There are two sides to every coin and the same goes for achieving success in the insurance industry. Most have us have been taught that in order to succeed in business, we need to learn and do what successful people do. On the other hand, it is also as important to learn why others are unsuccessful and to avoid doing the same. With many flocking to be insurance agents in search of financial success, flashy cars and branded watches, the insurance industry is one that holds a high turnover rate. Let us take a look at the top 3 reasons why insurance agents quit.
1. Unrealistic Expectations.
The first reason why insurance agents fail is because of unrealistic expectations - expecting too much too soon. Newly recruited agents are always presented with the ultimate dream with overly simplified steps to attain them. They then immediately jump into action to try to meet as many people as possible to chock up their sales without truly understanding the dynamics of it.
Unrealistic expectations are basically a result of poor planning where the agent did not perform their due diligence when developing their business plan, or worst still, to not have a business plan at all. This is the reason why so many agents are not prepared to put in the hard work required to make their business succeed. In addition, agents that strike out on their own without sufficient capital in the bank stand to lose hope early on, and once that happens, it is almost always downhill from there.
2. Commission-Focused. Not Service-Focused.
The second reason why insurance agents fail is because of the over weighted focus on commission rather than service. I am sure many of us have experienced restaurants with lousy service and we end up not going back again. No doubt, commissions are important, but renewals are way more important for a sustainable business. The only effective way to ensure client’s renewal business is to provide an outstanding customer service.
An outstanding customer service will always guarantee success as it sets an agent apart from the many others around. Running a successful business is not just determined by what the agent wants but what their customers want. Putting the needs of their clients before the needs of themselves sets them in the direction of a highly successful business.
3. Lack of Support. Specifically Technology.
In most cases insurance agents fail due to the lack of a support system for their business. This failure to have access to a support system is more of the fault of the agent rather than the person or organization who recruited them. Time and time again, new agents often think that the necessary tools for their business are product brochures, a laptop, and their mobile device. It is unrealistic to expect to sell insurance products just because you have an insurance license.
In a competitive industry such as insurance, agents have to gain product knowledge, market knowledge, and of course, sales skills. Most of these attributes can be obtained through mentorship which is a crucial support system especially for new agents. A mentor who is an experienced practitioner in the industry can be a great help for you to avoid making more mistakes than necessary to be successful. However, customer expectation is changing fast due to the presence of technology. Agents therefore have to be equipped with the right support tools to stay competitive and deliver quality customer service to their clients.
The Bottom Line
New agents need to enter the market with reasonable expectations, a support system, and put the needs of their clients before their own. This will eventually lead to a rewarding and profitable business. We see that the insurance agents play an essential and noble role in the industry to help society succeed financially and plan for uncertain times. It is an industry where personal touch is still and will be key for success but agents do have it tough for them. That is why we founded Insuree for insurance agents who are serious about their business to deliver a high tech and high touch experience for their clients.
What Agency Leaders Need to Know
In every organization, providing employees with the necessary technology is incredibly important, both for their self-worth in their position and for your agency’s overall goals. When your employees see you place importance on their everyday tasks by equipping them with the tools needed, they will feel valued and will work harder.
Start equipping your agents with tools that make them feel productive and in-control of their work. Not only will it help to keep them on task, but they will feel a sense of ownership for their data, in-control of their role and gain a sense of value from it.
In order to hire, and more importantly keep your agents happy and engaged at your agency, you need to constantly help them see their value and provide them with the tools they need to succeed. Find out how Insuree is able to create a better future for your agents and the insurance industry.