How to Diagnose Potential Clients' Problems (Insurance)

In the insurance industry, most potential clients do not walk in saying, “I need a better policy.” They come in with confusion, uncertainty, or frustration — and often, they are unaware of the gaps in their current coverage. Your ability to diagnose these problems accurately is the difference between being seen as just another agent and becoming their trusted advisor.

1. Uncover the Life Event Driving the Need

People rarely shop for insurance without a trigger. It could be buying a new home, starting a business, sending a child abroad for studies, or recovering from a recent loss. Ask questions that reveal the event behind the inquiry so you can connect your solution to their real concerns.

2. Ask Questions That Go Beyond Price

Too many agents jump straight into quoting premiums. Instead, focus on understanding their risks and priorities. For example: “What would happen financially if you were unable to work for six months?” or “If something happened to your property, how quickly would you need it restored?” These questions open conversations about value, not just cost.

3. Identify Hidden Coverage Gaps

Most people are underinsured and do not even know it. Review their existing policies and point out where they may lack protection. For example: “Your travel insurance does not cover emergency medical evacuation, which could cost tens of thousands if you get injured abroad.” By diagnosing the gap, you position yourself as the problem solver.

4. Understand Their Risk Tolerance

Some clients want comprehensive coverage for peace of mind. Others prefer lower premiums with higher deductibles. By asking, “Would you rather pay more each month and have fewer out-of-pocket expenses, or keep premiums low and take on more risk?” you tailor your solution to their comfort level.

5. Show Real-World Scenarios

Bring your diagnosis to life with relevant stories. For example: “One of our clients thought their home policy covered flooding, but it did not. After a major storm, they faced a $40,000 repair bill. We updated their policy to include flood coverage so they never face that risk again.”

6. Confirm Their Goals Before Presenting the Offer

Repeat back what you have heard: “You want protection for your home and vehicles, coverage for overseas travel, and life insurance to secure your family’s future. Is that correct?” This shows you have listened and understood, building trust before you present your recommendations.

The Bottom Line

For insurance companies, diagnosing a potential client’s problem means looking deeper than the policy they ask about. It means understanding the events, risks, and emotions driving their decision. When you connect your offer to their real-life concerns, you stop being a salesperson and become a trusted guide.

Get in touch — we are here to help you win more clients and build lasting relationships in the insurance industry.