Working as an independent insurance broker offers great benefits. Being able to choose your own career path. Determining your own hours. Working from virtually anywhere. Having the potential for higher income because of your direct sales efforts. Your freedom and flexibility are virtually unparalleled. However, the role is not without challenges – especially for new brokers. In this post, we look at seven common pitfalls you could face.
- Misunderstanding Insurance Regulations and Products: New state and federal guidelines are enacted often. Insurers are constantly developing and launching new products. That makes it tough for brokers to keep up. Your lack of regulatory awareness and new products can lead to employer non-compliance and lost sales for you. But you can stay up to date on industry changes through training offered online and in-person through carriers, your general agency, and trade groups like the National Association of Benefits and Insurance Professionals (NABIP) and its regional chapters.
2. Ineffective Time Management: Managing your time effectively means prioritizing tasks, setting realistic goals, and avoiding distractions. It also means utilizing tools and techniques to boost your productivity. Understanding how you’re spending your time – and making conscious choices about your time allocation – can help you achieve more, while reducing stress. Start by creating your to-do list. Break down large tasks into smaller, more manageable steps. Consider using the Eisenhower Matrix. Track your time. Adopt the Pomodoro Technique: work in focused blasts, with periodic breaks to help you maintain your concentration. Learn to delegate to others – and how to say no.
3. Overlooking Client Needs in Favor of Quick Sales: Don’t just focus on sales. To be a successful broker, it’s important to truly listen to your clients. Ask questions to uncover their needs and learn about their challenges. Discuss budget considerations. Together this information will help you identify the right solution for each client’s unique circumstances. It will also enable you to establish and nurture trust and enable you to build long-term client relationships.
4. Neglecting Continuing Education and Industry Trends: Failing to stay up to date on the latest compliance guidelines and market shifts can undermine your ability to best serve the needs of your customers. Most states require Continuing Education (CE) Credits as part of the license renewal process. If you’re a Word & Brown (W&B) broker, we offer a roster of CE courses through our annual Week of Webinars. We offer others in connection with state and regional trade associations – both in-person and online. Visit the California Department of Insurance website or the Nevada Division of Insurance site for licensing FAQs. Additional CE training is available through WebCE, BetterCE, Kaplan Financial Education, A.D. Banker, and others – just to name a few.
5. Struggling with Sales Rejection: No matter how successful you may be as a sales professional, you are bound to encounter an occasional sales rejection. Soliciting feedback from your prospects and customers will help you improve your future efforts. Consider these suggestions from The Brooks Group regarding 6 Ways to Overcome Rejection in Sales.
6. Failing to Build a Strong Network: Networking is a critical component of business growth and leadership. It’s about opening the doors to new opportunities. Find ways to surround yourself with those who can help you build your business, develop, and thrive. Focus not just on peers and carriers through NABIP, but on potential mentors with other affiliations who can offer advice and referrals. Consider taking part in community groups like your local or regional Chamber of Commerce. Or join a service organization like Kiwanis International, your local Elks Lodge, or Lions International.
7. Not Leveraging Technology for Improved Efficiency: Another common pitfall for brokers – new and veterans of the industry – is failing to take advantage of technology to make your job easier. That includes quoting platforms, Customer Relationship Management tools, Artificial Intelligence, and more. Visit the Technology blog in the W&B Newsroom for more information.
Leverage Your W&B Connections
Ask your W&B representative about how our people, tools, and technology can help you avoid the common pitfalls that many new brokers face. We’ve been partnering with brokers for more than 40 years, and we’re known for delivering Service of Unequalled Excellence.
If you are not yet working with us, we make it easy to get started. Just register online or call us at 800.869.6989.
