We have taken a deeper look at what it takes to be an insurance agent and it sure isn’t an easy task. An insurance agent is, most of the time, commission-based and self-employed. This means that the total success of his or her business is in his or her hands alone. That being said, now imagine one insurance agent serving 100 clients. In the theory of demand, it means 100 clients could potentially require the insurance agent’s time at any one point in time. Thankfully, in reality we think this insurance agent will not be receiving 100 calls at the same time, right? Or not? Say in a time of global crisis, wouldn’t all clients be concerned about their investments or health coverage at the same time?
How does one insurance agent handle his portfolio of clients efficiently without losing possible new business opportunities (opportunity costs in failure to generate revenue)? On the other hand, how does the same agent be successful with new business opportunities while maintaining the service level to maintain the sustainability of his existing client base?
Let us now take a look at the 4 negative impacts inefficiencies have on your insurance business.
1. Inefficiency Wastes Time
Every minute squandered is lost forever, never to return. All insurance agents promise clients a high level of service when they sell them a product. Let us not be confused, the insurance business is not a product but instead a service business. Time spent waiting, whether for a claim process to finish or insurance advise, is time lost which will affect your customer’s satisfaction. Any time spent to check something for an existing client may result in a lost of opportunity for your new business. When it comes to efficiency, time is not just measured in minutes and hours, but also potential output.
2. Inefficiency Reduces Quality
Subpar business processes will result in errors eventually, resulting in customers not getting the best for their buck. You are valued for the quality of their advise. If you are not able to review their client’s portfolio effectively with all the necessary insights, how are you then able to produce quality advise? Correcting inefficiencies across processes can have a major impact on success rates in your insurance business.
3. Inefficiency Damages Morale
Insurance agents typically enjoy meeting up with people, going through the sales process and closing deals. What they dread the most are administration tasks. Routine and mundane tasks can be frustrating. To performed these tasks four or even eight hours a day, you being human will not be particularly apt to go the extra mile or perhaps even to smile.
4. Inefficiency Costs Money
It is key to understand that inefficiency comes at a cost, and this cost is monetary. Inefficiencies cost many organizations as much as 20 to 30 percent of their revenue each year. Imagine what you could do it with 20 percent more revenue this year! It is true that, sometimes, to improve efficiency, it comes at a premium. But this is perfectly all right when the price that you pay results in a greater return on investment.
Partner with us!
You can do something about it! If not for yourself, for your clients. This is why at Insuree, we partner with insurance agents to elevate their business processes to improve their customers’ satisfaction to bring back the value of insurance into society.