Marketing, Strategy

Asking for Referrals as an Insurance Agent

The Art of Asking for Referrals as an Insurance Agent: Tips for Success

Asking for referrals can be challenging for any business, but for insurance agents, it often feels particularly tricky. Insurance is a necessity, but it’s not exactly a topic that lights up the room at a dinner party.

So how do you get your clients to do the talking for you without it feeling awkward or forced? Let’s explore the art of asking for referrals and how to make it a natural part of your client interactions.

Why Referrals Matter

Referrals are one of the most trusted sources of new business. According to Nielsen, 92% of people trust recommendations from friends and family more than any other type of advertising. When a potential client comes to you through a referral, they’re already predisposed to trust you, and that trust can significantly shorten the sales cycle. 

In fact, research by Forbes shows that referral leads are more likely to convert than leads generated through other marketing channels.

But the real magic of referrals is that they compound over time. One referral can turn into a steady stream of new clients if you nurture those relationships properly. So, how do you get the ball rolling?

"There's no higher compliment—and no more effective way to grow a business—than a referral built on genuine relationships and positive experiences."
Middle-aged female headshot
Samantha Cowden
Benefits Account Manager

Tips for Asking for Referrals

  1. Make the Ask at the Right Time Timing is everything. You want to ask for a referral when your client is feeling positive about their experience with you. This could be after you’ve helped them secure a great deal on a policy or successfully navigated a tricky claim. When clients are feeling good about the service they’ve received, they’re much more likely to refer you to others.

  2. Make It Easy The easier you make it for someone to refer you, the more likely they are to do it. Create referral cards, provide a simple link to your website’s referral form, or offer pre-written social media messages that clients can easily share. Some agents even incentivize referrals by offering a small gift card or donation to a charity for every successful referral.

  3. Be Direct but Personable Don’t be afraid to ask directly, but keep the tone light and friendly. A simple, “I’m glad you’re happy with the coverage we found for you. If you know anyone who could use help with their insurance, I’d really appreciate a referral,” can go a long way. The key is to ask in a way that feels natural within the flow of your conversation.

  4. Show Appreciation Always thank your clients for referrals, whether or not they turn into business. A personal note, a small gift, or even just a sincere phone call can help reinforce your relationship and encourage more referrals down the road.

  5. Leverage Technology Use your email marketing automation tools to subtly ask for referrals. You can create campaigns that highlight customer satisfaction and end with a gentle referral request. Include a direct link in your emails where clients can submit referrals, making the process seamless.

Stack of notes and pencil.
Create processes that encourage referrals for your agency.

How to Encourage Referrals Before You Even Ask

While asking for referrals directly is important, you can make the process much smoother by creating a referral-friendly environment. The idea is to offer such a great experience that your clients are naturally inclined to refer you—sometimes even before you ask. Here’s how:

  1. Deliver Exceptional Service
    It sounds simple, but consistently delivering excellent customer service is the foundation for generating referrals. This means being responsive, educating your clients, and going the extra mile to ensure their satisfaction. Clients are much more likely to refer you if they’ve had a standout experience. Consider following up with personalized check-ins and providing support beyond the initial policy setup.

  2. Be Proactive with Client Engagement
    Keep the relationship going, even when your clients aren’t actively purchasing from you. Send them useful information, such as tips on policy renewals, seasonal insurance advice, or updates on industry trends. This keeps your agency top-of-mind, making it easier for clients to refer you when the opportunity arises.

  3. Create a Referral-Worthy Brand Experience
    Your brand goes beyond your logo or website—it’s the overall experience clients have with your agency. Ensure every touchpoint, from your emails to your social media presence, reinforces your professionalism and reliability. The better your branding and communication, the easier it becomes for your clients to recommend you to others. In fact, clients may feel more confident referring a company with a well-established brand presence.

  4. Offer Value Beyond Insurance
    Many people shy away from referring businesses because they don’t feel there’s enough value beyond the service itself. Provide educational content, like blogs, webinars, or even community workshops, to position yourself as a trusted advisor. Clients will feel more compelled to share a business that provides ongoing value and insight, rather than just a transaction.

  5. Implement a Referral Program
    Incentivize referrals with a structured program that rewards clients for their efforts. Offer small perks, like gift cards or discounts, when they refer new business to your agency. You can also consider giving clients a charitable donation option for each referral, which can motivate them even further, especially if they care deeply about a particular cause.

  6. Showcase Client Success Stories
    Social proof can be a powerful motivator. Share testimonials or success stories of clients who have benefited from your services. This not only strengthens your credibility but also gives clients a story they can easily share with others when referring you. By highlighting positive outcomes, you give clients a ready-made narrative to pass along.

3-d graphs with growth.
Referrals are a primary revenue driver for many agencies.

The Numbers Behind Referrals

Why should you focus on referrals over other methods of lead generation? Let’s take a quick look at the data:

  • Referral leads convert 30% better than leads generated from other marketing channels.
  • Referral customers have a 37% higher retention rate, meaning they stick around longer than non-referral customers.
  • Lifetime value of a referred customer is 16% higher than non-referred customers.

These statistics underscore the power of referrals as a reliable and cost-effective growth strategy for insurance agencies.

Want to Learn More?

Here are some great external resources on mastering the art of asking for referrals: