Solving the insurance industry's turnover rate
Providing agents with a good support system, including thorough training and quality leads, can make a difference.
A lack of adequate onboard training strategies and a resulting lack of sales are causing significant increases in insurance turnover rates.
Between 2011 and 2016, the total number of quits, layoffs and discharges within the finance and insurance industry increased by 32 percent, according to data from the Bureau of Labor and Statistics.
Insurance agent turnover is becoming a massive problem in the industry today. Eighty-three percent of agents quit within three years, while 30% quit within three months, according to Centric Consulting. All too often, poorly-designed onboard training programs fail to set new agents up for future success, dragging them to one of two fates: either failing to meet their quotas and consequently getting fired, or feeling unsatisfied with their income and leaving a company on their own accord.
When it comes to combating the new industry norm of high staffing and low retention, “insurance recruiters have two options,” according to the PwC 2016 annual top issues report: “To hire experienced candidates, or recruit and develop raw talent through effective training programs.”
Hiring experienced candidates may not be the most feasible solution to this problem. The average insurance agent in the United States is 59 years old, according to a report from McKinsey & Co — meaning that many highly experienced, highly skilled industry professionals are quickly approaching retirement. Most likely to fill the increasingly vacant shoes left behind by this older demographic are millennials who lack relevant industry experience.
In addition, we’ve found that it’s relatively easy to become an insurance agent in the United States, as most companies do not have minimum education and skill level requirements. Beyond initial entry, it can be difficult for new agents to produce significant income from new sales due to a lack of prospects, or low-quality prospects.
Insurance companies can tackle high turnover by taking an agent-centric approach to their fundamental operations. The road to better retention is built upon providing agents access to high-quality leads and comprehensive training resources.
An extensive, in-depth training plan and resources will help agents build confidence and empower them with the skills they need to be successful in the long term. Training materials should ideally be put in front of agents daily to keep learning and engagement levels continuous, as there is always room for improvement no matter the experience level.
Once a good training program is in place, it is vital to ensure that agents have access to high-quality leads. Even adequately-trained agents still cannot sell policies if they lack opportunities. For this reason, insurance companies should consider investing in paid leads. Paid leads can save valuable time by eliminating the task of prospecting. A trusted lead vendor can help identify industry appetites and important criteria for agencies to ensure higher quality: lead platform filters can account for business size, quality of risk, and willingness to buy.
The high insurance agent retention rate is certainly a problem but it’s not unsolvable. Providing agents with a good support system, including thorough training and quality leads, can make a difference.
Travis Batiza is CEO co-founder of AssuredLeads, which launched in 2017 and optimizes commercial insurance production for brokers, agencies, and insurance carriers.
This article first appeared on AssuredLeads’ blog and is republished here with the author’s consent. These opinions are the author’s own.
Related: