Client Management: 7 reasons why insurance brokers or agents fail

October 5, 2017

The insurance industry offers huge career opportunities for those who are smart enough to seize them. And for insurance agents and brokers, the potential for success is particularly huge.

Are you interested in improving your client/agent relationship?               

Are you looking to increase your chances of success?

Then we are here to give you some valuable tips on how to manage your customers and avoid the mistakes that cause insurance agents or brokers to fail.

Here are 10 common reasons:

  1. Failure to work hard

Whether a new insurance agent or broker will be successful in the long term or not depends on how hardworking they are. New agents need to be enthusiastic, extremely hardworking, and able to communicate effectively. In order to succeed it’s important to improve their effective communication and marketing skills.

  1. Failure to abreast with trends

Many new insurance agents don’t keep abreast of current trends in their market and industry. Successful agents and brokers, on the other hand, dedicate some time and effort into studying market and industry trends. This helps them make strategic decisions that can enhance their chances of success. In addition, they should always keep a tab on the competition to avoid being left behind.

  1. Failure to adopt the use of new technology

Technology keeps changing the face of business. For example, the internet has changed the way many insurance professionals find prospects and market their businesses. Agents and brokers who are not using the internet and other current technologies to their advantage are not likely to succeed. More and more insurance brokers and agents are using effective online marketing strategies such as blogging, paid advertisements, search engine optimization, affiliate marketing, and so on to attract more customers. One of the reasons many agents and brokers fail is that they don’t incorporate new technology into their business practices.

  1. Failure to network

Many insurance agents and brokers have failed because they downplayed networking. And when they come across built networks, they don’t take advantage of them. Successful agents form strong networks with other businesses that cater to their potential customers.  This will open the door to referrals. Even past and current customers can be networked with and encouraged to market the services of an insurance agent or broker through word-of-mouth. This alone can reach far distances and generate huge sales and profits.

  1. Lack of quality training and education

Another reason why many new insurance agents and brokers fail is they don’t have the quality training and education required to weather the challenges of the insurance market. They lack first-hand information of the products they are selling, and therefore cannot educate clients on the needs for specific insurance products. This makes it easier to fail at the task in hand, because they are not able to convince their clients of what they are selling.

  1. Wrong focus

The primary focus of every business owners must be to offer value, not to make money. Many new insurance agents and brokers get this simple fact wrong, and they fail. Anyone going into the insurance business with the sole aim of making money is bound to fail.

  1. Not learning from mistakes

Mistakes are meant to be made so that lessons can be learned from them. Repeating them carelessly is a recipe for failure. And it’s the reason why many insurance agents and brokers fail.