Why do Insurance Agents fail?

Bad Communicators- Health Insurance agent

There are successful Medicare insurance agents who have figured out how to create a strong client base and grow it over time.

It all starts from the business mindset, communication, and the ability to develop strong relationships. 

However, every year, a large number of insurance agents fail for a variety of reasons.

You might be wondering why so many insurance agents fail to succeed. 

Here, I’ll give you insights into why I believe such a significant percentage of insurance agents fail in the industry.

Medicare insurance agents

Don't force Relationships with Beneficiaries

Successful Medicare insurance agents usually find it easy to interact with their prospects.
They value their clients’ opinions and take them into consideration.

An insurance agent with a contrary mindset is setting himself up for failure.

The insurance industry requires more than just selecting a strategy for your potential clients and executing it once.

You need to create an effective client relationship in order to build long-term connections with them.

According to studies, having your clients return year after year is better for your business than constantly seeking new clients.

When clients or potential leads call your office to speak with you, it’s important that you communicate with them effectively.

This means being upbeat and enthusiastic about answering all of their questions.

You should also be able to assess their needs during your conversation so you can develop services and find products that will fit their needs.

Failing to Study for Carrier Certifications- Medicare Insurance Agent

Failing to Study for Carrier Certifications

If you want to avoid failing as a Medicare insurance agent, it is essential to keep your skills updated and continue your education.

Even if you think you know everything about insurance, you will always learn something new.

 As a result, Medicare broker are required to retake their AHIP and carrier credentials every year. 

It’s very important to pass certifications such as AHIP; if you don’t, you won’t be able to sell insurance for the rest of the year and may lose renewals.

This is one major benefit of the Medicare advantage plan. 

You must be willing to put in the necessary work to succeed in this industry or you will become unsuccessful.

To help you prepare for any certification exams, we recommend using modules, review quizzes, and practice tests.

Keep a note of the questions you answered wrongly so you may go over them later and correct them.

If you pass any of the certifications on your first attempt, then you have accomplished a great deal.

That’s one less thing to be concerned about, allowing you to focus more on your goals.


Medicare Insurance Agents Need to Adapt- Insurance agent

Medicare Insurance Agents Need to Adapt

In today’s world, especially in the insurance industry, being adaptable pays off. 

If you aren’t, you will fall behind the competition, so stay on top of things!

You have to keep adapting every time, whether to new technology or a new method of doing business.

During the COVID-19 outbreak this past year, we observed the necessity to adapt to a “new normal.”

 It became increasingly important to make your clients feel safe and to take the required safeguards, such as holding meetings online rather than in person.

One of the most significant tools you may have in your inventory of resources is the internet. 

Social networks are an ideal way to achieve this success where you can find your target audience and connect with them.

Insurance companies do a variety of things online to improve their chances of success. 

It could be as simple as adjusting your services to the specific needs of your target market.

Maybe it’s being more available or having more plan options in your portfolio.

It could even be as simple as adapting to the technology that your clients prefer.

Learn what your target audience requires from you so that you may demonstrate your commitment to them. Stagnation is never a key to success.

Bad Communicators- Health Insurance agent

Bad Communicators

One factor that distinguishes a failed agent from a successful agent is whether or not he or she is a good communicator, both in-person and online (phone, email, voicemails, etc.). 

As an insurance agent, you’ll be engaging with people on a regular basis.

You must ensure that you are aware of the best techniques to communicate with the individuals with whom you are working, which may differ from client to client.

For example, one client may despise email and prefer a phone call, whereas another may despise phone calls and passionately prefer email.

It’s up to you to pay attention and communicate in the manner that your client prefers.

It’s also important that your clients believe they’ve been heard.

They don’t want to have to clarify their plan requirements multiple times.

They also don’t want to feel ashamed or embarrassed if the coverage information is difficult to understand. 

It’s also important to avoid using “elder speak” with people age 65 and up.

When working with your target audience, patience, understanding, and kindness can go a long way. 

Agents set up for failure will not listen to their clients and will focus on their own agenda (i.e., earning commissions).

Make sure you’re not repeating the same mistake as this agent! 

Pay attention to what your clients want and need from you in order for them to trust you. 

You can also stay in touch with them regularly on your products and information.

Insurance Agent Not Familiar with Their Target Market

Last but not least, if Medicare insurance agents are unfamiliar with their target market, they may run into some difficulties.

When it comes to insurance companies, the old saying “information is power” is undoubtedly accurate. 

It’s very vital to understand the demographic you’re selling when defining your target audience.

This will help you determine which types of plans should be included in your portfolio.

Are you selling to a wealthy clientele? What about a place where many people are snowbirds or sunbirds? Are you concentrating on plans that include hospitals in the network that are close by? Are you considering a health insurance program? All of this is important to consider when defining your target audience.

If you’re unsure, conduct some online research and contact a field marketing organization (FMO) such as Team Alvarez Insurance Marketing to ensure you’re specifically targeting your audience.

If you don’t already have a free account with us, you can link your NPN and start using our management platform right away!

While there are no foolproof things you can do to avoid failing as an insurance agent, you can follow these suggestions to reduce your risks of failure and increase your chances of achieving success.

Always keep in mind that your FMO is there to help and encourage you on your path!

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