Selling insurance is important but challenging work. In acompetitive industry that’s changing rapidly, the obstacles aremany. But knowledge is power, as they say, so in RetirementAdvisor’s recent AdvisorSurvey we asked your peers to name these obstacles directly.The answers ran the gamut from specific product concerns to loominglegislation worries to straightforward sales hurdles that wouldresonate equally with those who sell houses or medical equipment ortax planning advice.

Following are the five obstacles that independent insuranceagents say are the most significant they’ll face this year, alongwith suggestions for how to meet them head-on.

1. Lead generation (50.59%)

Selling insurance products comes with its own unique set of leadgen challenges, not least among them the fact that prospects areeither a) reluctant to acknowledge they need what you’re selling,as is often the case with life insurance products or b) afraid toplan for one of their own looming obstacles, namely, how they willfund their retirement.

All of this is why, year after year, advisors name leadgeneration as the No. 1 issue that can make or break a practice. Ittakes creativity to break down this barrier, especially with thethreat of competition emerging from non-traditional channels. How to do it? The savviestadvisors are finding solutions that work naturally for theirpractice, whether it’s cornering an underserved niche market, finding readyreferrals through networking organizations orinvesting in technologies that will deliver more qualified leads in less time.

Play your cards right and you might find yourself sharing thissentiment, voiced by one of our survey respondents: “I have toomany leads and am having a difficult time finding the right personto hire to assist me.”

2. The economy (44.71%)

The U.S. economy is making baby strides back to full health, but we’restill nowhere near the flush years of the late ‘80s and ‘90s.Prospects must make calculated calls about how to invest theirmoney. There is also the fear factor: plenty of consumers arehesitant to trust financial advisors of all stripes, with insuranceadvisors on the low end of the spectrum. A recent Deloitte study revealed that just 20 percent ofconsumers believe banks to be highly trustworthy, while 14 percenthighly trust life insurers; 13 percent, annuity carriers; and 11percent, insurance agents and brokers.

The bad news, as the Deloitte survey shows, is that a few badapples can sour the image of an entire industry. It’s an unjustreputation, and one that needs fixing. The good news is thatguaranteed protection products have never been in moredemand, and no one is better equipped to offer theseproducts then agents and brokers. Your services are needed, whetheror not consumers overtly recognize it. As advisors becomeincreasingly holistic in the advice they give, consumers will startto realize an important truth: In a still-struggling economy,insurance products — and insurance producers — are more criticalthan ever.

3. Health care reform (35.29%)

The beast that reared its head in early 2010 with the signing ofthe Patient Protection andAffordable Care Act shows few signs of quieting fiveyears later. More than a year after the act was formally rolledout, consumers still have questions about their coverage options,fears over losing favored provider access and doubts that they canafford the level of coverage they need.

And that’s just on the consumer side. Advisors, too, must nownavigate a maze of ever-changing regulation in order to sell a productthat once was a whole lot simpler. To supplement sales, some agentsare turning to ancillary product lines like critical illness insurance — which, incidentally, isgood timing for consumers looking to fill coverage gaps. With tenthousand boomers retiring each day, others are finding the Medicaremarket an underserved niche, as a number of our survey respondentsnoted in a question asking for their success stories. Thesefindings suggest that specialization within a product line stillpays dividends.

4. Industry legislation (20.0%)

It’s been a busy few days in Washington, as anyone following theongoing debate over the DOL fiduciary standard willtell you. This piece of legislation — still in its drafting stage —is just one of the regulatory items awaiting resolution,effectively creating a waiting game for advisors. When resolutionwill actually come is anyone’s guess, but the prospect of tighterindustry regulation in coming years seems certain. And it’s onecertainty that leaves uncertainty in its wake. It’s difficult toplay when you don’t know the rules of the game.

Your clients may not face the same oversight concerns, but theyare none too pleased with the current state of governmentthemselves. When asked about the biggest fears clients are facing,forty-seven percent of survey respondents listed the government asa source of fear.

If there’s a silver lining here it’s that change always bringsopportunity. Stay on top of legislative moves, and your practicemay be well-positioned to outshine its competitors.

5. Cap rates on indexed annuities(20.0%)

Consumers want guarantees, yes, but they also want a strongreturn on investment. With cap rates very low in recent years,there is a growing sentiment among annuity prospects that beinglocked into a lower investment rate may save them money in theshort run but cause them to lose out in the long run. ChrisBartolotta, marketing content manager for M3 Financial,puts it this way: “While it’s mathematically unlikelythat sitting on cash earning less than one percent is a betteroption than earning some appreciable interest in an annuity, [thecap rate] remains a big sticking point for a lot of consumers.”

The good news is that consumers can have their cake and eat ittoo when it comes to these products, so long as they have areturn-of-premium (ROP) rider. This rider ensures that the clientwill never receive less than he or she put into the product (minusany withdrawals that have been made). If rates do rise, consumerscan remove their money, no questions asked, and reinvest the moneyelsewhere.