Being an insurance agent is a great gig. You sell products that allow people to manage risk and help them out when the unexpected strikes. Your job is people. But these days, being an insurance agent is more difficult than ever. Here are three challenges that are particularly vexing to insurance agents trying to make ends meet in the 21st century, along with strategies to overcome these challenges.
Changing Attitudes about Insurance
In the past, when people wanted to purchase insurance, they didn’t have any other choice but to go see their insurance agent. Now, people are more likely to shop online, compare prices, and purchase a policy, all without ever having seen an insurance agent. As public mores about insurance have evolved, more often than not it is the insurance agent who has been cut out of the equation. Finding a way to add value to the transaction is more critical than ever for insurance agents. Leveraging the advantages of being local, or offering additive services, such as house calls to prospective customers, are some of the ways agents can remain relevant in the face of change.
A Tech Revolution
Technology is a double-edged sword for insurance agents. It may make it simpler to connect to your clients, provide policy information, and handle claims. However, it is easier than ever for clients to shop around and find a policy at a rate they are willing to pay. In many cases, consumers are willing to sacrifice their relationship with an insurance agent in favor of a cheaper premium they found online. In order to be effective, insurance agents have to become digital natives. They have to know how to engage with their prospective clients on social media. Designing apps that enable prospective customers to peruse, or even purchase your products, is also critical.
Cutthroat Pricing and Narrow Profit Margins
The surge of financial technology has led to razor thin profit margins for local insurance agents. They now have to compete in a market that is easier for large firms to thrive in, for customers who don’t really value relationships with insurance agents like they used to. Adjusting to this new environment while trying to pay your bills can be difficult. Working out of a home office, using freelancers to cover additional duties, and exploiting high tech services to cut costs are some ways today’s insurance agents can keep margins low, and stay competitive.
Insurance agents continue to thrive in today’s market, but it is more challenging than ever. However, as you fight to overcome adversity, always remember that you aren’t alone out there. With 65 years of combined expertise, the team here at VerifiaBill believes we can overcome these challenges and deliver your clients an accurate, transparent insurance invoice.