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 VI, Number 3
A Free Publication of C.R. Ekern & Company
888.670.1177
www.crekern.com
Copyright, C. R. Ekern & Company, 2007

A Platform for Quality Cross Sales

I was speaking with a benefits broker recently who asked a very interesting question. “How do the concepts of TCOR and Consultative Brokerage apply to our benefits industry?” he asked. “I can see some similarities and am interested in the practical application.”

You might be surprised to learn that Consultative Brokerage is a concept that was born in the benefits business. As any good benefits producer will tell you, they can’t use the carriers to differentiate themselves. Many brokers represent the same carriers, and for the most part, carriers will provide quotes to them all. Imagine that. Therefore, they have always used services and ways to reduce a client’s costs as the method of differentiation.

In order to effectively apply the Total Cost of Risk (TCOR) concept to the benefits business, you must think on two levels: 1) What can we do to reduce our client’s claim costs and indirect costs, and 2) How does our service reduce our client’s administration costs? A successful Consultative Benefits Broker is always looking for ways to deploy specialized resources to reduce these costs. These resources include such services as compliance assistance, enrollment assistance, TPA expertise in claim reduction, network negotiations, and availability to quality information.

Please bear in mind that none of this means anything if you cannot quantify it and demonstrate it on the client’s balance sheet from both a top and bottom line perspective. This is your main point of differentiation. Without it, you are only providing the prospect or client with a list of features. It is the impact of TCOR that is most essential.

TCOR as a concept translates very effectively to the benefits industry. Frankly, everything that your business has developed by way of services is aimed at the results of TCOR improvement. Once you master these techniques, your clients and prospects will see you at the highest level – as a Consultative Broker. That is the goal of TCOR. To give you the leverage you need to provide real client value and to be perceived as the finest gatekeeper of resources in your marketplace.

The firms and producers that are adopting Consultative Brokerage and TCOR now have a common platform of benefits and property/casualty cross sales. In the past, there were two different types of sales. The benefits sale was consultative driven, while the property/casualty sale was carrier/commodity driven. By adopting the Consultative Brokerage model these organizations are able to meld their culture, sales style, and value proposition. After all, while our disciplines may be different, the goal is the same – to create a revenue stream based on quality clients.

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.