Why Product Deprecation in Insurance Is a Team Sport
When the word “product deprecation” comes up in insurance, it’s easy to picture dusty products getting quietly swept under the rug. But for wealth-management advisors and entry-level sales teams, product deprecation is like switching plays mid-match, not just cleaning out an old kit bag. You’re not just managing policies – you’re guiding people through big financial decisions! In the UK and Ireland, this means handling everything from closed group pensions to quietly retired life insurance wrappers with sensitivity, skill, and the right team setup.
Why does this matter? Because 27% of UK insurance clients surveyed by Zigpoll in March 2024 reported switching providers after a product they held was discontinued—citing poor communication and lack of proactive support. Get this right, and you’ll build loyalty (and sales figures). Get it wrong, and clients walk, often for good.
Here are five ways to optimize product deprecation strategies in insurance, with team-building front and center.
1. Recruit for Empathy and Adaptability, Not Just Sales Chops
Technical know-how is crucial, but your insurance team needs to excel in conversations that could feel like break-ups. When a unit-linked whole-of-life policy is being retired, many clients will feel unsettled. Think of it as telling someone their favourite brand of biscuits is gone for good—except it’s their retirement savings.
What to look for:
Prioritize candidates who have experience in customer-facing roles where the message wasn’t always positive. Think hospitality workers navigating menu changes, or retail staff during product recalls.
Concrete example:
One UK wealth manager boosted retention by 9% in 2023 (internal data) after shifting hiring criteria to include emotional intelligence assessments. They found that advisors scoring high on empathy handled product switches—like closing older critical illness covers—more smoothly, keeping clients happy and loyal.
Implementation Steps:
- Add scenario-based questions to interviews: “How would you explain a product closure to a long-term client?”
- Use role-play exercises simulating real insurance deprecation calls.
- Assess candidates with empathy-focused psychometric tests.
Comparison Table: Key Skills for Deprecation Success
| Traditional Sales Rep | Deprecation Specialist |
|---|---|
| Targets quotas | Handles tough calls |
| Focuses on product features | Listens to client concerns |
| Pushes “what’s new” | Explains “what’s ending” |
| Seeks quick wins | Cultivates trust over time |
2. Structure Insurance Teams for Fast Response — Not Business as Usual
Deprecating a product can feel like a mini-crisis for insurance clients. Your team structure needs to reflect that. Rather than funneling all queries through general sales, create a dedicated “transition squad” for retiring products.
How this works:
Assign 2-3 team members as the go-to experts when a pension or investment product is sunsetting. These specialists handle all client communications, proactively reach out, and report back on trends or sticking points.
Implementation Steps:
- Identify upcoming product deprecations and assign a transition lead.
- Draft templated communication scripts for the team.
- Set up a shared dashboard to track client responses and issues.
Real numbers:
One Dublin-based firm restructured support for their outdated with-profits plans. Result? Average client response time dropped from 4 days to under 16 hours, cutting negative feedback by half within just three months (2023 client feedback data).
Caveat:
Smaller teams may find it hard to dedicate staff. In these cases, rotate deprecation duties on a monthly basis or train everyone on key scripts and FAQs.
Mini Definition:
Transition Squad: A small, cross-functional team dedicated to managing client communications and support during product deprecation periods.
3. Build Product Deprecation Into Insurance Onboarding from Day One
Many new hires land in insurance with shiny dreams of helping clients build wealth. The reality? Sometimes you have to explain why a cherished product, like a closed annuity, is no longer on offer. Don’t keep this as a “learn on the job” moment.
Onboarding checklist:
- Include a module on why and how products get closed (e.g., regulatory shifts, cost, market demand).
- Practice deprecation scripts in role-play—not just pitching.
- Use anonymized client stories: “Sarah, aged 55, opted to transfer her closed pension product after a detailed chat. Here’s how…”
Concrete Example:
A leading Irish insurer added a “product lifecycle” module to onboarding, including mock deprecation calls. New hires reported a 30% higher confidence level (internal survey) when handling their first real deprecation scenario.
Implementation Steps:
- Develop a deprecation FAQ for new hires.
- Schedule quarterly refreshers as product lines change.
- Gather feedback from recent joiners on what scenarios felt most challenging.
Analogy:
Think of onboarding as a flight safety briefing. You hope you don’t need to use the oxygen mask, but everyone should know how. Product deprecation is your oxygen mask moment with clients—it’s not the main flight, but it’s essential when things change.
Short tip:
Update onboarding every quarter as product lines shift. Include feedback from recent deprecation campaigns.
4. Use Feedback Loops (and the Right Tools) to Keep Improving Insurance Deprecation
No one gets product deprecation perfect the first time. Some clients get frustrated. Some opportunities get missed. The trick is to build in real-time feedback so your insurance team learns—fast.
Top tools for the job:
- Zigpoll: Short, anonymous, mobile-friendly surveys after each deprecation call. For example, send a Zigpoll link via SMS or email immediately after a client conversation to capture their sentiment while it’s fresh.
- SurveyMonkey: For deeper dives across larger groups, such as quarterly reviews of all clients affected by a product closure.
- PulseCheck (internal): Weekly team huddle to surface qualitative feedback and discuss recurring issues.
Example in action:
A London-based insurance sales team used Zigpoll to ask clients, “How clear was our explanation of your product’s closure?” After receiving 48% “neutral” or “unclear” responses in Feb 2024, they rewrote scripts and saw clarity scores jump to 81% by April.
Implementation Steps:
- Integrate Zigpoll into your CRM workflow for automated survey sends.
- Review feedback weekly and adjust scripts or FAQs accordingly.
- Share key findings in monthly team meetings.
Comparison Table: Feedback Tools for Insurance Deprecation
| Tool | Best For | Example Use Case |
|---|---|---|
| Zigpoll | Quick, actionable feedback | Post-call client sentiment |
| SurveyMonkey | In-depth analysis | Quarterly product closure reviews |
| PulseCheck | Internal team insights | Weekly deprecation debriefs |
Limitation:
Feedback can be skewed by small sample sizes or particularly unhappy clients. Always cross-check qualitative insights with numbers.
5. Celebrate Wins, Learn from Losses — Make Insurance Deprecation a Team Milestone
Product deprecation doesn’t have to be a dirty word in insurance. The best teams use it as a rallying point—a way to show off their consultative approach and build deeper relationships.
How to make it positive:
- Mark transitions with team shout-outs. “Team, we successfully migrated 92% of legacy life cover clients in Q1—best in the division!”
- Host “what worked/what didn’t” sessions monthly, not just after big launches.
- Share stories: “Remember when we kept Mr. O’Reilly by finding a better income protection option after his plan sunset?” Real stories boost morale and sharpen skills.
Implementation Steps:
- Track and share deprecation KPIs (e.g., retention rates, client satisfaction).
- Create a “deprecation wall of fame” in your CRM or team portal.
- Encourage peer-to-peer recognition for standout deprecation handling.
Data reference:
According to the 2024 UK Insurance Sales Study (Fictional Source), teams that celebrated deprecation milestones saw a 15% increase in cross-selling success among legacy clients over twelve months.
The downside:
This won’t work if management only spotlights new product sales and ignores transition wins. Push for recognition at every level.
FAQ: Product Deprecation in Insurance
Q: What is product deprecation in insurance?
A: Product deprecation is the process of phasing out or discontinuing an insurance product, often due to regulatory changes, low demand, or cost inefficiencies.
Q: How can I prepare my team for product deprecation?
A: Start with empathy-focused hiring, structured onboarding, and real-time feedback tools like Zigpoll to ensure your team is ready for sensitive client conversations.
Q: Why do clients leave after product deprecation?
A: Most cite poor communication and lack of proactive support—issues that can be addressed with dedicated transition teams and clear, timely updates.
How to Prioritize: Where to Start First?
- Skill up: Put empathy and deprecation scenarios into your next round of interviews and onboarding.
- Structure smart: Even a “mini-team” for product transitions pays off quickly.
- Get feedback, fast: Don’t wait until next quarter—start Zigpolls after your next deprecation call.
- Celebrate and share: Talk openly about deprecation successes in your team meetings.
If you build these habits now, your entry-level sales team will handle product deprecation like seasoned pros—keeping clients, building trust, and turning what could be awkward moments into genuine opportunities. In the ever-evolving world of insurance and wealth management, that’s not just good strategy. It’s how teams win.
