Common Mistakes Made by Insurance Agents

Scott Jones
Scott Jones
insurance agents

Insurance agents make mistakes, it’s inevitable. The most important thing is to have a plan of action instead of overlooking them, as the smallest mistake could be affecting your bottom line. If you start getting into bad habits, you must be aware of how to improve since the success of your business depends on it. It is helpful to forgive yourself but strive to learn from your mistakes.

Here are the primary errors that insurance agents make.

Jumping into the Sale

Insurance agents should always begin sales conversations with prospects with some ice breakers. They know it’s a sales conversation, but if you can communicate effectively and ask the right questions, you might build a rapport and be successful. You might be able to build trust by discovering shared hobbies, learning about their children, or where they grew up. These things can strengthen the initial connection and improve the sale. You may take the wrong approach or accidentally say something that is not entirely accurate for the products and services. It is impossible to know for certain that you will prevent slip-ups, so CA E&O insurance is so important.

Neglecting the Follow-Up

It is helpful to be prompt on a lead follow-up. You can even use emails to reach out, introduce yourself and share your contact info. Establish a robust follow-up system to help you keep up with them. Utilizing a client management system is recommended.

Always stay true to words. For instance, if you tell a client you will get back to them on Monday morning, be sure to follow through. If you do not keep up on even the simplest of things, clients will begin to doubt other things you’ve said, and it could damage your reputation.

You must keep in touch with your current clients. It may be in your best interest to set up calendar reminders for policy renewal windows, holidays, and birthdays so clients feel valued and you can keep them updated. You don’t want the next time you contact them to be renewing their coverage.

Over Talking

It is great if you are knowledgeable about your product details, but you want to be cautious of oversharing when it is not needed, as this might scare some prospects away.  Sometimes it is better to do more listening and less talking. Even if it seems prospects are leading the sales discussion, you’re still in control. You can jump in after describing their needs, priorities, and concerns and then allowing them to answer. You want them to trust you and to feel validated. It will also help you zone in on solutions for them if their priorities are defined. Don’t solely rely on or force a pitch to close the sale. When you have gained their trust to lead them in the right direction with a good product and service, that is how you can close your sale.

Not Asking the Right Questions

Listening can only go so far if you don’t know how to ask the right questions to determine the prospect’s sales objections and priorities. Ask open-ended questions beginning with “who”, “what”, “why”, “when”, “where”, and “how”. You may also need to interject to clarify, understand better, emphasize or redirect the conversation if it starts getting off-topic. This can be difficult but is a crucial skill to improve sales and client satisfaction.

Wasting Time on the Wrong People

Naturally, you will come across many people who are curious about what’s available, even with no intention to order. You will want to avoid spending too much time and energy on prospects who aren’t ready to order. This can be done by qualifying your prospects early in the sales conversation with buy-in on their part. A potential customer will want to be informed how they can secure coverage or solve a problem. If they are not seeking to solve any issues, they may not be ready to order. Remember, rejection is part of the job.

Being too Aggressive

Keep in mind that if your sales approach is too aggressive, that could negatively affect the bottom line. Continue to allow the prospect to do most of the talking and ask questions about objections. It is always best for insurance agents to tailor their message based on what influences the individual customer, focus on what they value, and feel acknowledged. Adjust your tone and approach accordingly to match what the prospect is expressing. Building rapport and common ground this way will make it much more likely that they will want to proceed with the process.

Stressing on Price

It may seem that price is the primary concern for prospects as it is often the first thing you will be asked. However, clarifying that is necessary, but that doesn’t mean you have to be pulled down to your bottom price. Stick to your process and goals. Open transparent communication with prospects regarding their budget and their insurance needs is vital to make better suggestions for them. Don’t automatically assume they can not afford your products and services. Sometimes their problem at hand is worth the cost of the solution, but they might need to weigh their options and understand the products and services better. You won’t come off as up-selling if you have already built your rapport and can offer tailored solutions.

Not Keeping Up with Business

How are you prepared to sustain your business? It is smart always to strive to improve since the market is constantly evolving. It may be helpful to diversify your product offerings and take advantage of opportunities to meet new clients’ needs. If you have loyal customers, you will be able to cross-sell. If you’re not an independent agent, you may want to network with other professionals and take turns trading referrals when you cannot keep up with demand. Leverage every chance you get to sharpen and maintain your skills. There are plenty of workshops and conferences available to freshen up on industry and product knowledge. This is also a great way to meet colleagues and learn new tricks. Even the most seasoned insurance agents can learn about new technologies that could help understand certain markets or improve productivity or approach.

About IPRO Agency Insurance Services

IPRO Agency Insurance Services is a specialty insurance brokerage with the expertise to protect your firm, assets and to help you retain clients.  Our services offer all types of professionals the protection they need so they can stay committed to their work with ease.  We are connected with leading insurers to bring you the best coverage for your unique needs and areas of risk. Get in touch with us at 888- 673-8039 so we can begin to safeguard your success.