The Consultative Broker™ Briefing
Volume VI, Number 9
A Free Publication of C.R. Ekern & Company
888.670.1177
www.crekern.com
Copyright, C. R. Ekern & Company, 2007

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Oh, By The Way...

Ladies and gentlemen, Consultative Brokers across North America, now hear this:  There are only two or three insurance carriers for any given large account!  Yet, many of us continue to work the old fashioned way of market selection.  Frankly, it just doesn’t work anymore.  It can’t.  There ain’t enough to go around.

Given this absolute truth, how are astute brokers planning on growing their books of business over the course of the next several years?  By being perceived as something other than simply insurance providers.  “NOW LOOK,” you say.  “I have worked hard to become a skilled craftsman of the insurance trade.  I have a number of professional designations and am a highly skilled technician.  Who are you to tell me that there is more to it than that!”

When I was a working broker, I also had the designations.  I did consider myself skilled in the technical aspect of the insurance products.  But here was my problem - everyone else did too!  In fact, the buyers of large accounts just assumed that we were all technically proficient.  If not, we were not invited to sit at the table.

Here is the problem that we will face going forward into the next marketplace retreat: There are only a few carriers left that can do the deal, but there are many brokers that are technically qualified.  So, what’s the answer?  You must be able to demonstrate how you can impact a buyer’s costs in many other ways than simply the insurance policies.

Here is what Consultative Brokers know:

1. They are not for everyone.  They know that their time is valuable and they can’t waste it on a prospect that doesn’t get the message.  In these cases they simply withdraw and wait until the prospect “comes to the mountain.”
   

2. They only talk about costs.  They understand that there is a huge difference between price and cost.  By focusing only on cost, they are able stay with a subject they can control.
   

3. They do not depend entirely on the carriers.  They recognize that, unfortunately, there are too few carriers that understand the subject of TCOR (Total Cost of Risk.)  Because of this, they can’t depend on most carriers to establish a Value Proposition (there are some exceptions with carriers that have adopted our TCOR model.)
   

4. They are patient with buyers.  They accept the fact that some of their techniques are novel to many buyers.  Actually, in most cases, the buyers themselves have never been taught the difference between price and cost.  They are willing to educate a buyer about their true costs.
   

5. They stay the course.  They understand that Broker Control depends upon their ability to resist the temptation of falling back into the marketplace selection trap.  They do not allow themselves to go backwards!

Successful firms and brokers are learning that Consultative Brokerage gives them power.  This power manifests itself in the ability to stay above the fray.  They can look a buyer in the eye and know that they have something more to offer.   It gives them the confidence to work only on a Broker of Record basis.  Once they have demonstrated their Value Proposition, they can say:  “And, oh, by the way, we provide insurance too.”

Thanks to all of our readers who have inquired about the C.R. Ekern & Company Private Client and Consultative Brokerage University Program.  We are very grateful to those of you who are committed to improving your Value Proposition.  If you keep reading, we will keep writing.

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