The insurance industry is a tough one to break into, with more than 90% of new agents leaving the business in the first year and the rate increasing to more than 95% when extended to five years. It's no wonder that many agents who are just starting out don't have a very high success rate. But what are the main reasons for this high failure rate? And what can new agents do to increase their chances of success?Michael Sams, an experienced insurance agent, explains that if he hadn't started while he was in college, he wouldn't be in business today. This is because rejection can be hard to take, and it's important for new agents to be able to handle it.
Brent Kelly, an insurance speaker, coach and consultant with more than 15 years of practical experience, adds that introverts can often be better communicators than extroverts. This is because they know when to be quiet and listen, and when to ask the right questions. It's also important for agents to be able to communicate effectively with their customers. This means understanding how each customer prefers to communicate, whether it's by phone, email or voicemail.
Agents should also take the time to build relationships with their customers so that they are the first person they call when they need a new policy. Chris Burand, president of Burand & Associates, an insurance agency consulting firm, estimates that the failure rate for new producers is 70% to 80%. This is because insurance sales isn't about getting rich quickly; it's about getting rich over a long period of time. Jelenevsky adds that playing sports can be an advantage, but it's not an end in itself.
New agents must become experts in the products they sell and have a firm understanding of marketing and lead generation. Starting a new career as an independent insurance agent can be intimidating, but there are ways to increase your chances of success. It's important to talk to experienced agents and get advice on how to handle rejection and build relationships with customers. It's also essential to become an expert in the products you sell and understand marketing and lead generation.