The Consultative Broker™ Briefing
Volume III, Number 6
A Publication of C.R. Ekern & Company
888.670.1177
www.crekern.com
Copyright, C. R. Ekern & Company, 2007

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"Successful Strategies For 90-Day Extensions"

You can expect your telephones to start ringing in the next several days, and continue ringing throughout the first half of July.  These calls will be coming from clients of brokers who were "surprised" by their current agent or broker.  You see, most of these brokers showed up several days before the renewal (or several hours!) and gave the client the bad news - "Your premiums have skyrocketed, your limits have been reduced, and your coverages have been restricted."  The discussion ended with the agent/broker providing the infamous "90-day extension."

So, here is where you come in.  Maybe this is a firm that you have prospected before, or someone who you know socially, or maybe they are simply calling you in because of your firm's reputation.  Whatever the reason, this invitation to "work on our program" during the 90-day extension is a recipe for disaster.  Unless, of course, you follow these Consultative Brokerage guidelines:

1. Expect the prospect to put some skin in the game.  Remember that without it, you are the prospect!  This is a time when they need you, because they are petrified that the insurance program may be unaffordable this year.  Do not give up your leverage. 

2. Do not work with Snakes.  You know what I mean.  This is the firm that you dealt with in the past, and they treated you unfairly.  Do not expect a snake to change its skin.  MOVE ON! 

3. Before agreeing to work on their account with a short fuse, slow the process down.  They may be asking you to work on their account solely for the purpose of keeping the other broker honest.  You do not get paid to be a policeman - your role is to create revenue. 

4. Find out about the issues and potential resource needs before spending time with the insurance policies.  You may not be able to actually reduce the premiums, but you can reduce the prospect's Total Cost of Risk (TCOR) through the application of specialized resources.

5. Work only on a Broker of Record appointment.  There are only a handful of insurance carriers with an appetite for any account.  If the client sends multiple brokerage firms into the marketplace, chances are the marketplace will not respond favorably.  Explain to the prospect that, in order to represent their best interests, your firm will need to be appointed as the "exclusive representative" in the marketplace.  In the event they are not willing to do this, MOVE ON!

As Consultative Brokers you have a knowledge level that is higher than most of your competitors. Use it when you are asked to participate in a 90-day extension exercise. By following these principles your time will be spent creating revenue rather than participating in a fire drill!

We would like to hear from you regarding your Consultative Brokerage experiences with 90-day extensions or any other unique experiences during this hard market.  Give us your stories, and with your permission, we may share them with our readers.  Also, if you have any subjects that you would like us to address in future Briefings, please feel free to send us an email at briefing@crekern.com.

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