5 Reasons Why Insurance Agents Fail (& How Not To!)

There are many reasons why insurance sales agents may not be as successful as they originally set out to be.

Being “successful” in this industry could be somewhat subjective, but however you measure it, setbacks are an unfortunate reality you may encounter. What’s important is, when you face them, don’t give up!

Learn from other agents’ past mistakes and create business goals to keep moving forward on your road to success.

They Don’t Forge Relationships with Clients

A successful insurance agent is most likely a people person. They make clients feel heard and their opinions valued. The insurance industry involves more than just finding a plan for your clients and it being a once and done deal. An agent who has this mindset could possibly be on the road to failure if they don’t put in the necessary effort to develop lasting relationships with clients.

Studies have shown that having your clients come back year after year is better for your business than continually finding new clients. How do you keep your clients coming back for more? Be an agent who cares, who listens effectively, and who goes the extra mile to meet clients’ needs.

Community involvement also shows your clients how you care at the local level. Participate in local charity events that you’re interested in. When clients see how you give back to your community, they see how much you can help them, too!

Learn ways to improve your client retention rates in our eBook — The Complete Guide to Client Loyalty and Retention!

They Don’t Study for Their Certifications

Even if you think you know all there is to know about insurance, there’s always something new to learn. That’s why Medicare agents must retake their Medicare Fraud, Waste, and Abuse (FWA) and carrier certifications every year. Passing certifications like or NABIP is very important.

If you fail, you won’t be able to sell insurance for that year and risk losing renewals. You must be willing to put in the effort it takes to succeed in the industry. Those who don’t won’t prosper.

As for AHIP tips and tricks, we suggest using modules, review quizzes, and practice tests to help you prepare for any certification exams. Note which questions you get wrong so you can go back and work out the correct answer. Also, take detailed notes to help you retain the information.

If you pass the AHIP, or whichever certification, on your first go, good job! That’s one less thing to worry about, so you can continue growing your insurance business.

They Don’t Adapt

In today’s day and age, especially in the insurance industry, it pays to be adaptable. If you aren’t, you’ll find yourself lagging behind the competition, so make sure you keep up! Whether it’s adapting to technology or a new way of doing business, you have to make sure you’re adjusting.

Some helpful technologies include CRM tools like our own IntegrityCONNECT! If you’re a registered agent, you can use technology like this for free today! You can even use technology like this to establish a sustainable business strategy. A good support system for your business is crucial to seeing it thrive!

Another interesting piece of technology we recommend you use is Ask Integrity, our AI system that acts like your own personal digital assistant! AI is becoming an increasingly popular tool for insurance agents to sreamline their businesses. Try out Ask Integrity by becoming a registered agent for free!

We saw the need to adapt to a “new normal” during the COVID-19 pandemic. It’s now increasingly important to make your clients feel safe. You can take the necessary precautions like having meetings digitally instead of in person, for example. Remaining stagnant is never the key to success.

Remaining stagnant is never the key to success.

It could also be as simple as adapting to your client base. Maybe it’s being more available or having more plan options in your portfolio. It could even be adjusting to the technology that your clients are most comfortable using. Learn what your clients need from you so you can show them your support.

They Aren’t Effective Communicators

Becoming an insurance agent who succeeds only occurs is if they are an effective communicator — in person and digitally (phone, email, voicemails, etc.). As an insurance agent, you’re going to be dealing with people a lot.

Because of that, having the right marketing strategies is key. You need to make sure you know the best ways to communicate with the people you’re working with. It may also vary from client to client.

A social media marketing plan is a good place to start! Check out our eBook, Social Media Marketing for Insurance Agents to see what channels and strategies are right for you!

For example, one client may dislike when you email them and much prefer a phone call. On the other hand, another may not like talking on the phone and strongly prefer email. It’s up to you to listen attentively and communicate how your client prefers. On your business cards, make sure they give every available channel for clients to reach you!

You need to make sure you know the best ways to communicate with the people you’re working with, and it may vary from client to client.

It’s just as important to make sure your clients feel heard. They don’t want to have to repeat themselves multiple times about what they’re looking for in plan.

If the coverage details are hard to comprehend, then they don’t want to feel bad or embarrassed. It’s also important to avoid “elderspeak,” with your clients who are 65 and over.

Patience, understanding, and kindness can go a long way when working with beneficiaries. Agents who fail won’t take the time to listen to their clients,or focus on their own agenda, like earning commissions. Don’t be this agent! Take note of what your clients want and what they need to hear from you to feel confident in their benefits and agent.

They Aren’t Familiar with Their Target Market

Last but certainly not least, it’s possible insurance agents may hit some roadblocks if they’re not familiar with their target market. The old saying “knowledge is power” rings true for insurance agents. It’s imperative you know the demographic you’re selling to so you know which types of plans should be in your portfolio.

Are you selling to an affluent community? Are you focusing on plans with hospitals nearby in the network? These are all things to consider.

If you’re unsure, do some online research and reach out to a field marketing organization (FMO) like Ritter Insurance Marketing to make sure you’re on the right track. If you don’t already have a free profile with our site, you can sync up your NPN and use our free services today!

Hopefully this advice will give you the push you need to stay on the path to success. Don’t forget your FMO is always in your corner to help you and support you on your journey! Join Ritter today for free!