Abram Interstate Insurance Services, Inc., CMGA

Helping Independent Insurance Agents Since 1996

Caution: 3 Reasons Why Insurance Agents Fail | Business Tips

Published on April 20, 2017

While Insurance remains one of the most necessary products on the market for the general public today (who doesn’t need insurance of some sort?), Insurance Agents sometimes struggle to blossom with the demand.

Brent M Kelley, CEO of BizzGrizz points out that as new Insurance Agents enter the Insurance Industry every day, there are some that leave it, too.

We can help curb those leavings by taking a look at these 3 reasons why some Insurance Agents fail, and how to avoid those pitfalls.

  1. Expect too much too soon.

    Let’s face it, most of us live in the see it, want it, have it culture. We see something we like, want it, and then must have it right away. We look at successful people and think, “That must be nice, I sure wish I was that successful.” Wake up call; successful people work their tails off. Typically 20-30 years of hard work looks like an overnight success.

    The insurance business is tough and like every profession, it takes time, effort, and FAILURE to become a master. You must get kicked in teeth, make mistakes, have bad days, and maybe even question your sanity before you achieve a high level of success. This doesn’t mean the first few years have to be awful, but young agents often expect too much too soon. Learn and master your craft. Read, practice, grow, and before you know it success will find you.

    Understand that the insurance business should be looked at as a crock pot vs. a microwave. This doesn’t mean you can’t have positive results quickly, but young agent’s much understand that a huge book of business comes from developing relationships and expertise, not a sales gimmick.

  2. Lack of quality training/education

    I often speak with young insurance agents who are frustrated with their job. That can’t understand why this business is so tough. After a few minutes, I realize that this young agent was given a phone, and computer, and maybe a lead sheet with no training or mentoring. Of course they are going to fail. That’s like taking a person who has never golfed, walking them out to the golf course, giving them a club, and questioning why they can’t break 100.

    Young agents need training and mentoring. They need quality education. There are some great programs out there to help agents get a start. There are insurance association groups, formal classwork programs, or training from insurance companies. Most importantly, I think every young agent needs to find a mentor. Better yet, two or three mentors. Someone who has had success in the industry and is willing to help new agent find their way. This could be some from your office if you are fortunate. You can also find people across the country through social media. Find successful people and learn from them.

    Without quality education, training, and mentoring, young agents are much less likely to succeed.

  3. Focused on the wrong thing (money vs. people)

    If you are in the insurance agent business just to make money — leave. Let me repeat that. If you are in the insurance business simply to make money, you will not succeed. Maybe in the short-term, but over time prospects and customers will see right through you. The will know you don’t care about them, you only care about you.

    This is a people business. This is a relationship business. This is a service business.

    If you do not understand those three principles, you will not do great things. Period. If you focus on the people, money will come. If you focus on money, people will go. Get it?

    You can make a terrific income as an insurance agent. There’s no doubt about that. Great agents do and should make a terrific living. They work hard and help many people and businesses. They did not earn this great income by focusing just on money. Yes, they set financial goals, but they also understand those goals are achieved by focusing on helping people.

In re-framing these common pitfalls as learning points, newer insurance agents can gain the mindset and resources they need to flourish. That’s what Abram Interstate is all about. We want to see you succeed. If you didn’t know — every Tuesday we highlight one of our hot products on this blog that you might be able to sell well, and every Thursday we offer business tips for Insurance Agents. So bookmark us, and join the conversation.

Tell us on Facebook or Linked In, why do you think some insurance agents leave the industry without finding success? What can be done differently?

Abram Interstate Insurance Services, Inc. is a California wholesale insurance broker (CMGA) that has licensing and expertise to place business in both admitted and non-admitted markets for Personal Lines Insurance, Commercial Lines Insurance, and Agribusiness Insurance in California and surrounding areas.

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