Last week, I wrote about finding out if the insurance agent or broker was acting in your best interest which can clearly end up being a big problem when shopping around for insurance. Thankfully, I think most of us know to be on the lookout for those. What we aren’t as trained to do is trying to determine if we are dealing with a competent agent.
Most Of Them Are Crappy
The reality is that that according to numbers that I’ve seen, 92% of agents eventually fail and exit the business. Why is that?
Most Agents Don’t Belong In The Business
I know of many agents that started selling insurance with very little knowledge or skill. How does it happen? Selling insurance is not like becoming a lawyer or a doctor, there is little to no training required and most do the bare minimum. Why do they get involved? It looks like easy money. I mean think about it. selling a life insurance might net the agent several hundreds or even more.. it’s tempting when you have friends and family as well as other potential clients. They can already imagine making the big bucks.
Why Do These Guys Get Hired Then?
Think about it.. most insurance companies pay on commission only. Because of that, the company has little to nothing to lose by hiring agents that will likely not do well and have a shot at making it. Even in most cases that do not end up working out, the insurance company will have made money from the few sales the agent did push through as well as the training.
Only Deal With Experienced Agents
This is a general rule and there are exceptions of course but chances are that if your insurance agent has been doing this for 3-4 years or more, he/she is one of the 8% that is good enough to make a living out of it so that is probably a very good sign. Getting references is also another very good way to get some kind of idea.
Have you dealt with insurance agents? If so, were they part of the 92% in your opinion?