A career in insurance and risk management is rewarding and interesting. And while many people enjoy the fast pace and dynamic environment, there are some common operational insurance challenges agents must manage when operating their agencies.
Read on to learn more about four common insurance challenges agents face when operating their agencies and how to overcome them.
Four Common Insurance Challenges Agents Face When Running Agencies
Check out our solutions for managing these four common operational insurance challenges you may face when running your agency:
Keeping up with regulatory changes.
The insurance business is constantly changing. And since every state manages its insurance regulations differently, agents licensed in multiple venues must keep up with the changes in every state. The insurance department may update regulations based on changes to the statute or case law. Sometimes the changes are minor, but it is always critical to get it right.
Agents and brokers should focus on continued education and staying informed about their venues. Read updates and bulletins from the state insurance department and talk with colleagues about new regulations. Going to industry conferences is another way to stay current with industry changes.
Generating a steady flow of leads.
Another common insurance challenge for independent agents is generating a steady flow of qualified leads. You need to have new people to talk with and sell to — but this is impossible without a reliable lead source.
Spending time on marketing efforts is one way to generate leads. Another way is by purchasing exclusive lead generation and nurturing packages for your agency. Building a strong pipeline of leads is an ongoing part of an agent’s role.
Managing time effectively.
Agents and brokers manage lots of roles every day. It’s difficult not to get too caught up in administrative tasks, but agents need to focus on policyholder-facing tasks. With renewals, new business sales, lead generation, continuing education, marketing, administration, and communication tasks all on the agenda, managing time effectively is a must.
Try delegating administrative work to others in your agency and automating basic tasks. Research insurtech solutions to help you manage customer communications, documents, and other daily work tasks. Invest in a digital experience for your customers, which will also streamline agency operations.
Developing trusted relationships with insurers.
When you’re first starting as an independent agent or broker, building trusted relationships with insurers can be a challenge. You will want to develop these relationships to write business with these carriers and to have a strong working relationship once you have an existing book of business.
Work with your carrier partners and focus on best practices for your submissions and communications. Building a profitable agency with trusted partners can take time but the effort is worth it. California producers benefit from exclusive access to preferred insurance markets through their membership with the American Agents Alliance.
Join the Preferred Market Access Program
Our preferred market access program allows our California members to access quality markets through our specially built program. We’ve worked closely with insurance company partners to develop a program to help independent agents and brokers build a quality book of business. Our preferred market access program is one way to help solve your challenge of having access to best-in-class carrier partners.
Become a member of the American Agents Alliance to gain access today.