The insurance agent is not just the face of the insurance company; he is also the interface that understands the market pulse which helps in product design and even positioning
The role of the insurance agent is undermined by strong stereotypes of someone who is trying to talk you into something that you don’t want or need, someone who is there to cheat you and what not. I have my own recollections of agent uncle walking into our house always nattily dressed as if it was a uniform, chat about existing policies my father had, update on their progress, and enquire about family members and their well-being, before bringing up a new plan that will do a lot of good. His departure left my father most often thinking about his finances than he would otherwise in so much detail.
The insurance agent did play a telling role in an era when financial products were far and few and insurance agents doubled up as financial advisors owing to no exposure to financial product let along financial literacy. The role of an Insurance agent or advisor has remained the same; provide clients with insurance options that suit their needs. Traditionally most agents sold only life insurance policies, but with increasing financial complexities, individual needs and product proliferation; they sell life, health, retirement, pension and sometimes even other policies such as auto, household and accident related covers. The idea behind the success of cross-selling is the clients are already in a frame of mind to listen to the benefits of insurance products when they walk in the door. This is a great opportunity to propose other products that provide financial stability.
To many it may seem a simple task, but a lot goes before an individual becomes an agent. First, there are minimum stipulated qualifications that they need to have, next as insurers we train them on insurance, which includes them passing an agent’s qualifying examination conducted by the insurance regulator. We also train them on our product suit; understand individual’s financial status, on sales kills, techniques and strategies before they start selling under supervision before they get on their own. In my experience hardworking individuals who have the ability to perform necessary research and who have a strong background in business or finance do well selling insurance.
It is not an easy job being an insurance advisor and many would tell you that it is one of the most challenging careers you can take on. Yet, it is also a very fulfilling job which one gets to realise with time. Take for instance, the paramedics in a hospital; though it is the doctor who diagnoses the illness and prescribes a treatment, it is the nurse, the technicians and support staff who execute the advice for the patient to be cured. The agent’s role is like the soldier in a war, he is the face of the war, business in this case. A war is won by soldiers, not by generals plotting it in safe war rooms; likewise, we plot the strategy, design products and empower our agents to make successful product sales. And, the way a soldier protects our borders for us to live in peace, the insurance agent provides protection to the families of those who are insured. The fact that the insurance penetration in the country is 4.1% of the GDP is largely because of the agent’s drive to go far and wide to insure people and protect lives. It is one of the most under stated achievements of the agents; their role in providing insurance protection to millions of policyholders.
Likewise, the economic value of an insurance agent is not fully understood; imagine if you did not have insurance for a moment? In an ideal rising income economy, additional income would have gone into discretionary spending and consumption expenditure. Smart and successful agents knock on doors where consumption expenditures are rising. In fact, many families’s discretionary spending capacity probably will not yet be fully committed to new consumption expenditures, installment payments, life-style habits, or savings programs but for the agent. With his knowledge of financial products and its importance to manage future finances, insurance agents provide serious thought to consumers on the need to save and invest through life insurance. Thanks solely to the agent’s ability in making the life insurance sale; the family has the economic values in the insurance contract at its disposal rather than none.
Although, at the base lies a sales driven transaction, many agents have realised the way to grow is to expand their domain expertise and personal finance acumen. A needs analysis is the first step towards selling insurance; it is also the starting point in developing a holistic financial plan. Many agents have successfully gone into financial planning as a career by qualifying as certified financial planners (CFP) which enables them to sell a suit of financial products including insurance. While some may visualise insurance agents as those looking for a share of the wallet, they in fact help you reduce discretionary expenses and channelize it towards regular savings and investments.
Though, largely commission-based remuneration, agents have several working benefits of flexi-time and even flexi-office to suit their convenience. Many agents become successful in taking on a second career while being agents such as teaching and training. Finally, purely from the moral perspective, surely the society is better off when it is protected against risks that it faces than being exposed to risks that it cannot balance itself. Insurance agents are the catalysts that enable individuals realise the virtues of savings, investing and protecting one’s future financial needs by being friends for a lifetime and beyond. A career in insurance sales is a lot enriching, self satisfying and for the greater good of society.
