25 January 2021

Debunking 5 Major Insurance Agent Myths

Everyone is entitled to a certain level of skepticism regarding insurance salespeople. Consumers want to know who they’re investing in and deserve a professional relationship of mutual trust and respect. But unfortunately, some continue to question the validity of agents. So, where do we draw the line between being a skeptic and believing myths?

According to the US Bureau of Labor Statistics, as of May 2021, there were an estimated 422,600 independent insurance agents selling life, property, casualty, health, automotive, or other types of insurance. Out of that massive number of agents, how many do you believe are legitimate? Have you ever encountered a customer or prospect who has asked too many questions about your sales tactics or experience?

Let’s dive a little deeper. The following are five common misconceptions concerning insurance agents and how to debunk these falsities.

Myth #1: To be a successful independent insurance agent, you need an insurance background

Truth: This first one is a bit tricky to debunk. Yes, someone well versed in insurance knowledge and an experienced agent is indeed an asset to any agency team. However, if a prospect asks how long you’ve been an agent and the answer is a short amount of time, such as six months, it doesn’t discredit the agent’s abilities. As many of you know, being an independent agent requires an extensive skill set. Excellent interpersonal skills, communication, organization, working cooperatively, and problem-solving are all crucial attributes of a successful salesperson. Other essential traits include an entrepreneurial spirit and openness to mentoring. Now we challenge you to match these skills with different job descriptions. You’ll quickly find that there are many that overlap. Communicating this to prospects and demonstrating your willingness to listen to them and fulfill their insurance needs should debunk these ideas.

Myth #2: Insurance agents only care about making the sale

Truth: This misconception is a common one. Not all salespeople are cookie cutter. Some agents prefer to be referred to as client service team members as opposed to salespeople. Look at a large national insurance carrier: Progressive. Their tagline is, “Think easier, think Progressive,” and encourages agents to use their products as simple solutions to insurance needs. Another bolt access partner, biBERK, offers commercial lines policies and clearly states that they will never oversell products or overcomplicate claims.

Similarly, encourage your valued customers to leave reviews on social media or websites such as Google or TrustPilot. Doing so will act as a tool that prospects (and skeptics) can use when they think twice about your intentions.

Myth #3: Insurance agents are simply the middlemen, making costs higher

Truth: To debunk this myth, we need to look at how many people successfully manage their insurance policies on their own. This statistic is tough to pinpoint, but we are willing to bet the number is tiny. Especially for business owners who already have their hands full with day-to-day operations.

With many people still working remotely, it’s common for them to fall for online insurance deals promising excellent coverage at unbeatable prices. But what’s hidden is the knowledge that insurance agents provide about what kind of coverage best suits your client’s needs. The reality is that it can take getting a claim rejected or unrenewed policy before those “too good to be true” virtual companies reveal themselves.

As independent agents, we suggest developing a tool kit for your clients. Specifically, have on-hand collateral showcasing why using an agency is the way to go. Don’t be afraid to get involved in your local community, from sponsorships to school events, and show your dedication.

Myth #4: Only extroverts make good insurance agents

Truth: This myth is an easily be debunked opinion. While some prospects want to hear an independent agent give a strong sales pitch, others prefer someone who will sit there and listen intently to their needs. Some want a loud, boisterous agent, while others don’t mind a quiet, shy one. In the end, what truly matters is finding the products & services to satisfy consumer needs.

Myth #5: Agents are a thing of the past. There’s no way they can keep up with the changing insurance landscape.

Truth: It’s no secret that the insurance industry is rapidly changing. With automation and AI on the rise, agencies need to stay on their toes. What needs to be understood to debunk this myth is that virtual tools do not hinder the sales process, but make it simpler, fostering communication with clients and prospects. Some agents may be set in their ways and find the digital sales landscape intimidating. However, many of the most successful agencies embrace technological change. Insurance buyers are more informed than ever, allowing salespeople to focus on building stronger relationships, discovering solutions, and providing long-term value to clients and partners.

Some agencies have gone so far as to eliminate their brick-and-mortar location, becoming completely virtual. This option provides opportunities for new employees from all over the globe, bringing a diverse team together. Rather than believing agents are a thing of the past, we’d like to think that working in sales is a great way to embrace the future.

Recap

There will always be opinions about introverts, extroverts, old-fashioned reps, technologically advanced reps, visible agencies, or those perceived as “a dime a dozen.” The critical thing to remember is that these are perceptions, not truths.

The only truths among the myths are that if you are willing to learn, stay open-minded, build meaningful relationships, overcome obstacles, and embrace change- you’re already a great insurance agent. Keep that positive attitude and keep going!

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