7 Reasons why Insurance Advisers fail

7 Reasons why Insurance Advisers fail

Insurance adviser’s have a tough job to do. Selling insurance is not a very easy task because insurance is not bought but sold. It is said that more than 70% of the insurance advisers become inactive within one year.

At HelpInsure, it is our motto to empower insurance agents to make them successful. And so we studied the top reasons for failure and created solution to address that:

  • Lack of proper training

To be successful in any field one must master the basics. Many insurance agents do not undergo proper training and do not know basics of insurance advisory. Due to lack of knowledge these agents cannot advice customer properly or they cannot satisfy customer queries. Many agents are not even aware of the best selling techniques.

Sometimes even when agents want to learn there are practical difficulties in getting trained as visiting company branches is not possible all the time. However there are solutions to this problem and if agent is truly committed then he can use the tools to be successful.

  • Don’t invest for personal growth

Many agents want to make money fast. They fail to understand that insurance is like any other business where you also have to invest initially to gain expertise. If you give customers what everybody else gives then you will not be successful. You have to move beyond that. Invest in yourself via training, selling tools, CRMs etc

Every successful agent is successful because they did not rely on just company support but they found out other tools which can help them.

  • Give up too easily

Most insurance agents do not try hard enough and give up easily. The first few sales are easy as person tries to sell to friends and relatives but once this natural market is finished then agents find it very difficult to get new clients.

It is at this point many agents give up. They are short-sighted and don’t think about the long term. They have to be in the game for longer period and have to try consistently to be successful. Every great person did not become great in 2-3 months but it took them years of hard-work.

  • Don’t use proper tools and selling techniques

Selling is very difficult job and a salesperson has to be master of everything. If the agent does not know proper selling techniques or does not have proper tools to pitch product in right manner then how can they be successful? Similarly insurance agents also must master the selling techniques and improvise. They must use proper software to represent the products and service customers.

  • Poor client servicing

Client servicing looks like a job with no benefits but it helps in the long run. They fail to understand that every client is worth more than the first policy. You can sell multiple policies to a client if you maintain a good relation. Every successful company/ person/agent becomes successful only when they think about client first.

  • Think about short term gain Vs long term benefit

If agents think about commission before thinking about client’s interest then they may earn some more money in the short term but in the long run they will lose clients. An agent’s objective shall be to be the trusted financial guide of a family. Sometime even saying to a client that you do not have suitable product creates trust. Advice what is best for client and it will turn out to be best for you.

  • Try to sell what they have and not what client needs

All insurance companies and agents claim that they do need based advisory i.e. they sell based on clients need but when it comes to actual selling, agents just sell product which they are comfortable with. But an agent would be truly successful if he offers what client needs. He must understand the clients requirement and then offer best possible solution. If need be agent shall combine 2-3 products or use mutual fund / FDs to make best possible solution


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