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If you want to turn prospects into loyal customers, avoid these mistakes.

8 Mistakes Insurance Agents Need to Stop Making Now

Insurance agents are like any other salesperson— constantly working to learn, grow, and refine their practices to serve their clients best. But like anyone else, they’re not perfect and can make mistakes costing them sales or their reputation with customers.

So in this article, we’re going to look at the eight major mistakes insurance agents need to avoid to succeed. By the end, you’ll know what not to do and how to start improving your skills and customer relationships.

1. Talking Too Much and Not Listening to Clients

Insurance agents need to be able to explain the product, coverages, and costs associated with an insurance policy, but they also need to be able to listen to their client’s needs and understand their concerns.

Why? We’ll tell you:

• It can make customers uncomfortable—or even angry. Nobody likes to feel like they’re being talked at without having a chance to voice their opinion.
• It can turn customers off. If an agent is too “salesy,” the customer may lose trust and decide to purchase from another provider.
• It makes your product hard to understand. If an insurance agent talks too much without allowing their customer to speak and ask questions, the customer may feel confused and overwhelmed.

Try this instead:

Give your customer a chance to speak and ask questions. Make sure to explain the policy clearly and concisely, but don’t be afraid to ask questions and allow your customer to voice their individual needs.

This will make them feel more comfortable and show you’re genuinely interested in finding a policy that best suits their needs.

2. Not Focusing On Your Target Market

Not every insurance policy is suitable for every customer. Insurance agents need to understand their target market and tailor their sales pitch to meet those needs.

Here’s why this mistake is so costly:

• It can cost you sales. If you’re pitching products that don’t meet the needs of your target market, you’re not likely to make many sales
• It can damage your brand. If customers feel you don’t understand their individual needs, they may lose trust.
• It wastes time. You’ll be spending time on leads that aren’t likely to turn into sales, which takes away from spending that time on those that are.

Try this instead:

Before anything else, research. Take the time to understand your target market and their needs, then create a sales pitch designed to meet those needs.

For example, if you’re targeting younger customers, focus on the importance of being insured in case of an accident or medical emergency. Show them how a policy can help and what coverage is available

3. Using Too Much Jargon and Technical Terms

Jargon doesn’t make you look smart —it makes you look like you’re trying to be smarter than your customer. This can come off as condescending and make the customer feel like they’re not being heard or respected.

Here’s why this mistake needs to stop:

• The customer may not understand. Jargon and technical terms can make a policy seem more complicated—and expensive—than it actually is.
• It may make them feel stupid. If the customer can’t understand the content you’re saying, they may feel like they’re not being taken seriously.
• Your message may get lost. If you’re using jargon and technical terms, you’re likely not getting your point across in the most effective way.

Try this instead:

Don’t assume that your customer is a master of insurance terminology. Instead, focus on having a conversation using language your customer will understand.

Explain all the technical terms as you go, and make sure you’re talking at a comfortable speed. If needed, have reference materials available for customers who want more information.

4. Not Knowing Your Products by Heart

Knowing your product inside and out is essential for any insurance agent. It demonstrates to the customer that you’re a subject-matter expert and can be trusted to explain the policy and associated costs effectively.

Here’s why this mistake’s so damaging:

• It makes you look unprepared. If customers ask questions and you can’t give them a good answer, they may doubt your expertise and look elsewhere.
• It can slow down the sales process. If you don’t know your product, explaining it to your customer can take longer, increasing the chance of them losing interest.
• It can cause confusion. If you can’t answer the customer’s questions about a policy, they may feel confused and not proceed.

Try this instead:

Learn your product inside and out. Read your company’s manual, research, and talk to other agents to get a good grip on all policy aspects.

But more than anything else, think from the client’s perspective. If you were buying this policy, what questions would you have?

5. Always Taking a Defensive Stance

Insurance agents tend to adopt a defensive stance when talking to customers—like they’re walking on eggshells and trying to avoid an argument.

But why’s that a problem?

• It doesn’t show customers you’re listening. If you’re too defensive in your conversations, it could come across as if you’re not hearing what the customer is saying.
• It won’t build customer relationships. If a customer doesn’t feel heard or respected, they may not return or even recommend you to others.
• You could miss out on sales. If customers feel you’re not being open and honest, they may choose to buy from another provider.

Try this instead:

Be open and honest with your customers. Don’t be afraid of criticism or dissenting views—listen to them and consider them during the sales process.

Most importantly, practice active listening. Ensure the customer feels heard and that you understand their wants and needs before offering a policy.

For instance, if a customer is concerned about cost, ask them what budget they’re working with and tailor your policy. This massively reduces the chances they’ll feel unheard or ripped off.

6. Not Trying Again after Getting a “No”

A “no” isn’t necessarily a bad thing. It’s a chance to review the conversation and listen to what the customer says.

Here’s why you should never give up:

• It may be a misunderstanding. Sometimes, customers are confused about a policy or the coverage it offers. Give them a chance to ask questions and explain their needs.
• It may be an opportunity. Some customers may be initially unwilling to commit—but they could be willing to discuss further if provided with more details on the policy or its benefits.
• It’s a chance to prove your expertise. If a customer has objections to a policy, don’t just brush them off. Instead, listen carefully and use your knowledge to explain the ins and outs of the policy in a way they can understand.
• It’s an opportunity to build trust. Showing customers that you’re listening and considering their needs will make them feel respected and more likely to do business with you in the future.

Try this instead:

Don’t take the “no” too personally. Ask the customer what’s making them hesitant to sign up and give them a chance to explain their situation.

Offer to provide more information or discuss things further, and be willing to negotiate if needed. And most of all, don’t be afraid to follow up—you may be surprised by the outcome.

Many prospects are initially hesitant due to the bad behavior of previous insurance agents. Use this to prove that you’re different and willing to go the extra mile.

7. Not Conveying Your Product’s Value

Many insurance agents make the mistake of talking about their product’s features and costs without explaining its value. And with so many providers offering similar policies, customers need to understand why yours is better.

Here’s why this mistake’s damaging:

• It can lead to price wars. If customers can’t differentiate between similar policies, they’ll focus on the one with the lowest cost.
• It can make you look amateurish. If customers assume you don’t know your product well enough to explain its value, they won’t take you seriously.
• Your client may not appreciate what they’re buying. If customers don’t understand why they should buy your policy, they likely won’t—no matter how good it is.

Try this instead:

Focus on how the product provides value to the customer. Explain how it fulfills their needs, why it’s different from other policies, and how it can help them in the long run

Highlight any unique points of differentiation, such as an insurance company’s claims process or their customer service.

Get rid of unnecessary details and focus on the policy’s benefits. Show customers that you understand them—and that you care.

8. Not Pre-researching the Client

Pre-researching a customer gives you insight into their wants and needs ahead of time, allowing you to create a tailored policy suited to their situation. If you don’t have enough information to make educated guesses, you’ll most likely offer a one-size-fits-all policy that won’t meet their needs.

Why you can’t afford to make this mistake:

• It wastes your customers’ time. If you don’t have the right information on hand, it’ll take longer for you to provide them with a policy.
• It undermines your expertise. If a customer can tell you don’t know their needs, they may not trust you to give them the right.
• It leads to missed opportunities. Without pre-research, you may miss out on opportunities to upsell or cross-sell products that your customer actually needs.

Try this instead:

Conduct research on your customer’s background and situation before your conversation.

Besides the standard questions—age, location, driving record, etc.—try to find out more about their particular needs and wants.

Dig a bit deeper. For instance, if they have a young family, you may want to recommend a policy with additional coverage for their children.

It’s also helpful to check reviews and social media. For example, do your customers have a particular carrier they prefer? Are there any trends or common complaints associated with the policy you’re offering?

The more details you know before the conversation, the better prepared you’ll be—and the more likely you’ll be able to form a lasting relationship with the customer.

Sign Up for Insurance Bob Today

Insurance sales is a competitive field, so it’s essential to stand out from your competitors. Avoiding the mistakes above is an easy way to do that—and show your potential customers that you’re the best choice for their insurance needs.

The key is to be attentive, honest, and prepared.

Take your time to get to know your customers, tailor policies to their individual needs, and show them you’re willing to go the extra mile to earn their trust. In the long run, this will pay off, and you’ll start to build a base of loyal customers.

One last thing: if you’re serious about taking your insurance career as far as possible, sign up for Insurance Bob today. It’s a free 20-day online course teaching you how to research clients effectively, create tailored policies, and effectively close sales.

Sign up today—you won’t regret it.