The Consultative Broker™ Briefing
Volume III, Number 8
A Free Publication of C.R. Ekern & Company
888.670.1177
www.crekern.com
Copyright, C. R. Ekern & Company, 2007

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"Stewardship Reports – The Only Antidote to Craziness"

(Part 2 of a 2 part series)
(Click here for Part 1 of 2)

In our previous edition of the Consultative Broker™ Briefing, we spoke about the importance of Stewardship Reports and gave you some general thoughts concerning their presentation to clients.  As you will recall, Consultative Brokers know that Stewardship Reports are critical to the retention and growth of large accounts.  They are the only technique you can use to fully demonstrate your expertise, capabilities, and resources to a client.

In discussing Stewardship Reports with our Consultative Brokerage Clients, I am often asked these questions:

Which accounts should receive Stewardship Reports? 

Stewardship Reports should be done on your absolute largest accounts.  I call these “Franchise Accounts.”  Each of you as producers has a small number of accounts that make up a very large portion of your book.  These are the ones with the highest level of expectations and are the top targets of other brokers.

What information do I need?

In addition to the traditional insurance documents and loss data, you should have financial statements and knowledge of the client’s strategic plans.  Your Stewardship Report must focus on ways your firm has and will impact the client’s balance sheet and bring value in the future.

What is the formula for an effective Stewardship Report?

Here are the seven sections of a well-presented Stewardship Report: 

1. Brief introduction to your firm - The history, expertise, and team members.

2. Service review of completed projects.

3. Demonstration of Past Value - Show three ways your firm has reduced the client’s TCOR (Total Cost of Risk) over the past eighteen months.

4. Marketplace Review - Provide your client with “straight talk” about the condition of the marketplace for their specific industry.  You may wish to visit several of the websites featured in the Consultative Broker Briefing #1.

5. Demonstration of Anticipated Value - Show three ways your firm will impact the client’s TCOR over the next eighteen months.  Use the client’s balance sheet and strategic plans to demonstrate your value.

6. Make Commitments - Give the client a yardstick to measure you by in the future.

7. Obtain Validation - Remember that your strategic purpose of the Stewardship Report is to establish and maintain Broker Control.  Without a validation from the client, you cannot ascertain your position.

What happens if my client is not interested in a Stewardship Report or will not give us Validation during our presentation?

In this case, you are probably in deep trouble and are weeks away from being fired!  You must look your client in the eye and ask the toughest question any broker ever has to ask . . . “Is there a problem that we should discuss?”  Be prepared for the answer and speak candidly - this is the best time for this discussion.  You can fix the problems now, not after the Broker of Record Letter goes to someone else!

Consultative Brokers across North America are presenting Stewardship Reports in August for their January renewals.  They know that if they wait until September it may be too late, as other brokers may already be in the client’s water.  They have recognized that the effort required now will pay great dividends in December.  Stewardship Reports are not only the antidote for marketplace craziness, they are also the key to client retention.

This week, we say “Bon Voyage” to our good friend and colleague, Lex Latkovski, CPCU, ARM, Client Services Director of C. R. Ekern & Company.  Lex will be following his dream by spending 6 weeks traveling and hiking throughout South Korea and China.  “Godspeed Lexicus.”  We pray for your safe travels and look forward to your return in early September. 

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