SMS messaging has become a staple in the insurance industry. Most clients prefer receiving insurance information by text rather than verbally because they want everything in writing. But how can you stay within the security and compliance requirements, and does text messaging for insurance agents actually work for building customer relationships?
We'll explore the barriers you face when contacting leads through SMS, when you should message them, and the setup you need to guarantee a smooth customer journey.
If you're looking for an SMS system that creates a seamless experience for your customers and employees, HookedCRM is the perfect solution. We've fully integrated a dialer, CRM, AI assistant, and an SMS messenger. Book a demo today, and we'll walk you through your workflow and show you how Hooked enhances your current process.
Why Texting Works for Insurance Agents
Today, text messaging has become an essential tool in an insurance representative's toolbox. Clients prefer text for reminders and forms they need to fill out, so having it available can only benefit your business. Especially if you're already contacting them through your dialer, clients have immediate phone access and can fill forms quickly.
Removing extra steps helps sustain prospect engagement, as even a few minutes of added friction can diminish interest. Plus, you can improve customer relationships by providing reminder messages and insurance updates. If you're concerned about how much time this will take out of your day, you can set up an automation within your CRM, so your representatives can focus on selling.
What to Text for Insurance Sales
Texting for insurance sales requires your representatives to send specific, curated messages at each pain point in a customer's journey. It's a lead management process that asks your agents to send or schedule messages as soon as they recognize the need for their involvement.
Here are just a few of the contact points you should consider:
| Step | Explanation |
|---|---|
| First Contact | After you initially contact your lead, send them a message thanking them for their time. This helps you build on the conversation you had and answer any lingering questions. |
| After a Quote, Before the Close | This message gives your client the information they need if they are shopping around different policies. This way, they have an accurate idea of what the policies are like and builds trust in your company. |
| Appointment Confirmation/No-Show | If you have another meeting with your lead, an automatic text message sent to their number can be a helpful reminder. Likewise, a message letting clients know that they missed their appointment keeps the lead fresh. |
| Post-Issue | When there's an issue with a client's application, a post-issue text can help eliminate frustration. Demonstrate client care through proactive communication. |
| Persistency & Lapse Prevention | Depending on the insurance policy, it can expire. A message informing them they will lose coverage not only keeps them as lifelong customers, but it demonstrates customer care. |
You should tailor messages to your clientele based on your industry. When speaking with your SMS provider, ask about workflows that have worked for you and accommodate them.
Staying Compliant While Texting Clients
When messaging clients, be aware of the security risks that can make you non-compliant. Some of these are industry- and state-dependent, but for the most part, you will have to abide by them if you want to send SMS messages to your leads.
Here are a few key factors you should consider:
A2P 10DLC Registration
Application-to-Person (A2P) standard 10-digit long code (10DLC) is a system that the United States has in place to allow businesses to send SMS and MMS to US phone numbers. This process can take up to seven business days for approval, but it confirms that your business is allowed to send messages to your clients.
This is an important step to be compliant with the law. Most SMS service companies will help with your A2P 10DLC registration, but much of the process relies on your tax ID or employer identification number. When setting up your demo, ensure the company you're looking at can help with this process.
Quiet Hours, Frequency & Opt-Out Handling
When sending messages to your clients, be mindful of the number of messages and when you send them. Depending on your state and business, it's best practice to send a maximum of three messages per 24-hour period, and federal law requires those messages be restricted to the hours of 8 a.m. and 9 p.m. in the recipient's time zone. However, these regulations depend on where the client resides.
All messaging must include a clear opt-out mechanism. Leads can unsubscribe from your business's SMS communications at any time, and your system must process these requests promptly.
HIPAA Regulations
If you work in the health and life insurance industries, you must abide by the Health Insurance Portability and Accountability Act (HIPAA). Through HIPAA, health and insurance brokerages are required to protect their client's health information. That means your messaging should not include any revealing information without client consent.
Setting Up Text Integration Within Your CRM
Text messaging works best when it's integrated within your CRM because it gives you context to message leads with confidence. When searching for an SMS provider for your business, find one that works within your current business stack.
If possible, we recommend seeking a CRM system with native SMS features since you won't have to integrate anything, and you'll know it was built to work together.
However, there are some things you should be aware of when setting up your CRM/SMS integration:
One Number Per Agent vs. Agency Line
When you set up text messaging through your CRM, decide if your agency needs a single phone number or personalized numbers for each agent. If you have a small agency, one line could be sufficient. However, we recommend opting for personalized numbers for each representative.
Multiple lines can keep your team organized and accountable for their own leads. With a single agency number, you can see everyone's conversations. However, that means everyone else can see the message too, which creates confusion and can mix up the agent assigned to the lead in your CRM. Discuss your needs with your team and ask if it can be customized to your needs.
Logging Texts Against the Contact Record
An essential element of integrating text messaging with your CRM is automatic text logs in the client's CRM profile. This keeps a consistent record of interactions with your leads and ensures everyone knows where leads are in your workflow.
If you have an AI assistant, it can use that information to provide context for its suggestions and even summarize the interaction for you the next time they contact you.
Handling Inbound Messages On a Call
When you introduce SMS messaging in your workflow, you must handle inbound messages when you are handling another lead. If you're on a call, you can't interrupt the conversation to help another lead, but an alert can guide your next steps.
Of course, if there is a lull in the conversation, agents should be able to respond. However, with an AI assistant, you can ask the agent to respond to messages or use cached messages when recognizing key terms.
After-Hours Expectations
According to quiet hour regulations, insurance agents cannot send messages from 8 a.m. to 9 p.m. in most states. Follow this rule even if your leads respond after hours, and make sure your agents follow it.
Some states restrict quiet hour regulations further, so check your state regulations before sending late-night or early-morning messages.
Common Mistakes That Agents Make
Because of the medium, text messages can imply casual conversation, but when discussing serious matters like insurance, agents should remain professional in every interaction. That's just one of the many mistakes agents can make when they start messaging leads without regulation. Here are a few more you should be aware of:
- Unregistered 10DLC
- Cold messaging a purchased list of leads without receiving consent
- Not sending an opt-out message
- Identical messages to a large number of leads
Hooked CRM's SMS Features
Hooked is the perfect CRM for your insurance business needs. We are specifically built for the insurance industry, and we've combined all the tools for a successful sale. This includes essential tools like a dialer, AI assistant, and SMS capabilities.
Each tool communicates with the others and creates a seamless experience for both you, your employees, and your customers. Our SMS features include automated messages, customizable templates for every situation, AI message assistance, and scheduling. These features allow you to stay ahead of the competition and build a stronger relationship with your customers.
Book a demo with us today, and we'll walk you through your current workflow and show you how you can upgrade your process.
