Consultative Broker Briefing




	Rob Ekern's Book - "Consultative Brokerage®: A Value Strategy - Featuring TCOR" is now available from National Underwriter!

The Consultative Broker™ Briefing
Volume III, Number 12
A Free Publication of C.R. Ekern & Company
888.670.1177
www.crekern.com
Copyright, C. R. Ekern & Company, 2007

"Everyone's a Suspect!"

I am hearing the same story across North America from brokers and agents. "We are having one of our best years ever!" they exclaim, "Our book of business has grown by about 30% and we are delighted." When I ask about growth through new business however, much of the giddiness evaporates. It seems that new business has been left behind in the warm glow of rising rates.

It is simple to understand - brokers and agents are spending so much time trying to hold their current accounts together, that they have little time to actually prospect. Anyway, with the rates increasing, they don't need to add new business to be successful. The marketplace will now do for them what they could not do for themselves.

Balderdash, Poppycock, Bull Droppings!

Here are the facts about this current hard marketplace:

While we are still early in the hard market cycle, it will eventually turn around.

Successful brokers wrote some of their best accounts in the last hard market.

For the next twelve months, virtually everyone is a suspect!

Let's spend a little time talking about the last point - virtually everyone is a suspect. Notice that I didn't use the word prospect. Just because a firm has a problem with their insurance price doesn't make them a good prospect. As a Consultative Broker™ you know that if price is the only issue, they are not a good buyer. Your strategy is to demonstrate your impact on Total Cost of Risk (TCOR.) This is the only away to attract quality prospects and convert them into long-term clients.

As regards the point of not having enough time to develop prospects, here is the deal - the marketplace has made it easier for you! After all, "virtually everyone is a suspect." It will require less time to identify and create quality opportunities. A number of doors that had been closed to you are now wide open. In fact several of these doors no longer even have hinges!

Don't believe me? OK, try this. Call five prospects that have resisted you in the past. Tell them that your organization is working with a number of firms like theirs in reducing their Total Cost of Risk. Ask for a short meeting in order to explain ways that they can reduce their TCOR in this very difficult insurance marketplace. I will bet you a Burrito the next time you come to Phoenix that you receive a warm welcome from a number of these prospects.

So here is the point. Don't allow yourself to be lulled to sleep during the next twelve months as your book grows because of marketplace conditions. Successful Consultative Brokers will be growing their books through new revenues and let the marketplace take care of the rest. They know that virtually everyone is a suspect.

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.