In the second of his two-part series, Rob Ekern tells you how to get maximum mileage out of the Stewardship reports. Which clients should you use them on? How many months before renewal should you conduct them? You’ll get all the answers in this valuable document. (Part 1 HERE)
Stewardship reports are critical to the retention and growth of large accounts. They’re the only technique you can use to fully demonstrate your expertise, capabilities, and resources to a client. In discussing Stewardship reports with brokers, I’m often asked these questions:
Which accounts should receive them? Conduct Stewardship reports on your absolute largest accounts. I call these 'franchise accounts.' Most producers have a small number of accounts that make up a very large portion of their books. These are the ones with the highest level of expectations and are the top targets of other brokers.
What information do I need? In addition to the traditional insurance documents and loss data, include financial statements and knowledge of the client’s strategic plans. Your Stewardship report must focus on how your firm has and will impact the client’s balance sheet and add value in the future.
To make the most effective use of the report:
- Do the report at least four months before renewal so that you can focus on client issues rather than renewal pricing. If you delay, other brokers might target the account. Once that happens, you’ll be spending all your time protecting your best interests, not necessarily the client’s.
- Use the report to build relationships. In many cases, these meetings will include client team members that you haven’t met in the past.
- Take advantage of the report to discuss marketplace changes with the client and begin a renewal strategy on a partnership basis.
- Use the report to outline your past representation of the client — not to make a sales presentation.
- Present the report in a formal business setting, not at a crowded restaurant.
- Be prepared to ask and answer tough questions about the marketplace and your strategy to protect the client’s best interests. If these questions don’t arise, bring them up yourself!
What if my client isn’t interested in a Stewardship report, or won’t give us validation during our presentation? In this case, you’re probably in deep trouble and weeks away from being fired! You must look your client in the eye and ask the toughest question you’ll ever have to ask: 'Is there a problem that we should discuss?' Be prepared for the answer and speak candidly. This is the best time for this discussion. You can fix the problems now — not after the Broker of Record Letter goes to someone else!