Consultative Broker Briefing - V. IV, No. 9

The Consultative Broker™ Briefing
Volume IV, Number 9
A Free Publication of C.R. Ekern & Company
888.670.1177
www.crekern.com
Copyright, C. R. Ekern & Company, 2002

"Avoid the Big Chill"

With July 1st just around the corner, many of us are preparing for The Big Chill. “The Big Chill in July”, you say, “what on earth are you talking about Ekern?” No, I am not talking about the weather, or the great movie. The Big Chill is the reception that many of us may receive when delivering July 1st renewal terms to our clients.

We already know what some of the terms are going to look like, and it’s not a pretty sight. The brokers that have not followed some of the Consultative Brokerage Techniques might find themselves out in the cold! Fortunately, as readers of the Consultative Broker Briefing, you have the skills and perspective needed to thaw a potentially icy situation.

Here are some additional thoughts on ways you can really warm up the hearts of your clients when delivering the cold hard facts:

Review the impact your loss control and resource capabilities have provided the client in terms of reduced costs. For instance, a reduction in workers’ compensation claims has an “iceberg” effect on the client’s income statement. As an example, if you decreased your client’s losses by $25,000, there is a multiple of at least 2 for the soft hidden costs (some use a much higher multiple.)
Demonstrate the continued impact your firm will have on your clients’ costs throughout the course of the coming year. Give them quantifiable goals in the area of cost reduction that can become benchmarks for quality.
On larger accounts, consider converting to a fee structure versus commission. It is a win/win compensation system that allows you to be perceived as a client partner. For further information on Fee Compensation, don’t miss our next Briefing.
Benchmark the costs of your client’s premiums over the past several years against their total revenues. Chances are, even with the increase in premiums, the rate per thousand of sales may have decreased due to tremendous growth in your client’s revenues.

Consultative Brokers are constantly seeking ways to turn negative situations into opportunities. We are skilled at delivering client value through the use of resources and reduced costs. Those of you that utilize your Consultative Brokerage skills will only find ice in your July 4^th beverages!

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