With the international health crisis unfolding, uncertainty is in the air.
Of course, the well-being of loved ones is front and center in our hearts and minds, but it’s also important to consider what happens next for those of you who intend to stay in the insurance production business. The ground is shifting rapidly.
- According to financial experts, the recession is here and will get worse for organizations before it gets better. All your commercial clients therefore will be scrambling to assess their cost structure and making difficult decisions to keep the lights on in the coming months.
- The financial markets are providing record low returns. As a result, the insurance carriers will have difficulty in subsidizing underwriting with much lower (if any) investment returns.
We are facing the perfect storm: Falling revenues for your clients and rising insurance rates from the carriers. So, as an insurance broker, how do you weather the storm?
Some of you will try the “old” approach to save your bacon. You will talk to your clients about ways to reduce their risk financing rate. Your benefits broker friends will warn you that comparing “increase against the trend” usually produces a negative discussion with buyers. It’s just more bad news. Your clients want solutions, not more problems.
Here is the better approach for those who want to stay relevant:
- Demonstrate what your financial impact has been for the past several years. Show the buyer how you helped add to the capital that they are going to need.
- Project what you will do going forward to help them properly budget and measure the outcomes of your resources. Translate EVERYTHING into their metrics and KPI’s.
- Keep all your data current and update your results in real-time. Don’t consider this discussion to be a once-a-year conversation. You need to be ready to demonstrate your value proposition at a moment’s notice.
Of course, doing this requires the tools, data, and critical thinking required to be a financial advisor, but isn’t that what your clients need the most right now?
The Analytic Brokerage Platform™, for example, provides the data and deliverables required to become part of the solution. Our member firms can quickly assess a buyer’s financial impact, using the latest models for P/C and Group Benefits. They can also show a buyer in specific terms how they have improved their operational and financial goals.
If you can’t (or won’t) do that, then you’ll likely only be able to discuss a series of negative outcomes and forecasts. With all the noise and warranted pessimism in the markets right now, why not be the bearer of better news? Help your clients weather the storm.
You must provide solutions and show them the value of your work and how you have helped improve their outcomes.
All the best to Analytic Brokers,
The Analytic Brokerage TeamMake more money on Larger accounts - Let's get started
About the Analytic Brokerage™ Platform
Leading brokerages and producers across North America choose the Analytic Brokerage Platform to maximize their large account profits, revenues, and growth.
Utilizing the latest KPI’s, client metrics, and business intelligence, the Analytic Brokerage Platform is the only system in existence that helps brokers:
- Quantify a buyer’s financial leakage and true Total Cost of Risk
- Deliver consistent and meaningful reports
- Attract and retain larger accounts
The Analytic Brokerage Platform is currently embedded inside many of North America’s leading brokerages who control over $2,000,000,000 of annual revenues.