The Consultative Broker™ Briefing
Volume V, Number 4
A Free Publication of C.R. Ekern & Company
888.670.1177
www.crekern.com
Copyright, C. R. Ekern & Company, 2007

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The Four Quadrants of Resources

You have heard this from us before, and you will definitely hear it again:  It is the application of resource capabilities that differentiates producers and their organizations in the current marketplace.  Why?  Because there simply are not enough carriers to go around in the old marketplace selection process.  That is why many of you are seeing an increasing number of Broker of Record letters.

We have been preaching the Brokerage Selection process for many years.  As a successful broker myself, I know the power it provides you as a Consultative Broker.  There is simply nothing like it.  Being appointed as the new broker is a beautiful thing!  Let the other firms scramble for markets, clog up their systems, and ruin their production with a 15% hit ratio.  As Consultative Brokers you know how to effectively work the Brokerage Selection process.

One of the keys to the Brokerage Selection process is the ability to compete on a conceptual basis, demonstrating your true impact on a buyer’s financial statement.  This is done most effectively by quantifying your impact on TCOR by utilizing your specific capabilities.

A successful broker understands that there are Four Quadrants of Resources.  Inside of each transaction, they are constantly evaluating how to deliver capabilities from any (or all) of these quadrants.

Here are the Four Quadrants of Resources that you must become adept at delivering to your clients and prospects:

Loss Control Capabilities – This includes the application of behavior modification loss control services.  Not just the usual inspections, but also the ability to impact a client’s operations through changing employee actions (e.g. ergonomics, driving, etc.)

Claims Management Capabilities – The ability to compress claim costs is one of the most powerful tools in your arsenal.  Some of the specific compression tools are aggressive reserve analysis, nurse practitioners, and return to work programs.  The producers that are learning to sell claim cost compression are “running away with the hardware!”

Specialty Resource Capabilities – These include the areas of environmental experts, forensic accountants, actuarial services, and work comp e-mod calculators.  These and other resources are used depending upon the specific needs of an account.

Industry Specific Capabilities – The largest brokers have formed practice groups around specific industries.  These are merely a concentration of resource capabilities that can be applied across an entire industry (e.g. construction-specific loss control services.)  When calling on clients within the chosen industry, the perception of industry expertise is created.

The Consultative Brokers that are learning to sell these services and quantify their impact are hearing those famous words, “We think we have outgrown our current broker.”  Talk about a beautiful thing!  Of course, you never want to hear that about your firm.  Don’t worry, you won’t.  That is why we keep writing the Consultative Broker Briefing.  If you keep reading, I will keep writing.

By the way, a huge Kudos and a tip of the Consultative Brokerage hat to Brewer & Lord, our long-time friends and clients in the Boston area.  Brewer & Lord was the cover story and “Marketing Agency of the Month” for the February 2003 edition of Rough Notes magazine (you can read the entire article online here.)  It’s a great success story about a firm that has really embraced the Consultative Brokerage principles.  Way to go Brewer & Lord!

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