Characteristics of an Insurance Agent

Insurance agents are arguably the mainstay of the Indian life insurance industry. They help millions of individuals and families protect their financial futures by providing insurance solutions. In total, there are over 29 lakh individual agents of life insurers. But what are the characteristics of an insurance agent? It's a unique blend of skills, behaviours, and personal qualities that build trust and build customer satisfaction.

What Are the Qualities of a Good Insurance Agent?

Every insurance agent has their own set of qualities. This isn’t someone who constantly asks you to buy a policy? A successful insurance agent isn't just selling policies; they handhold you on your financial journey. They are trusted advisors who guide their clients towards the right financial decisions. In essence, they are your partner in achieving your financial goals.

So what are the qualities of a good insurance agent? Here are some of the key qualities to look out for.

People Skills

A great personality once said, "Effective communication is 20% what you know and 80% how you feel about what you know." This is true about insurance agents. On an average day, an insurance agent interacts with many people from all walks of life. Strong people skills are one of the main characteristics of an insurance agent. Such skills are essential for building rapport and understanding an individual’s needs. A good agent communicates clearly, actively listens, and shows empathy. They avoid jargon and explain complex insurance concepts in simple terms. This is very important when discussing sensitive topics like life insurance or term insurance.

Good Salesmanship

While insurance is about protecting people, it's also a business. Effective salesmanship helps agents reach more people and offer solutions that meet their needs. This doesn't mean being pushy. It's about presenting the benefits of life insurance in a way that resonates with the client's financial goals. Thus, sales are contingent upon the attitude of the salesman, not the attitude of the customer. Good salesmanship is probably one of the most important qualities of a good insurance agent.

Customer Service Skills

Customer service is at the heart of any industry, not just the insurance sector. With millions of policies in circulation, good service is a great attribute to have. The service occasions in an insurance policy lifecycle are many including policy issuance, policy renewal, claims, premium payment, policy modification and endorsements. Thus, customer service skills are among the most sought-after characteristics of an insurance agent. Agents should be responsive to client inquiries and concerns. They should provide timely updates and resolutions. Going the extra mile to help clients builds trust and loyalty, and SBI Life's Life Mitra initiative is an example of customer-centric service.

High Energy Level

"Energy is equal to desire and purpose" --- these are the immortal words of Shri Aurobindo. In the insurance sales business, enthusiasm is contagious. An energetic insurance agent motivates their clients and instils confidence in their recommendations. They show a genuine passion for helping people secure their future, making the process of buying life insurance less daunting. If you are looking for another one of the most sought-after qualities of a good insurance agent, a high energy level will be near the top of the list.

Honesty

Honesty is non-negotiable in the insurance industry. Clients rely on their agents to provide accurate information and transparent advice. Building trust through honesty is crucial, especially when dealing with sensitive financial matters. Misleading clients or engaging in life insurance fraud can have severe consequences, such as debarment. The phrase "insurance is a subject matter of solicitation" is commonly used in the insurance industry to emphasise that insurance agents and companies should never actively solicit or push insurance products onto individuals who may not need or understand them. The emphasis is on ethical practices and ensuring that customers make informed decisions.

Commitment

Being an insurance agent is not your usual 9-to-5 job. It requires dedication and a commitment to serving clients' needs even outside regular hours. Good agents are always available to answer questions and provide support. There are various examples of good insurance agents who are always at their clients’ service irrespective of the hour. Clients remember service providers who have stood by them in the most trying circumstances. So, commitment is one of the key characteristics of an insurance agent.

Eagerness to Learn

The insurance industry is constantly evolving. Regulations change, new products are launched, and clients need strategic shifts. A good agent is always eager to learn and stay updated on the latest developments. This ensures they provide the most relevant and beneficial advice. Regular learning also opens up different opportunities for an insurance agent and allows them to be on top of the situation.

Versatility

Every client is different. A good agent is versatile and adaptable. They can tailor their approach to match individual needs and preferences. Whether dealing with a young professional or a seasoned one, a good insurance agent can offer suitable insurance solutions. Be it term insurance, ULIP or a pension plan, they will always listen to customer needs and offer the best possible solution.

Persistence

Insurance agents complete sales after multiple rounds of discussion. Sometimes, the client may not initially entertain the idea of buying a policy, so rejection is very much part of the sales process. A good insurance agent is persistent and doesn't give up easily. They understand that each "no" brings them closer to a "yes." Their determination helps them find the right clients and make a real difference in their lives.

Good Product Knowledge

The life insurance industry is continuously evolving and products are being improved upon. In this scenario, a deep understanding of insurance products is key. Agents should know the ins and outs of different policies, riders, and benefits. This helps them recommend the most suitable options for each client's unique circumstances. So, good product knowledge is one of the most non-negotiable characteristics of an insurance agent.

The Bottom Line

The characteristics of an insurance agent go beyond just sales skills. When choosing an insurance agent, look for someone who prioritises your needs, communicates clearly, and demonstrates a genuine passion for helping you secure your financial future. They are, after all, your guide or Life Mitra in helping you find the right life insurance policy that can aid in fulfilling your life goals.