Why Trust Is an Insurance Agent’s Most Important Non-Renewable Resource

Readers of the Ritter blog understand that client retention is great for your business, but you may be wondering what you can do to keep your clients coming back. Let’s discuss why trust between insurance agents and clients is an invaluable (and non-renewable!) resource.

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The Merriam-Webster dictionary defines trust as “assured reliance on the character, ability, strength, or truth of someone or something.” Your clients likely want to work with someone who’s reliable, honest, and authentic. You may know from experience that once trust is broken, it can be very challenging to regain. The same rules apply when it comes to the relationships between insurance agents and clients — making trust a non-renewable asset. Keep reading to discover how you can gain and keep your clients’ trust!

“Once trust is broken, it can be very challenging to regain. The same rules apply when it comes to the relationships between insurance agents and clients — making trust a non-renewable asset.”

How Trust Is Beneficial in the Insurance Business

Trust is vital to creating a lasting relationship — and lasting relationships are a pivotal part of client retention. Earning the trust of your insurance client can go a long way, and there’s value for all parties involved. It’s possible they’re already a little skeptical of insurance agents in general, so building trust is imperative to you being successful and your clients being satisfied.

Clients coming back time and time again leads to renewal commissions for you, so it’s in your best interest for your clients to have confidence in your abilities as their agent. Studies have also found that nourishing current relationships actually costs you less money than trying to create new ones — even more reason to focus on developing trust with the clients you have.

Want even more tips on boosting your client retention? Check out our free eBook, The Complete Guide to Client Loyalty and Retention!

Strengthening Insurance Client & Agent Relationships

Instead of only focusing on the pricing and details of your clients’ plan options (even though these are still very important!), your top priority should be having interactions that will build trust. You may be familiar with the term “relationship selling.” Relationship selling focuses on the human connection and relationship an agent builds with their clients. These interactions will help your client feel like more than just a number, or even worse, just another sale.

How can you strengthen your relationships with insurance clients? We recommend communicating on a personal level. Listen to your clients’ concerns and be adaptable when necessary. Adjusting your work style to meet your clients’ needs can help them feel like they matter and like they can trust you to do what’s best for them, even if it presents a challenge.

We recommend communicating on a personal level. Listen to your clients’ concerns and be adaptable when necessary.

Don’t Break Your Clients’ Trust

Now that you understand how important trust is, you can probably infer the weight of breaking it. The last thing you want to do is something that will upset your clients. Not only could you lose sales and renewals, but if word gets around that you’re an untrustworthy agent, no one else will want to work with you, either. Yikes!

Additionally, depending on the slip up, you could get in trouble for insurance agent negligence, which could result in a client suing you or even loss of your license. An insurance agent negligence claim can arise when you make a mistake that leads a client to believe they have coverage that they don’t have. This could mean you had a duty to act or refrain from acting in a certain way; you failed in your duty toward your client; the breach of duty caused your client harm that you, the agent, should have foreseen; or your client suffered actual damages (such as lost wages and medical expenses). So, you can see how negligence and loss of trust go hand in hand. If something does goes awry, be sure to apologize as soon as possible and take responsibility for your actions.

Trust is an agent’s most important non-renewable resource because you want your clients to feel safe, respected, and validated. If you do something to break this trust, it very well may cost you their business! The more positive feedback you can receive from clients, the more they’ll see you as trustworthy and worthy of referrals.