The Consultative Broker™ Briefing
Volume V, Number 13
A Free Publication of C.R. Ekern & Company
888.670.1177
www.crekern.com
Copyright, C. R. Ekern & Company, 2007

---

Executive Summaries: A Key Marketing Strategy

In our last edition of The Consultative Broker Briefing, we discussed the concept of “Client Centered Marketing.”  This is the technique that skillful Consultative Brokers use to make certain that their clients are best served during a period of softening insurance costs.  It is the best methodology we know of to safeguard your credibility with clients and the marketplace.

The preparation and presentation of an effective executive summary is how top-notch brokers distinguish themselves from their competition.  They utilize the executive summary as a way to ascertain the appetite of prospective carriers.  An effective executive summary provides an astute underwriter with all the information required to provide an indication of their potential position on the account.  A professional underwriter appreciates this approach, as it saves them the time required to wade through the traditional submissions.

“Oh, but wait” you say, “Our carriers will never provide us a quote based solely on an executive summary.”  You are entirely correct.  Remember that the executive summary is not intended to solicit a quote, only a preliminary indication of a potential carrier’s appetite for the risk.  It is a tool to provide you with the basis of a client discussion of potential carriers prior to making the full marketplace submission.

A concise executive summary should only be two pages in length and should provide the underwriter with a summary of the pertinent data.  Here is what needs to be included:

The Account Overview – A one-paragraph description of the industry, geographic territory, number of employees, and why the client is a leader in their field.

Financial Condition and History – A simple analysis of the client’s financial statements.  This analysis should show not just the profit/loss and equity data, but also their cash flows after depreciation expense.  This will provide an underwriter with the most accurate picture of the client’s ability to retain risk.

Program Design and Underwriting Synopsis – A concise table showing the rating basis of payrolls, vehicles, property values, number of employees, etc.  This section should also indicate how the current program is structured, including premiums.

Loss History – A concise table demonstrating the frequency and severity of current losses.  There should be a short description of any losses that contribute to the severity.

Loss Control Issues and Solutions – Here is your chance to really shine!  If a concise submission has been made to this point, you can now demonstrate to the underwriters how this account can be “managed” to ultimate profitability.  This is the part that Consultative Brokers live for, as it provides them with the ability to impact losses and the underwriter’s perception.

Summary and Conclusion – This section restates the positive points of the account and provides an opportunity to further guide the underwriters.  Tell them why this account is superior and ask for what you want.  The entire executive summary has led up to this moment . . Seize the day!!!

There is one more big reason why quality executive summaries are an important tool to Consultative Brokers.  In the preparation of a concise summary, it forces them to think through the strategy for the account.  They use it as a basis for checking their own account knowledge and value.  If they can’t demonstrate it to the underwriters, chances are they don’t understand it themselves.

Client Centered Marketing, with the utilization of a quality executive summary, is the centerpiece of the renewal project.  Remember, a successful renewal is an ongoing project, not a one-day event!

Best regards to all Consultative Brokers,

Rob Ekern
President
C.R. Ekern & Company

Consultative Broker Briefing Main Menu

---

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