Consultative Broker Briefing - V. V, No. 2 - 2002 Year-End Survey Results

The Consultative Broker™ Briefing
Volume V, Number 2
A Free Publication of C.R. Ekern & Company
888.670.1177
www.crekern.com
Copyright, C. R. Ekern & Company, 2003

Results of 2002 Year-End Readership Survey

The results are in from the Consultative Broker Briefing readership survey. Once again, we are very appreciative of your taking the time to give us your insights. It was great hearing from many of you across North America.

Well, it comes as no surprise that the hard market has continued through the January renewal season. However, when compared to last year, it does appear that some of the increases have slowed down. Not in all cases of course, but things do appear to be flattening out. There have even been some reports of patchy craziness in some reduced pricing. These decreases were few and far between, but we’re starting to see the hard market lose some of its steam.

Here are some specific results from our 2002 Year-End Readership Survey:

Short Supply of Carriers. There is still a select number of carriers available for any deal. Like last year, 88% believe that there are less than four potential carriers available. In fact, 44% of you are finding that there are only two companies with appetites for a given transaction. These results underline the importance of learning how to compete on a conceptual basis in the brokerage selection process. When there are so few carriers, you cannot use the marketplace as a point of competition.
Hard Market Losing Steam. Premium increases are flattening in the 20% range. Last year the majority of you reported increases much larger than 20%. The number of responses indicating an average increase of 20% or less jumped three times over last year’s. This leads us to believe that the marketplace is adjusting. Of course that also means that many of your clients have adjusted also. Therefore, it is vital that in the coming year you continue to show them how your firm has helped them reduce costs in all areas.
Not Much Competition. Wow! This is the Platinum Age for attracting new clients, yet most of you (66%) report that the competition level is “average” or “below average.” What a perfect time for those of you who are Consultative Brokers. Let the other guys deliver the usual renewal increases while you show their clients how to reduce their costs.
Target Accounts Getting Bigger. 44% of you say that your target accounts are $25,000 in revenues or higher. That’s great! As you continue to grow this upper middle market segment of your book, your reliance on commodity will decrease and your ability to differentiate your firm will increase.
Loss Control Services More Important. During the soft market of 1999, C.R. Ekern & Company helped Conning and Company do a study of brokerages. At that time, only 15% of brokers felt that loss control was very important. This amount has almost tripled to 41% of our survey reporting that loss control is very important. Why? Because Consultative Brokers know that loss control services can provide the most effective impact on their clients’ costs. Without loss control services in place, brokers may hear those fateful words - ”We think we have outgrown you.”

Thanks again to all of you. The Consultative Broker Briefing is being distributed and read by thousands of you working brokers. We publish this regularly for you. It is great that you are willing to share your thoughts once a year with your colleagues across North America.

For the complete results of our survey, please visit our 2002 Readership Survey Results page.

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