. Their hit ratios are skyrocketing and the size of their accounts is increasing.

In our next edition we will discuss some of the do’s and don’ts of a successful Brokerage Selection Competition. In the meantime, please feel free to visit our website for more information on this and other Consultative Brokerage training issues.

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