Consultative Broker Briefing - V. VI, No. 8

The Consultative Broker™ Briefing
Volume VI, Number 8
A Free Publication of C.R. Ekern & Company
888.670.1177
www.crekern.com
Copyright, C. R. Ekern & Company, 2004

Special Announcement – C. R. Ekern & Company has just completed its first Consultative Brokerage University (CBU.) This intensive 2-½ day producer training session was a tremendous success. We are pleased to offer our Private Clients this unique opportunity to learn and practice Consultative Brokerage and Total Cost of Risk (TCOR.) More information on the CBU and the Attendee Survey is available here.

And now, this edition of the Consultative Broker Briefing...

Go Upstream

As I visit with Brokers across North America, there is one consistent message that I believe is critical to impart. If you don’t hear anything else, please get this…You must go upstream! By upstream, I mean go after the larger and more complicated accounts. Go where the competition isn’t.

I was speaking last week with a broker who relayed an interesting observation from one of his clients. This particular client had migrated from being the CFO of a large company to a smaller one. “What’s wrong with you insurance guys?” he chided. “When I was the CFO of a larger company, I rarely heard from brokers soliciting my business. Now I get calls daily from someone who wants to work on our insurance program!”

As a successful broker myself, let me tell you one of the best-kept secrets… There is less competition at the top than at the bottom! Why? Because there are less brokers that are confident enough to talk with a sophisticated CFO. Successful Consultative Brokers know this and regularly feast at the table of less competition. Here is how they get a leg up:

They are willing to become better business people. They recognize that a sophisticated client wants to deal with other sophisticated business people. They have taken the time and effort to sharpen their business skills. See our prior Briefing, “Be a Businessperson First” for more on this subject.

They talk in the language of their buyer. When having a client discussion or client presentation they make certain that they can relate the data directly to the client’s sales or business model.

They believe in the value of their organization. They understand that a sophisticated buyer does business with organizations and firms. This is the B to B (business to business) model. When bringing in their organization, they are institutionalizing their firm.

They understand Enterprise Risk. These brokers know that risk to a CFO goes well beyond the traditional property/casualty hazard risks. In fact, to many CFO’s, the hazard risk is the smallest part of their worry. These brokers are able to discuss such things as brand risk, currency fluctuation, trade credit risk and other issues that keep CFO’s awake at night.

They strongly communicate a clear Value Proposition. Not only can they communicate it, they believe it! They are very knowledgeable regarding the TCOR (Total Cost of Risk) formula and can demonstrate it in many ways. They are committed to bring value to their clients.

As the marketplace continues to flatten and eventually soften, the ability to go upstream will be the salvation of successful brokers and the firms they represent. The smart players are making plans for this transition right now. They are not willing to wait until the bottom falls out of the insurance commodity… leaving them high and dry!

Oh, one more thing. Today officially marks the 6^th anniversary of C.R. Ekern & Company. On July 1 of 1998, I left the mega-brokerage world. It was my belief that regional brokerages could benefit from a consultancy and training firm dedicated entirely to large account production techniques. A very special thanks to all of our Private Clients, friends and readers across North America. As we enter our 7^th year together, the best is yet to come!

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.

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Thank you.
C.R. Ekern & Company