David Gresko, based in Houston, Texas, currently serves as Insurance Risk Manager at Marathon Oil Corporation. He brings extensive experience from previous positions at Strategic Risk Management Services, Noble Energy and Dynegy. David holds an MBA in International Finance from Southern Methodist University's Cox School of Business (1984–1987).
Through this article, David is highlighting the importance of service and strategy in the relationship between risk managers and their brokers. He emphasizes that risk managers want to feel valued and sought after and that brokers should provide timely and accurate communication, as well as innovative and strategic solutions.
I’ve been asked several times over the years why risk managers move their business from one broker to another. I’ve responded, “Two words—service and strategy." Whether you are a big fish in a small pond or a small fish in a big pond, you always want to feel like you are the only fish in the pond. That may be a little ambitious, but it is true. Brokers provide a valued and sought-after service, but they provide that service to a
client. When a client requires information or guidance, it’s imperative that that need is addressed ASAP.
“When the broker team comes back with a recommendation to renew as expiring,' that tells me that I wasn’t worth the effort to do the analysis.”
Service
I get approached frequently by brokers looking to meet about securing a piece of my business. I never decline these invitations because you never know when the services of that broker may be required. “Service” is a quality that I monitor, and “service” can apply to many different aspects of the client/broker relationship. It impacts the renewal process, the claims process, and the invoicing process. “Service” can also be used to describe the communication between client and broker. During the renewal process, accurate and timely communication is imperative. If I have a question or require information and I cannot reach the client executive immediately, my expectation is that the client executive or an alternate will respond to me before the end of the workday. They may not have the answer I need, but they do need to let me know when I can expect it. I have been in situations where I don’t hear back for several days. I know that everyone can get busy, but they shouldn’t be too busy to acknowledge that I reached out. Communication is key. I notice when I don’t get updated on the marketing effort. I notice when claim service goes into a black hole. I notice when invoices repeatedly contain errors or binders and policies are not received in a timely manner. If I must point out errors or ask where my documentation is, I know that service is a problem.
Strategy
Since the brokers are experts on market trends and program structure, I rely on them to provide me with current, useful intelligence. When we sit down to strategize program renewals, I expect them to come to me with information and ideas. I tell my brokers that the three words I don’t want to hear them say are “renew as expiring." What we did last year will not necessarily be what we should do this year. I tell them to start with a blank sheet and outline what we do, what we can do, what we should consider doing, and what we will not be able to do going forward. I never hold it against the broker if they come back with a restructured program option. That’s what I pay them for. When the broker team comes back with a recommendation to 'renew as expiring,' that tells me that it wasn’t worth the effort to do the analysis.
So, if you want to keep my business, focus on service and strategy. Whether my company is the big fish or the little fish, make me feel like I’m the only fish.
