What is the hardest part of being an insurance agent?
Finding potential customers is difficult and time-consuming; getting those customers to make a purchase once you track them down is even harder.
Challenge 1: Staying compliant with regulations
By far, one of the biggest challenges when it comes to selling insurance is making sure you stay compliant with laws and regulations.
Client acquisition: Finding potential clients is often the first hurdle in insurance sales. It involves reaching out to people, generating leads, and informing them about the importance of insurance. This task demands substantial time, effort, and strategic planning.
Life insurance is a very difficult product to sell. Simply getting your prospect to acknowledge and discuss the fact they are going to die is a hard first step. When and if you clear that hurdle, your next task is creating urgency so they buy right away.
Working in insurance and/or financial services can be highly stressful. According to the study, released in May 2019, 71 percent of agents and advisors reported having moderate or high levels of stress. This compares with 63 percent of the investors surveyed.
High-pressure work environment
Selling insurance can be stressful. It requires long work hours.
Insurance agents succeed when they prioritize their customers' needs over their own profits. The most commonly cited reason insurance agents fail is that they fail to listen to their customers and take the time to find the best product to suit their needs.
Building trust with potential clients is perhaps the most demanding part of selling insurance.
The rising cost of healthcare. One of the biggest challenges for insurance professionals is the ever-increasing cost of healthcare. Health insurance professionals have come to expect premium prices to go up once renewal season comes around.
One of the primary reasons insurance agents can accumulate wealth is their commission-based income structure. Unlike salaried employees, agents earn a percentage of the premiums they sell to clients. As they build a client base and generate more sales, their income potential increases.
How many insurance agents fail?
That is a 90% failure rate for new agents.
Most independent marketing organizations will train insurance agents on all the products they want them to sell. Then the independent marketing organization will train the insurance agent to ask a few questions and learn a sales presentation that just sells a product.
While there are many kinds of insurance (ranging from auto insurance to health insurance), the most lucrative career in the insurance field is for those selling life insurance.
Legitimate Denials
People have successfully fooled insurance companies into paying out for false injuries, so these insurers are often paranoid about paying out for a false claim.
Life insurance is the most profitable—and the hardest—type of insurance to sell. With the highest premiums and the longest-running contract, it brings in cash over a long period of time. In the first year, agents make the largest annual sum on a policy, bringing in anywhere from 40–120% of the policy premium.
Being an insurance agent is a great career choice, but that doesn't mean it's always easy. Slow sales, angry clients, and tight deadlines can all lead even the most successful agent to feel exhausted and unproductive — in other words, feeling burnt out.
Pretty much any claims role is stressful. It's high turnover (because its stressful), case loads are always unmanageable, customers are typically angry and emotional over their loss and can have unrealistic expectations of the adjuster and claims process.
You won't have as much control over your agency or the decisions you make for your business. Your company will have a certain amount of control over your business operations, hours, and more. Perhaps the biggest negative to going the captive route is your inability to offer more than one product to your customers.
As an insurance agent, you may think that being an introvert is a disadvantage when it comes to selling insurance. However, being introverted can be an advantage in this industry, as introverts often excel at building deep relationships and listening to the needs of clients.
- Firefighter.
- Social worker.
- Broadcaster.
- Newspaper reporters.
- Emergency dispatcher.
- Mental health counselor.
- Anesthesiologist.
- ER nurse.
It's a monumental shift, but there are massive growth opportunities as the insurance industry continues to expand and become more complex. The next few years mark a significant transition as legacy insurance professionals retire — leaving 400,000 jobs open — and paving the way for the next generation.
Why do insurance companies drop you?
An insurance company can drop you for a number of reasons. Most commonly, insurers will cancel or opt not to renew coverage for drivers who file an excessive amount of claims. Drivers who are convicted of a DUI, perpetrate insurance fraud or fail to pay their insurance premium can also face being dropped.
You might be denied car insurance if you:
Have too many at-fault accidents. Are too old or young (unless you're in a state where age-based insurance decisions are prohibited). Have a poor CBI score. Own a fast or expensive car.
Talent shortages and workforce challenges
The quality of an insurance company's workforce impacts its capacity to grow, adapt to changing markets, and provide exemplary customer service. Post-COVID has presented all organizations with talent shortages, and the insurance industry is no exception.
While it is possible to earn a significant income by selling insurance, becoming "rich" solely from insurance sales is not guaranteed. Insurance agents earn commissions on policies they sell, and building a strong client base and specialization can contribute to higher income potential.
Ben Feldman (September 7, 1912 – November 7, 1993) was an American businessman and one of the most prolific salespeople in history. As early as 1979, Feldman had sold more life insurance than anyone in history.
