Written by George Natar B.Sc, M.Sc, MCyHRMA – Certified Business and Insurance Trainer
The productivity of an insurance agent depends on his ability to make good decisions with initiative and critical thinking. The decision-making process in the insurance industry is very important, as it affects not only the agent’s efficiency but also the experience of his own clients.
Α. Initiative in the work of the insurance agent
Initiative is related to the willingness and ability of the insurance agent to act without waiting for orders or instructions. This includes:
- Clientele development: The agent seeks new opportunities, approaches potential new clients and builds relationships of trust.
- Personalize proposals: Adapts insurance proposals to the needs of each client, utilizing the data at their disposal.
- Time management: Organizes their activities in such a way as to maximize their productivity.
How can an agent develop their client base?
- Networking & Referrals – Attend professional events, networking events, and industry conferences. Build relationships with existing clients so that they recommend them to their acquaintances. Partner with other professionals (e.g. accountants, lawyers) for referrals.
- Digital Marketing & social media – Use LinkedIn, Facebook, and Instagram or X, depending on the audience, to provide useful content and attract interested parties. Create educational articles or videos that answer frequently asked questions by clients. Targeting ads to specific audiences based on their needs.
- Targeted Customer Approach – Market analysis and determining customer priorities based on their profile. Using personalized messages instead of general approaches. Maintaining communication with prospective customers through email marketing and follow-ups.
- Excellent Service & Trust – Existing customers are the best “ambassadors”. Maintaining good relationships and providing quality service brings more recommendations. Showing interest in the customer (not only during the sale, but also after), trust is strengthened.
How to properly personalize proposals?
- Understanding the customer – Discussing their needs: What are their priorities? What risks do they want to cover? Analysis of their financial situation: What is their available budget? What insurance do they need without being financially burdened? Identifying potential “gaps” in their existing insurance.
- Using data & analysis tools – Utilizing CRM or other software to record customer history. Customizing offers based on age, lifestyle and professional risks. Anticipating future needs, to propose solutions that cover the customer in the long term.
- Differentiating proposals per customer – Presenting different options with clear comparisons (prices, benefits, terms). Adjusting the communication method based on the customer profile (a different style for a young professional, another for a family). Creating packages that combine coverage with additional benefits (e.g. health & life combination).
- Avoiding standardized solutions
General insurance proposals do not attract the customer’s interest. When the agent shows that they understand the unique needs of the client, it builds trust and increases the likelihood of closing the deal.
How can an insurance agent optimize their time management?
- Prioritize – Use the Eisenhower Matrix to separate tasks into Important & Urgent that either require immediate action (A priority) or are scheduled for a specific time (B priority). Urgent but not Important issues should be delegated or automated (C priority) and non-urgent and important (D priority) should be limited or avoided.
- Daily and Weekly Scheduling – Set specific time bunches for phone calls, meetings, follow-ups, and email management. Prepare for the next day the night before to avoid delays. Use digital tools (e.g. Google Calendar, CRM) for reminders and appointments.
- Avoid time-consuming distractions – Set “focus time” without interruptions (e.g. turn off notifications, avoid social media). Limit pointless meetings and unnecessary phone calls. Use predefined templates for emails and proposals, so they are not written from scratch every time.
- Automation & Task Delegation – Use automation tools (CRM, email sequences, chatbots) to communicate with customers. Delegate non-critical tasks (e.g. social media management, file organization) to assistants or external partners.
- Evaluation & Improvement – Weekly performance review: What went well? What needs improvement? Set new goals and adjust strategies if something is not working properly. Use techniques such as Pomodoro (25 minutes of concentration, 5 minutes of break) to maximize productivity.
B. Critical thinking in the decision-making process
Critical thinking is essential for properly evaluating data, comparing alternatives, and choosing the best solution for each customer. It includes:
- Customer needs analysis: The insurance agent carefully examines the needs, priorities, and risk profile of each customer.
- Product and service comparison: Investigates available options and selects the most appropriate insurance coverage.
- Objection management: With data-based reasoning, addresses customer doubts and objections.
How is the correct needs analysis being done?
- Investigating the customer’s profile
- Age, marital status, occupation, income and future goals.
- Existence of other insurance policies and any gaps in coverage.
- Lifestyle (e.g. sports activities, travel, special risks).
- Assessing priorities & goals
- Does he want to protect himself, his income, his family or invest in the future?
- Does he need liability, health, life, pension or property insurance?
- What is his budget and how much can he invest in an insurance plan?
- Risk Profile Assessment
- How likely is it to find itself in a difficult financial situation?
- Are there any professional or personal risks that need to be covered?
- What is the level of risk tolerance?
The insurance agent should not just “sell”, but act as a consultant. Ask targeted questions and listen actively to propose solutions that really suit the customer. Present scenarios and comparisons to help the customer understand the value of insurance.
How is a proper comparison of insurance products being made?
- Understanding the available options – Information on the insurance products on the market and their coverage. Comparing different packages in terms of cost, terms and benefits. Analyzing the differences between basic and optional coverages.
- Cost-benefit analysis
- Which insurance option offers the maximum coverage for the money the customer can afford?
- Are there additional benefits that increase the value of the insurance without a significant increase in cost?
- Which products provide flexibility in payments or the ability to adjust in the future?
- Review terms and conditions
- Are there any exclusions or limitations that may affect the customer’s decision?
- What are the waiting periods and compensation procedures?
- Does the product cover specific risks that concern the customer (e.g. pre-existing conditions, occupational risks)?
- Use of digital tools & comparison tables – Create comparison tables with a clear presentation of the differences between the proposals. Utilize CRM software and online platforms that allow for quick analysis of the options. Provide transparent information so that the customer feels secure with their choice.
- Personalized proposal to the customer – The insurance agent must explain not only the differences between the products but also which one best suits each customer’s profile. Adapt the proposal to specific needs and priorities, do not simply recommend the most popular product. To strengthen the customer’s trust by showing that he has researched all the options and proposed the best solution.
How do you handle objections effectively?
- Actively listen & understand the objection – Does not interrupt the customer but listens carefully to their concern. Repeats the objection for confirmation: “If I understand correctly, you are concerned about the cost of insurance. Is that correct?” Shows empathy: “I completely understand your concern, and it makes sense that you would want to consider all your options.”
- Dealing objections with information & logical reasoning
- Objection: “It’s too expensive.”
“Let’s see what the coverage includes together. In comparison, life insurance costs less than a daily cup of coffee, but it gives you financial security for your family.”
“We can customize the plan to better fit your budget.”
- Objection: “I don’t need it now.”
“Most people think about insurance when they need it, but then it may be too late or more expensive.”
“If I had called you a year ago, would you have said the same thing? What has changed since then?”
- Objection: “I’ll have to think about it.”
“I totally understand. Can I send you a summary of the coverages and talk to you again on Friday?”
“Can I help you clarify any questions you may have so you can make the best decision?”
- Turn objections into opportunities – Every question / concern is an indication that the customer is interested but has unanswered questions. If the insurance agent can answer the questions clearly and confidently, they increase their chances of closing the deal. Uses examples and real stories (e.g., cases of customers who benefited from the insurance).
- Productivity-Boosting Strategies
To improve his effectiveness, the insurance agent can implement:
- Continuous Professional Development (cpd): Attends seminars and trainings on new products and market trends.
- Use of technology: Utilizes CRM and automation tools for customer management and time optimization.
- Network development: Creates partnerships and utilizes referrals to expand his client base.
Why is continuous professional Development (cpd) necessary?
- Staying up to date on new insurance products & coverages – Insurance companies are constantly updating their products. Knowing the latest innovations allows the insurance agent to propose the best solutions. Customers appreciate it when they receive customized proposals based on recent developments.
- Understanding changes in legislation & regulations – Insurance contracts are affected by legal and tax changes. Proper information helps avoid legal risks and provide accurate advice to customers.
- Familiarity with new technologies & tools – CRM systems, digital platforms and automation tools improve productivity. The use of artificial intelligence (AI) and big data helps to better understand customers. Customers expect digital solutions (e.g. online contracts, digital signatures).
- Improve sales & communication skills – Continuous training is not only about products, but also about negotiation and customer management techniques. Sales seminars and emotional intelligence (EQ) practices help build trusting relationships. Developing skills such as storytelling makes the presentation more engaging.
- Maintain a competitive advantage – The most successful agents are those who stay informed and constantly evolve. Attending seminars, workshops and training programs ensures that they do not fall behind the competition. Participation in professional networks and forums helps in the exchange of knowledge and experiences.
How does technology improve the performance of the insurance agent?
- Utilize CRM for customer management – CRM (Customer Relationship Management) systems allow the organization of customer lists and the storage of contact data. They help in planning follow-ups for contract renewals or new proposals. They provide data analysis to understand customer needs and create personalized offers.
- Automate processes to save time – Automation tools allow sending reminders, updates and emails without manual intervention. Chatbots and AI-driven support can answer frequently asked customer questions instantly. Electronic signing of contracts (e-signature) reduces the time to complete agreements.
- Use digital tools for analysis and predictions – Big Data & AI analytics help predict customer needs and create personalized insurance proposals. Product comparison platforms allow for the rapid selection of the most suitable policy.
- Improve communication and customer service – Video calls & online meetings reduce the need for physical visits, increasing flexibility. Digital platforms allow for the rapid sending of offers and documents. Automated messages remind customers of important dates (contract expirations, payments, etc.).
- Strengthen digital marketing – social media & email marketing will help reach new customers. Facebook, LinkedIn and Google ads improve the visibility of the insurance agent. Digital campaigns allow for personalization of offers and reaching a targeted audience.
How does a strong network develop?
- Partnerships with other professionals – An insurance agent can partner with accountants, lawyers, financial advisors, and other professionals to provide a complete solution for their clients. These partnerships can lead to mutual benefits for all parties. Substantial partnerships with entrepreneurs or companies provide massive opportunities for group insurance (e.g. corporate insurance).
- Leveraging referrals from existing customers – By encouraging existing customers to recommend the insurance agent to friends, family, and colleagues, new opportunities and contacts are created. Referrals are considered extremely valuable, as they are more likely to lead to successful sales and already have a level of trust from the recommender. The insurance agent can offer incentives or rewards to customers who refer to others (e.g. discounts, free services or other benefits).
- Create a strong online presence – An online presence is crucial for developing a network, through social networks (Facebook, LinkedIn, Instagram, X). Participation in online forums and discussion groups on insurance and financial topics can help create new connections and partnerships. Create a professional website or blog, providing useful content to attract new customers.
- Strengthen reputation through reviews and testimonials – Positive reviews from satisfied customers can help strengthen the nature of referrals (recommendations). Good reviews and testimonials act as certifications of the reliability and quality of the insurance agent’s work.
- Attend professional events and conferences – Insurance industry seminars, conferences and events provide excellent opportunities for networking and enhancing your professional profile. Participating in professional groups (e.g. the Chamber of Commerce) helps build trust and share knowledge.
Conclusion
The productivity of an insurance agent is not only based on the number of sales but also on his ability to make decisions with initiative and critical thinking. Continuous improvement, a strategic approach and adaptability are key factors for his success in the competitive insurance industry.