We’ve written on the benefits of risk management and on its application by brokers in blog entries like Using Risk Management to Win in the Mid-Market and An Ounce of Prevention: Does Risk Management Really Work? So expanding on that, today The ClearRisk Blog brings you some of the ways that risk management can increase brokerage revenue.
- Attract New Clients: Providing something of great worth doesn’t go unnoticed. Including risk management advice and support as a value-added service for clients can make a brokerage stand out in the eyes of a potential customer.
- Better Terms in the Insurance Market: In working with your clients to identify risks and to ensure they carry the right coverages, you help your clients to become ‘best-in-class risks’. Having clients who are informed and knowledgeable about the risks that face their operations will bring them better preparedness as well as access to better rates and terms in the market. Organizations that work towards risk improvement are perceived more favorably by insurers.
- A Better Book of Business: Clients who take an active role in managing their risks have better loss ratios over the long term. With better client loss ratios, brokerages can earn higher CPC.
- Stronger Relationships with Clients: Providing risk management guidance to clients not only provides value, but it gives you the opportunity to meet and work with clients on positive, relationship-building terms. Working with them to identify potential risk areas and gaps in their coverages helps you to be seen as a provider of solutions; someone who is looking out for their best interest and who shares the same goals. This can help take your interactions with your clients to a whole new level, where long term and beneficial partnerships are built, maintained and valued. Think about your longest and best relationships with clients. What if you could replicate that trust and loyalty in all of your client relationships?
These are just four of the many benefits that the provision of risk management services brings to brokerages and brokers. On Thursday, April 22nd, 2010 at 2:00pm EDT, I will be conducting a free webinar on the Top Ten Ways to Use Risk Management to Increase Brokerage Revenue.
UPDATE: You can view a recording of the live webinar here: Risk Management for Insurance Brokers