Consultative Broker Briefing - V. V, No. 9 - The Ekern TCOR Methodology

The Consultative Broker™ Briefing
Volume V, Number 9
A Free Publication of C.R. Ekern & Company
888.670.1177
www.crekern.com
Copyright, C. R. Ekern & Company, 2003

The Ekern TCOR Methodology

Several years ago when I was a working broker, the term “Value Added Services” came into vogue. The mega-brokers coined it as a fuzzy description of their points of differentiation. The problem was that nobody (including the brokers themselves!) knew exactly what the term “Value Added Services” meant.

Why? Because until recently, with the adoption of the Ekern TCOR Methodology, there was no way to quantify it. In most cases a broker’s Value Added Services merely consisted of a list of features they could offer a client. And that doesn’t feed the Bulldog!

Consultative Brokers are learning new ways to demonstrate their actual value to clients through the application and quantification of resource capabilities. They know that their value added proposition is the difference between price and long-term cost. Brokers that utilize this approach can actually demonstrate true value.

One of the keys to the Ekern TCOR Methodology is the ability to drive your impact to the client or prospect’s balance sheet. This is done through the systematic utilization and quantification of resources. Effective Consultative Brokers are now competing for accounts by showing the buyer how they improve profitability. When this occurs, the competition is not about the insurance carrier – it’s about the brokerage that brings the most value.

There are four major components to the Ekern TCOR Methodology. They are:

Risk Financing Costs – The price of insurance.
The Loss Costs – Not simply the costs of the losses on a loss run, but also the impact to people, places and things from a business opportunity cost perspective.
Administrative Costs – Your ability to assist the client to improve the productivity of their personnel.
Taxes and Fees – In most cases this is a multiple of the risk financing costs.

We have been talking about and training the Ekern TCOR Methodology for five years. It is really gratifying to see the number of regional brokerage firms that are adopting our approach. Additionally, one of the nation’s major insurance carriers is about to launch a campaign based primarily on our teachings. It is a great validation in the industry to the Ekern Methodology.

The Ekern TCOR Methodology is just one aspect of our Consultative Brokerage Development Training. After all, as a Consultative Broker, everything you do must be client-driven and provide you with an improved ability to attract and retain quality accounts. In order to be fully utilized, the Ekern Methodology must be integrated with stewardship reports, new business presentations, client service, large account handling and your business culture. That’s Consultative Brokerage and your value proposition. If you keep reading, we will keep talking about it.

Best regards to all Consultative Brokers,

Rob Ekern
President
C.R. Ekern & Company

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Thank you.
C.R. Ekern & Company