Consultative Broker Briefing - V. V, No. 12

The Consultative Broker™ Briefing
Volume V, Number 12
A Free Publication of C.R. Ekern & Company
888.670.1177
www.crekern.com
Copyright, C. R. Ekern & Company, 2003

Client Centered Marketing

As the marketplace continues to flatten, there is an interesting phenomenon that is beginning to occur. Some carriers have recognized that they are now making money at the current rate structures. The result will be an increased appetite for both renewal and new business at these prices. Uh, oh . . . we’ve seen this one before!

The next step will be increased competition between carriers for this perceived “golden booty.” You know what that means, don’t you? Can you say “blindsided by your own carriers with a different broker?” (see also “The Lost Art of Broking.”)

Now, before I go any further, most of you dedicated readers know that we do not encourage blind marketplace competitions. Consultative Brokers do not throw their clients into the marketplace in an attempt to secure the cheapest price or to protect themselves. They understand that by doing so they have jeopardized their broker control. They do however practice what we call “Client Centered Marketing.”

Client Centered Marketing acknowledges the three sides of a successful transaction: the client, the carrier and the broker. It is the only professional way for you to protect your client and yourself in the changing marketplace against being blindsided.

Here are the steps to Client Centered Marketing:

Step 1 – Contact the current carrier 120 days in advance of renewal. Ask the underwriters what perception they have of the client and what you should anticipate the renewal to look like.

Step 2 – Meet with the client and provide a marketplace overview. Include in this discussion what the preliminary indications are from the incumbent carrier. Also, provide them with a marketplace analysis of how other carriers you represent might be likely to view the account. Now, here is the important part . . .ask your client if they wish the account to be marketed or would like you to work through the renewal with the incumbent carrier.

Step 3 (a) – In the event the client would like you to work through the renewal with the current carrier (without other broker competition, of course!) - Immediately set up a meeting with the carrier underwriters, the client and yourself. The purpose of the meeting is for the carrier to become very comfortable with the client. It also is in your best interests for the client to hear directly from the carrier what their intentions are. It insulates you against being surprised later on. It is imperative that you be present at this meeting in order to maintain your position as a partner and gatekeeper.

Step 3(b) – In the event the client would like their account marketed - You must take measures to outline all the carriers you will be approaching on their behalf. Make certain that there is an understanding of the great effort you will be going to, along with an acknowledgement that there will be no other brokers in the marketplace. You must emphasize the horror stories of what happens when multiple brokers are trying to tell a client story to the same carriers.

The remainder of the Client Centered Marketing approach revolves around your skillful positioning of the client in the marketplace. In the event you are working solely with the incumbent, it is imperative that they provide you with timely information and a renewal that is consistent with prior discussions. If you are involved in a marketing project with multiple carriers, your ability to make a skillful marketplace presentation will be judged by the method of communication. Simply throwing Acord applications at carriers is not the answer.

In our next edition of the Consultative Broker Briefing, we will show you how to make a skillful marketplace presentation utilizing effective executive summaries. This is the methodology that successful brokers use in order to attract potential carriers without “muddying” up the waters. So, if you keep reading, we will keep writing!

Best regards to all Consultative Brokers,

Rob Ekern
President
C.R. Ekern & Company

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Thank you.
C.R. Ekern & Company