4 Common Challenges Facing Insurance Agents
Insurance sales is a rewarding career, but, like any job, it comes with its own set of challenges and pressures. So what kind of roadblocks and setbacks does one face after becoming an insurance agent? Here are four of the most common challenges you are likely to face when you sell insurance for a living.
The Pressure to Produce
Probably the most common challenge for insurance agents is also the most obvious, but that doesn’t mean that it still doesn’t deserve a mention. When boiled down to its essential elements, the job of an insurance agent is to do one thing – bring in money by selling insurance. When insurance agents aren’t hitting the numbers they need to, or suddenly have a dip in sales, it can create a tense, under the gun atmosphere where agents feel pressure to deliver, no matter what. But, because insurance is a long game, where trust between agents and clients matter and long-term, reliable clients are worth more than high paying but quick to cancel one-offs, bending to that pressure and trying to pump up your numbers quickly without much thought to the future can often create more problems down the road than it fixes in the present.
Not Enough “Luxury” Coverage Demand
As the price of basic insurance coverage (health, auto, etc.) continues to grow, average consumers are finding it harder and harder to justify spending money on what they see as “luxury” insurance coverage. In this case, “luxury” means “anything beyond the absolute bare minimum of coverage needed to provide basic protection and to remain within the law.” While the Affordable Care Act may have created millions of new basic health insurance customers, it may also have taken away just as many potential buyers of life insurance, disability insurance, and other just as important types of coverage.
Being Cut Out of the Process
The internet and mobile technology may have made insurance agents’ lives easier in many ways, but now many insurance salespeople feel like it is a threat to their very existence. Many major carriers are now experimenting with direct sales to the customer via internet portals, cutting veteran insurance agents out of the relationship between company and customer entirely, or reducing them to customer care phone operators. And, on top of that, the abundance of knowledge available online means that canny consumers can look up almost any information they need themselves, rather than relying on a knowledgeable salesman to keep them informed.
Overcoming Negative Stereotypes
Like any salesperson, insurance agents are often viewed as predators looking to make a quick buck off unsuspecting victims: i.e. their customers. Everyone knows that insurance agents are out to sell a product, which often leads to the presumption that they are more interested in collecting credit card numbers than they are providing a valuable service.
If this all sounds frustrating and grim to you, remember—even in light of all the challenges they face, a good insurance agent continues to make good money and have a rewarding career. Like any job, it just takes a little initiative and creative thinking. Being an insurance agent may not be a stress-free lifestyle, but that doesn’t mean it can’t be done.
Need to obtain your state insurance license? America’s Professor’s convenient online courses allow you to study for your state’s insurance exam on your own time. Contact us today at 800-870-3130.
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