The Challenges of Being an Independent Insurance Agent


Did you know there were 36,000 independent insurance agencies in the US as of 2020?

Insurance is a highly competitive industry because of the many insurance companies available. Insurance agents face several challenges and especially if they are independent.

An independent insurance agent doesn’t work under any company but runs their agency. This puts them at a higher chance of facing obstacles since they are juggling multiple tasks.

To succeed in this field of work, you need to know what insurance agent challenges you are going to face and how you’ll overcome them.

Read on for more information on the challenges of being an independent insurance agent.

Balancing Administrative Work With Sales

As an independent insurance agent, you have several responsibilities. You are in charge of handling all administrative and operational work.

This involves managing your agency, bookkeeping, and handling your clients’ paperwork. You are also in charge of accounting and managing the agency’s finances.

This may be a lot to handle and leaves you with little time for marketing your agency and growing your clientele.

Finding New Leads

As an agent, you ought to know how to generate insurance leads. As is with other sales businesses, insurance needs a continuous flow of prospects.

Finding insurance agent leads may be difficult and expensive since you require money and a lot of time for marketing. Being a small independent agency, you have limited resources, and you need to use them wisely.

If you focus more on finding leads, you may also neglect your existing clients and eventually lose them.

Facebook final expense leads are an effective way of finding new leads for your agency.

Marketing Can Be Time-Consuming

Insurance requires networking—your marketing ability and strategy when networking is what grows your company. Prospective clients need your presence in meetings, phone calls, events, etc.

Although networking is a vital aspect of insurance, it may take up a lot of time.

As an independent insurance agent, you may be overwhelmed and left with very little time to perform other tasks. It would be best if you came up with a schedule to avoid dwelling on one area.

Getting Renewals

Once you’ve successfully found new leads, another challenge comes up. How do you get existing customers to renew their services with your agency?

In business, you should know that circumstances change. A client may not be in the same position when they first got their insurance.

For example, a client who owned a business may no longer have it. This means they will no longer need commercial insurance.

Challenges of Being an Independent Insurance Agent

Being an independent insurance agent may not be a walk in the park in a highly competitive industry.

There are several challenges you will face before you’re able to succeed. You need to know that being independent means you are limited in funds, workers, and networking.

Identifying these challenges puts you in a position to handle them when the time comes.

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