Why 89% of Insurance Agents Quit Within 3 Years

Many Insurance Agents Feel Undervalued At Work

Here’s a crazy statistic for you:

“For every 100 people who will join the [insurance] industry this year, only 11 of them will still be in the job in 36 months.”

While that statistic was first reported in 2015, it’s just as relevant (if not more), today.

Why are 89% of insurance agents quitting within 3 years?!

There’s two big reasons why insurance agents quit: they don’t feel valued, and they aren’t given the technology they need to do their jobs well. In addition, managing commissions while hitting performance goals is a stressful part of the job for many insurance agents.

Let’s review the reasons why insurance agents quit and how to address them.

1. They don't feel valued at work.

Research shows that 80% of finance and insurance agents feel they aren’t valued at work; they feel they are “only evaluated on what went wrong or could have been done better.” This is a major issue for finding and retaining top talent, which is more important than ever.

Additionally, people want to see the results of their hard work. However, when insurance agents sell a policy, research shows they “rarely get to experience a client’s payout from the sale.” Agents know the benefits of insurance in general, but they don’t actually get to see clients put those policies to use. They also don’t always get insight into the performance of the agency as a whole. 

Access to data on policy usage and agency performance metrics can help an employee better understand the impact of their individual contribution to the agency.

Use data to highlight individual and team productivity.

Having the right data to share with your agents and other employees is critical. It can enhance your conversations to make them more meaningful and evaluations more effective. Using technology can simplify this process and ensure you have up-to-date, comprehensive data that is impactful and relevant.

Regularly reviewing your team’s productivity is a great morale booster. It also helps your team stay aligned with and focused on agency goals.

When individual employees feel they’re working towards a larger goal for the team, this will help them see their value. In fact, “63% of employees reported that they wasted time at work because they weren't aware of what work was a priority, and what wasn't.” When your team doesn’t understand their contribution or the role they play in your company’s goals, they can start to underestimate their value overall. During peak times of the year, like enrollment season, this can start to take a significant toll on your team and your goal progression.

The same workplace study revealed that 39% of employees “don't feel that their input is appreciated” at their organization. Recurring agency performance review sessions also present an opportunity for team members to collaborate and share their ideas.

2. They don't have the proper tools.

In addition to not feeling valued, insurance agents aren’t always equipped with the technology they need to succeed and enjoy their work. Computerweekly.com points out:

“‘Discretionary effort’ in psychology is the difference between doing the bare minimum to get by and doing your very best. Withholding the necessary tools or making them difficult to access can lead to employees feeling angry at having to waste time doing grunt work and create a perception that the project is not very important.”

Providing your employees with industry-specific technology is incredibly important, both for their self-worth in their position and for your agency’s overall goals. When your agents see you place importance on their on-going projects and everyday tasks by equipping them with the tools needed to succeed, they’ll feel valued and will work harder.

In addition, an investment in the right tools for the job can help your agents work more efficiently and open up opportunities for advancement in their careers.

Give your agents more control over their work.

Equip your agents and employees with tools that enhance productivity, give them more control over their work, and, most importantly, help them succeed. Not only will it keep them on task, but they’ll feel a stronger sense of ownership over their contributions. When your agents feel valued they will work harder to help meet team goals.

If you’re a large agency, this might mean allowing insurance agents to access their own books of business through your agency management system. This can empower your internal and downline agents to operate independently and give them a sense of entrepreneurialism.

Take your technology to the next level.

Many insurance agencies are taking things a step further by providing more enhanced “toolboxes” to their insurance agents to help them do their jobs better.

A few tools many agents appreciate within an agency management system, like AgencyBloc’s AMS+ solution, include:

• Sales Enablement → Centralize your team’s sales efforts to one location. From the built-in VoIP (Voice over Internet Protocol) and phone dialer to compliance management and lead management tools, your agents can quickly gather, manage, and convert new leads. 
• Customer & Policy Management → Ensure new leads maintain their status of “client” with integrated client retention tools. Leverage health insurance policy management tools and the insurance CRM to keep everything organized.
• Agent Management → Streamline internal and downline agent and agency management. Automatically assign incoming leads to agents, manage each agent’s task list, and monitor productivity.
• Insurance Workflow Automation → Automate your agency’s day-to-day processes with built-in workflow automation. From lead nurturing to client retention to internal communication, your team can build workflows that support your daily efforts.
• Reporting & Data Analysis → Report on the success of your team’s initiatives with data analysis tools. Monitor the peaks and valleys, where opportunities lie, and how your team can be more impactful.

These are just a few features in AMS+ that agencies activate for their agents. Learn more about what’s possible with AgencyBloc’s Plus Suite, in our overview video.

3. Managing commissions is tiring.

This is another area where investing in the right tools can help your agents maximize their commission payouts, while also cutting overall time spent processing commissions.

We all know commissions processing is a time-consuming and tiring process, but it doesn’t need to be if you leverage the right technology. For example, AgencyBloc’s Commissions+ solution gives you a complete view of each agent’s payout and can quickly generate a comprehensive agent statement. Plus, you can use the same tool to identify any missing compensation either from the carrier or your team’s upline.

When you give your insurance agents access to data behind their commissions, they can more easily connect the dots and understand how their efforts impact their income. Also, instant access to commissions earned can be another great motivator for progress across your team.

Set your insurance agents up for success.

In order to hire, and more importantly keep, insurance agents and employees happy and engaged at your agency, you need to do two things: be able to regularly show them their value and provide them with the tools they need to succeed.

To accomplish this, you’ll need an industry-specific tools, like the ones in AgencyBloc’s Plus Suite. The Plus Suite combines the power of our AMS+ (agency management system), Commissions+ (commissions processing), and Quote+ (small group quoting and enrollment) solutions together to help health insurance agencies to grow their business.

Posted by Kelsey Rosauer on Thursday, July 25, 2024 in Agent Management

1. data management
2. productivity