Reasons why many Insurance Agencies (Brokers) fail

September 13, 2019 in Insurance Broking



Reasons why many Insurance Agencies (Brokers) fail

Before you start reading this, I’d like to mention in advance that this article is for brokers whose answer is ‘yes’ for any of the following questions.

Are you starting a new career in insurance?

Have you been in the industry for a while and not really made it so big?

Do you want to improve your client relationship?

If you answer ‘yes’, this article is written perfectly for you. Over the years, we have seen so many insurance brokers/agents quit in their first couple years. After going through multiple researches, we’ve come to know the mistakes they’ve made. Read further to know why they gave up midway and what should have been done instead. 

Mistake 1: Focusing on money and not on people

There are a few people who joined the industry for a mere reason of making lots of money. If you have the exact intention in you, this might not work most of the time. An insurance broker’s focus should be on offering value and sincerity to customers and not on money. Of course, everyone wants to make a wonderful living as experienced agents and earn a great income. Agreed. But no successful agent becomes successful overnight, it takes time, effort, and failure to master it. They set financial goals too, but they also understand that can be achieved by HELPING people.

Mistake 2: Failing to put more effort

If you want to be successful, you have to work your fingers to the bone. Remember, no shortcut! Working in the insurance industry is not a 9-5 job where you have your team lead to evaluate your progress or appraisals to recognise your efforts. It’s only YOU! You have to stay motivated no matter the number of rejections and disappointments. The self-determination and persistence in you decides the chance of success. Be extremely hardworking. Period.

Mistake 3: Responding late to clients

If you are not attentive to your clients’ problems or concerns, you are most likely to lose them. Personally, I want to be acknowledged immediately, so do you, so do your CLIENTS. Everyone’s mind works in a similar way. When your clients are not given such importance, it will upset them and there is a higher chance of failing the business. We want to resolve this issue thus came up with a brilliant solution, Sibro. Whether it is a policy follow up or a renewal reminder or an email enquiry, everything can be managed from a single place. We don’t want to advertise our product but we want you to know how this issue can be solved. It has helped a huge number of brokers better communicate with clients. They even started getting more clients due to great customer experience. This is all what we need, right?

Mistake 4: Failing to incorporate new technologies to insurance

Insurance industry is constantly changing and so you have to cope up with it accordingly. These days, insurance agents/brokers have changed the way of finding prospects and updating their business. They incorporate new technologies such as online marketing strategies (paid ads, SEO, blogging, affiliate marketing, etc) and CRM software (managing policy, claims, and clients simultaneously). This way you will deliver a very smooth experience for your clients, clients are happy, they speak about you in situations relatable (an effective ‘word of mouth’) and in turn drives more new clients. In short, do this and success will come to you.

Mistake 5: Failing to organize time effectively

Most insurance brokers start losing track of customers as clients increase. It is not a big issue in the beginning but leaving it unaddressed can lead to a huge loss. The reason may be an insurance salesperson spending a lot of time in shuffling between multiple tools to track client activity and interactions with each client. Why spend your everyday time on paperwork and documentation when you can automate most of these tasks? Yes, insurance CRM can automate your double work and centralise all your client’s data in one place. Problem solved? No. Here comes another problem. Most CRMs gather data which is irrelevant and which you won’t be using in the near future. It will again utilise most of your time and make your business look complex. Don’t fall into such traps, I repeat it, DON’T!

Have you already started working with a complicated CRM?

Exit it before it becomes too late.

How can I identify the best CRM?

Indeed, there are many best CRM’s out there. To identify the suitable one for your business, you have to USE it. While using, notice if it’s simple, easy to understand, and provides the only data you need and not unimportant ones. For an example, data like the number of calls you have made in a day or a month is not going to help you in any way.

To get started, try using Sibro. I can assure that it’s going to be a wonderful experience. Because, Sibro is designed after listening to various brokers’ problems and reasons for failures. We made it very simple, self-explanatory, up-to-date, anywhere accessible. We have addressed every pain point already so you can work stress-free.

To conclude it, never repeat the above-said mistakes again and scale your business like a Pro.

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