07 Reasons for failure in insurance.
Although insurance companies keep on advertising the lucrative career and the best opportunities of earning in the insurance business, it is a harsh reality that there is always a lack of insurance agents in their company. It is a matter of fact 90% of insurance brokers fail and quit. You can hardly find any notable example of a successful insurance agent in your surrounding community but you can easily find several unsuccessful agents.
After having a case study of several agents, the following 7 reasons for failure have been discovered:
1. They quit too early
Most young people join insurance as a job, not as a career. Building a career is like starting or moving a heavy train which needs a lot of energy and time. when this train starts moving it does not need much power rather moves effortlessly. Unfortunately, they quit it at the very start when it has not been moved yet. Another example of building a career is like planting a fruit tree. At the start of this process, one has water, nurture, and take a lot of care without getting fruit. The fruit will start at its proper time. But if you quit watering or taking care too early you can not get fruits.
It is believed that prospecting is the raw material of an insurance business. Prospect is a potential customer or expected buyer of your product. Most insurance agent depends on the first list of prospects which they write at the time of joining. After some time the list is consumed and the agent becomes jobless. Prospecting is a continuous process as raw material is supplied to any mill on regular basis.
3. Fail to produce regular income to pay bills initially
As it is said earlier that insurance is not a job but a business and there is no guarantee of regular income in a business. Unfortunately, when an insurance broker can not produce income on regular basis, his bills and other expenses burden him too much. Then, he starts thinking to change his source of income.
4. Absence of a Solid Support system
This support is required on two fronts at home as well as at the office. The support from home means a lot to a young and novice insurance broker. This support may be in financial terms and maybe in the form of encouragement. Infect, these both types of support from home is hardly available.
The support from the office means, proper training and mentoring to a new agent. There may be some initial support to pay conveyance or cell phone bills from the office for a certain period.
5. Inability to work independently
Sometimes too much handholding support from the managers reduces the ability to work independently. Successful insurance brokers always like to work independently but some new agents are unable naturally to work independently. Their fear reduces their activity and less activity reduces their income and finally, they quit.
6. Lack of Passion for Profession
"Nothing is as important as passion. No matter what you want to do with your life, be passionate." _Jon Bon Jovi
To me, passion is like fuel for the profession. An agent with no passion for the insurance profession leaves it early. So it is the task of the recruitment manager to identify that passion at the time of the interview.
7. Fail to make a solid Marketing plan
Same as other businesses the insurance business also needs an effective marketing plan. It is the job of an insurance agent to be present in the mind of his customer. Insurance products and their feature must be propagated properly and continuously. In the modern era, information technology and social media platform have made it easy. Proper marketing will generate leads and there will be no shortage of prospecting. The insurance broker does not consider it and does not give it importance, he does not want to spend a penny for marketing and bear hardships that result in his failure.
Conclusion
It is the business not a job and if you are not enough passionate to provide social security to your community then do not join. Insurance companies should hire agents on merit and after hiring provide them due to support in terms of training and development.
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