The Consultative Broker™ Briefing
Volume VII, Number 8
A Free Publication of C.R. Ekern & Company
888.670.1177
www.crekern.com
Copyright, C. R. Ekern & Company, 2007

The Million-Dollar Question

It’s time to switch our Consultative Broker hats.  The marketplace is demanding an entirely different approach from that of the last 48 months.  Guess what?  It is back to a selling business again!  Whoopee!!!!

Let’s stop right here for a minute.  It is important that we all recognize that Consultative Brokerage was developed in the soft market of the mid 90’s.  It was born from the need of quality organizations and their producers to differentiate themselves outside the commodity of price and coverage.  Remember the bad old days?  When your books of business were eroding rapidly and everyone out there was at a cheaper price than last year?  Wow . . .what a difficult time it was.

So, now we are headed back into the softening marketplace.  You know the drill.  Underwriters are giving you prices and finishing the renewal conversation with those famous words, “If you need more, let me know.”  Field reps are coming back out with lists of accounts they would like to “take a look at”.  Every week you are hearing about a new carrier or product that is coming back into the market.

Here is the Million-Dollar Question.  It is the one that will separate the successful firms and producers from the pack.  It is the key question you must ask yourself right now.  What will be our production style for the coming years?  In short, will you follow the marketplace downward or practice Consultative Brokerage? The answer will determine your fate.  It will make the difference between prospering or sinking back into the quagmire of price.

While you ponder this huge question, these are other major questions that will automatically be answered:

1. Quality or Quantity?   In the event you chose the Consultative Broker production style and attract larger clients, you will serve fewer firms.  However, your profitability will go through the roof.

2.  Who will call the shots?  In the Consultative Brokerage Methodology, you and your organization have value.  You can quantify it, describe it, and deliver it.  Your position is highly elevated in the transaction.  You will not be at the mercy of the marketplace.

3.  When is a suspect a prospect?  Consultative Brokers know how to create opportunity without reliance on an expiration date.  They are capable of showing a buyer their Total Cost of Risk and obtaining broker of record letters at any time during the policy period.

4.  Am I smart and strong enough to resist the pricing temptations?  As the marketplace softens, there will be many of your competitors that will lead with price.  They will go with price because they are unable to match your expertise and resource capabilities.  These brokers will attempt to lure you into a price competition because it is the only way they know how to compete.

5. What business am I in?  Consultative Brokers understand that they are not insurance salesmen.  Selling insurance is not a business - it is a function.  They see themselves as businesspeople that help clients reduce costs and improve profits through the application of resources.  It allows them to say . . .”Oh by the way, we provide insurance too!”

It is my advice that you spend some time on the Million-Dollar Question, before the softening marketplace erodes much further.  Your answer will dictate a business and sales plan that will see you through for many years to come.  In the event you chose the Consultative Brokerage model, your future will be bright.  It will take a little more effort, but the results will be worth it.  We will be right here, helping you along.

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