The Consultative Broker™ Briefing
Volume III, Number 4
A Publication of C.R. Ekern & Company
888.670.1177
www.crekern.com
Copyright, C. R. Ekern & Company, 2001

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"Consultative Brokerage Strategies for July 1 Accounts"

Many of you across the country are now working on key July 1 accounts.  Some are renewals and others are new business opportunities.  What we know is that the marketplace is in shambles, and the bullets are flying in every direction.  So here is the question:  How does a Consultative Broker work on these accounts effectively?

First of all, here are some valuable assumptions:

1. There are a select number of insurance companies in your arsenal.

2. The renewal terms in July may be worse than January because of reinsurance treaties.

3. The buyers are not in the dark about changes in the marketplace conditions.

4. The fact that you are offering an insurance policy with excellent service may not be enough.

So, what is the answer?

1. You must know at least three issues that are important to the client. These issues must revolve around client concerns other than the insurance.  They need to be ways that you can impact their TCOR (Total Cost of Risk.)

2. You need to be prepared to discuss alternatives to the traditional insurance program.  These can range from risk financing options, deductibles, and alternative program design.  You must be able to discuss these, or someone else will.

3.  Do not get involved in accounts that are simply “testing the marketplace” or keeping their broker “honest.”  If you proceed you will become what Consultative Brokers call “Cannon Fodder”!

4. In the event you get called into an account at the last minute, it usually means that their incumbent broker has given the buyer the bad news.  These are great opportunities under one set of circumstances - That they appoint you as the broker with a Broker of Record Letter.  If they are not willing to do that, walk (Re-read number 3!)

5.  Deliver the bad news early!  It is not the ability to deliver good news that separates successful firms from the rest.  Anyone can do that.  It is the ability to provide the bad news.  Do not try to hide the facts - they will eventually surface.  Usually, at the worst time possible.

6. Lastly, do not be afraid of your renewals.  We are all in the same boat.  Those of you who practice the principles of Consultative Brokerage will prosper.

We will keep talking about these and other concerns in future issues of the Consultative Brokerage Briefing.

Don't forget the Spring 2001 Consultative Brokerage Regional Summits hosted by the CPCU Chapters of Minneapolis, Houston and Los Angeles. For more information please visit our Reginonal Summit Webpage.

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.

Copyright 2007 C.R. Ekern & Company