Reasons why insurance agents lose customers

Reasons why insurance agents lose customers

Getting customers is a complicated job and keeping them loyal to your service ranks as one of the most complex tasks for any business. When it comes to insurance policies, insurance agents’ position is to keep people happy with their agency’s collections, and profits can be overwhelming.

Insurance agencies sell, mainly, the promise of life and business peace of mind to their clients in areas such as health, real estate, automobile, and business policies. Given the importance of having financial protection for life’s unforeseen events, and in the context of the country where they are located, getting insured is not so difficult.

The truth is that there are many behaviors, procedures, and responses that push the insured to leave their insurance agency. Salespeople are left without their direct customers, and the failure to retain them creates a knock-on effect for the entire company.

Why do customers leave insurance agents?

According to some studies, there are clear indicators that expose the reasons why a client abandons his insurance policy and turns to an insurance company or, in the worst case, decides to be on his own without the protection of his life or assets.

At the top of the list is customer mistreatment or neglect. When policyholders don’t feel they are the most important people to their insurance agent, they tend to put aside everything related to product quality and costs and focus on the poor service they are receiving. At Sentry, we detail the most common mistakes that lead insurance applicants to look for another insurance agent:

Working only to close the sale

It is expected that, once the long-awaited insurance sale is achieved, agents dedicate themselves to continue looking for policyholders. In this process, they neglect the monitoring of the already closed insurance policies. The right thing to do is send information through frequent e-mails with all the details the policyholder needs and avoid calling and asking questions about necessary policy information.

No follow-up

It is not enough to send a message with the necessary information after the sale is closed. It is a mistake to assume that the customer will contact you if they have a problem or doubt. Communication must be permanent, and the sending of information must be systematic and updated. It also adds points to send corporate greetings during the months of national holidays, birthdays, and the end of the year.


Customers value security and commitment from insurance agents, so getting all promised information across is crucial. Failure to keep agreements or promises can easily scare off any policyholder. Giving your word and maintaining it is the key to having happy and satisfied customers.

Other reasons why your customers may leave you

Although it is clear that customer abandonment leads them to look for other options, there are other factors, both external and internal, that influence their decision to change their situation.

The product is bad quality

As an insurance agent, you have to be sure that the service you promote is up to the policyholders’ needs and expectations. You can work tirelessly to keep them informed and attended to; however, if the policies and the agency’s responsiveness are lackluster, all the effort will be in vain.

Competition with better prices

During economic problems worldwide, it is normal for people to look for options that better suit their pocket. Therefore, if competing insurance agencies have better costs for the same benefits, policyholders often migrate to them. The way to counteract market offers is to have a unique proposal and one that is so necessary that other agencies do not tempt customers.


Users who move cities or countries must inevitably close or finalize their contracts to settle in their new home. In these cases, the insurance agent should let the client know if the agency has branches or plans in their new residence area.


When the insured dies, the end of the relationship is reached. The objective of providing support for funeral expenses is fulfilled, or the property or business contracts are terminated if this is the family members’ decision or those in charge of the deceased.

Control and organization with Sentry CRM

Once the errors or situations by which insurance agents lose their customers have been identified, the next step is to address the failures and fix them. Considering that churn and lack of follow-up are the main reason customers leave, it is crucial to support operations and processes with the installation of Customer Relationship Management (CRM) software.

One of the best options on the market is the Sentry CRM, which is specially designed to make insurance agents’ work, regardless of their branch, systematized and effective.

The platform allows to quickly open customer data, stores in the cloud all the information to make real and daily monitoring of all cases. The interface enables sending e-mails, text messages, and scheduling calls to maintain close and effective communication with policyholders.

It also provides daily or weekly reports to analyze each case to improve service quality and policyholders’ responses. Being on the wave of digital insurance, agents dramatically increases the chances of maintaining customer loyalty for a long time.

With all the tools and fundamental data at hand, insurance agents have no excuse to lose customers. Take advantage of the resources you have at hand, and in a short time, you will notice the growth of your profits and the respect of your policyholders.

You may be interested in: Elevator Pitch for insurance agents

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