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 IV, Number 19
A Free Publication of C.R. Ekern & Company
888.670.1177
www.crekern.com
Copyright, C. R. Ekern & Company, 2007

"Becoming a Purveyor of Value"

Value is one of the most misunderstood words in our industry. For years brokers and agents have told clients that we bring them “value.” Unfortunately, in the 90’s, many brokers and clients used the terms “value” and “price” interchangeably. They are not the same thing.

Buyers are learning how to obtain tangible Value from their brokers. It starts with their understanding of the ways their broker can affect costs outside of the insurance policy. No matter the marketplace condition, they are constantly searching for ways to obtain true long-term Value for their organizations.

Here are some questions that astute clients ask when looking for Value:

Does your firm offer resource capabilities? The true definition of Value revolves around the application of resource capabilities. Premium costs fluctuate over the years, but the impact of resources is a constant.

Do you know how to apply these resources to benefit us? It is the difference between benefits and features. Buyers want to work with brokers that understand how to apply resources to the “pressure points” of cost.

Can you interact with other members of our firm? Value must be distributed throughout an organization. That translates into interaction with a number of client team-members. Purveyors of Value must be able to communicate and deliver the vision across the board.

Are you able to demonstrate the impact you can make? Value must be demonstrated in the form of financial returns. Buyers need this information in order to validate and assess a broker’s effectiveness. The Consultative Brokerages that can demonstrate this impact are always able to answer the question, “What have you done for us?”

Do you have substance, or are you a “one trick pony?” Value must be replicable from one year to the next. That is why the price of insurance is not a proper measure of Value. Astute buyers want a long-term plan that includes multiple ways of reducing costs.

As a Consultative Broker, you must know how to answer these questions. In fact, in most situations, you should answer them before being asked. It is all about understanding your clients and what brings them Value. That is how you will continue to be known as a Purveyor of Value.

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.