Oh my Word---rate Increases

[The Colonel]

"Your car is getting older and worth a bit less every year but the cost of parts and labor generally (along with everything else) tend to go up a little each year-it's called inflation. Your car may be a 2007, but we'll have to pay 2014 parts and labor prices to fix it today...."

 

[shawnmwalker]

Quick thought.

Usually prices jump dramatically in a state due to Hail or some significant losses sustained in the state. In CO we had a 500 million dollar hail storm and some wild fires that caused another 500 million in damage to homes. Every one in Douglas County got a new $15,000 roof for $1,000 deductible.

When you communicate with your clients monthly or quarterly via a mailer or email and prep them for the changes with industry and local news clippings you can mitigate the grumbling. Tell them to expect it. Tell them how much the industry lost last year and every year for the 30 years (Property).

Tell them you are here to mitigate it as an IA but to expect it.

 

[Cash]

I usually go into a collegiate level explanation of how inflation is actually a good thing and that if we lived in a world with deflation, we would all be screwed because no one would spend money. They would continually wait for prices to drop and the economy would crumble. After about 15 minutes into the explanation they politely say thanks and hang up. In fact I have the presentation recorded if you want to play it for your clients. Problem solved!

Which is why no one ever buys computers or cell phones.