RISKVUE ARCHIVE | FEATURE STORIES

Cutting Through Techno Yak-Yak

By Gary W. Griffin, ARM

We had the opportunity recently to interview several young insurance professionals for a consultant trainee position. The chosen applicant would be working under the tutelage of a senior consultant. All of the applicants we spent time with had been working for large insurance brokerage firms for two or more years and were engaged in various formal courses of study relating to insurance and risk management.

What we observed was that in each case the applicant had assimilated a kind of insurance techno-babble that became part of their verbal repertoire. When pressed for an explanation of what it was they were trying to express, most either couldn’t give a lucid response or did a poor job of faking it. Words like outsourcing, benchmarking, partnering and other clichés were used too often or inappropriately. Often such terms were strung together in such a way that the message became incomprehensible.

Having been involved with many broker selection interviews and communications with brokers of all sorts, we know that jargon and hype often runs deep. To our dismay, though, a whole new generation of insurance professionals appear to be trained in the fine art of techno yak-yak.

Words such as outsourcing, benchmarking and best practices often are just fancy names for products, services or management techniques that have been around for many years. Used too frequently such terms can be the sign of a crutch, signaling that the person really has nothing new to say. We conducted a broker selection process recently where the broker kept referring to crafting an insurance program to the unique needs of the client. We thought it was a clever usage of the word at the time, but after more than a dozen references to crafting it became cliché. And in the end, we weren’t sure whether the broker was talking about making baskets or structuring a self-insurance program. The point is that the broker only talked about what he was going to do and failed to communicate how he would accomplish it. While the broker had good ideas and appeared to be capable of getting the job done, the broker failed to convey the message and lost the opportunity to be considered for selection.

What You Can Do

Demand Straight Talk

Most risk managers would benefit by having their brokers avoid the use of buzzwords and colloquialisms and instead explain in simple terms what they mean. As a risk manager or corporate insurance buyer, you might want to discuss these concerns with your broker. Simply explain that you prefer clear and straightforward communication, and ask the broker to avoid empty talk and nonsense. They’ll get the message. If buzzwords and fancy terms are still used, brokers should make sure their meaning is defined. Even the term risk management can mean different things depending on who you talk to.

Establish An Agenda

Uncontrolled, most broker presentations and meetings can end up being far too long and boring. The worst are those that are based upon boilerplate and rehearsed lines. Risk managers would be wise to establish an agenda for the broker specifically outlining what is to be accomplished. Presentations and meetings also should be subject to a strict time limit. Many brokers now -employ sophisticated multimedia presentation equipment. That’s fine and, when handled properly, such equipment can enhance the communication process. But be alert for substance, not sizzle.

Establish Bid Specifications

A formal selection process including the development of bid specifications are common when conducting a broker selection. Such processes and specifications, however, need not be overly complicated. Determining in advance how candidates will be judged, even if informally, will help keep presentations on course and free from superfluous content. Having the broker present its proposal within a specified time frame also tests the broker’s ability to carry out your instructions. If you will be interviewing several -brokers, this is the only way to go.

Control Your Meetings

Oral presentations are fertile ground for hype and -jargon. Therefore, if the presentation gets over your head or you don’t understand something the broker has presented, don’t be afraid to interrupt the presenters and ask for an explanation. It’s our experience that the simplest questions are often the most difficult to get -answered. Keep pressing for answers to your questions. If you don’t get satisfaction at this stage of the game, chances are good the candidate would be equally disappointing after being selected as your broker. Where claims of savings or projected costs are concerned, ask to see the calculations, projections or methodology used. Don’t accept unsubstantiated claims of savings or costs. You’ll only be disappointed later on.

Service Team Overload

Many brokers make the mistake of assembling large entourages of experts from every corner of the corporate brain trust and then marching them through the prospect’s office. The problem is that these people often have little or no background regarding the insured’s operations and, in many instances, will never contribute to servicing the account. One of our clients reported having more than a dozen professionals of every description paraded through their office before finally putting the kibosh on it. Unless you specifically ask to meet a company resource, limit interviews to those persons you will be working with. All too often the people who will be interacting with the insured on a day-to-day basis, i.e., the account managers and assistants, are left back at the office. But usually it’s those working in the trenches that make or break the broker/client relationship. Be aware too that many brokerages, especially some of the more successful regional brokers, have distinct lines drawn between their sales force and their technical people. In other words, the salespeople sell and the technicians service. In such cases the salesman or producer will have little actual say in the handling of the account. So if you are accustomed to dealing with the person that sold you the account, special arrangements or lines of authority may need to be established.

Conclusion

Broker presentations and communications are often obfuscated by the use of buzzwords and cliché terminology. As the purchaser of services you have the right to demand a minimum level of communication free from rhetoric. While we have given a few tips on navigating your way clear of techno yak-yak, the most effective way of ensuring you and your broker are communicating effectively is by crafting a seamless partnering arrangement based on the fostering of common internet-based goals easily benchmarked against established best practices. Oops! 

EDITOR’S NOTE

Of course brokers are not the only party guilty of technobabble. Risk managers and consultants have their own equally convoluted vocabulary that often borders on the nonsensical.

riskVue | The webzine for risk management professionals
September 2000