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Written by Forrest Klein
Health Insurance & Medicare Marketing Specialist
Feb. 3, 2025 5 min. read
Common Mistakes to Avoid as a Health Insurance Agent
Success as a health insurance agent depends on knowledge, strategy, and client trust. However, even experienced agents can make critical mistakes that impact their sales, reputation, and overall effectiveness. Avoiding these pitfalls can help you build a strong client base and establish yourself as a reliable professional in the industry. Here are the top mistakes health insurance agents should avoid to ensure long-term suc
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Focusing Only on Sales, Not Relationships
Many agents prioritize closing deals over building long-term client relationships. While sales are important, pushing a sale and neglecting the relationship can lose you money in the long-run. There are a few reasons why that is:
1. Lack of trust means your client might be sold by other agents. If your client changes or cancels their plan, you lose future renewal commissions.
2. High turnover can lose earned commissions. If a client disenrolls within 90 days, you could face a chargeback from the carrier. This isn known as a “rapid disenroll.”
3. Client satisfaction can bring additional clients to you. It happens often. A beneficiary who is happy in their plan may refer their spouse and friends.
If you’re a Health Insurance agent, you’re in the business of helping people. It’s not a bad thing to make money, but you should do your best to take care of clients. If their needs are not met, you are hurting both them and yourself.
Not Leveraging Technological Tools
Insurance agents make their money by selling insurance policies. Any time spent on tasks other than talking to clients can keep you from profits. Digital tools are essential for efficiency and competing in the industry. Tools that streamline processes, get you leads, and help you keep up with clients are endlessly important. Many agents still rely solely on traditional methods like cold calling, missing out on digital marketing opportunities to generate leads and build their brand.
Check out which tools Agent Boost Marketing recommends here.
Not Asking for Referrals
Referrals are one of the most effective ways to grow your business, yet many agents fail to ask satisfied clients to recommend them. Word of mouth will always be your most effective marketing tool. Referrals trust their friends, so you start already on some level of trust. Leads that have been referred convert into sales at much higher rates than others. Agents should ask all successful sales and established clients for referrals.
Neglecting Compliance and Regulation
Health insurance is a heavily regulated industry. Failing to adhere to compliance standards can result in severe penalties, even up to license suspension and legal action.
Patient confidentiality and privacy is very important. Regulations protect patients from avoidable harm. Knowing and following the rules put in place is absolutely a large part of your job.
Ignoring Ongoing Education
The insurance industry is constantly evolving. Policies change, new products are introduced, and regulatory requirements shift. Stagnation in knowledge can lead to missed opportunities and compliance pitfalls.
Invest in your professional growth through continuing education and certification programs. Updated knowledge not only boosts your confidence but also establishes you as a credible authority in your field.
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