- 5,804
Any one have thoughts on how the "new economy" will effect lapses?
- 19,035
My thoughts are the sky is not falling.
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- #3
- 5,804
I don't believe that either, but I do believe in economic principles, and our clients will make choices based on how their incomes are effected.
My prediction, for me at least, is that I will be running around more often attempting to conserve business that has NSF'ed. Wish gas wasn't so pricey.
- 25,038
For your 'typical' FE client?
The eagle still chit$ on the 1st and 15th.
Just like during the lock down devastated many small businesses and the working class. The poorest of the poor. FE market. Did not miss a check.
Correct but their cost of living has skyrocketed and was off since last yr . I drive 800 miles plus a week and my car gets 34 mpg . I’m spending $450 a month on gas . That’s about $2k more than a yr ago . I won’t take a level product contract under 130% as my costs rise .
- 25,038
Strong points.
Inflation - Yup, contrary to the DC spin. I am not seeing it as a good thing.
Gas - Yup again. However, that isn't going to play into lapses. I am mostly a phone guy so it does not affect me as an agent. As a road tripper, yeah. End of the month I am doing 1,100 mile trip up the north half of the PCH to Seattle. Then back.
Comp - Yeah, I can definitely see weighing comp stronger as a business owner.
Gas prices were higher 15 years ago than today.
I am concerned about inflation in general though, ever since Powell started calling it "transitory"
Everyone knew that was BS.
Chicken breast is now 15 bucks or so for the smallest package where I live. Supply chain issues are a real thing at this point and will impact certain peoples' decisions to buy policies.
I guess like most things, we'll have to wait and see. The good news is that increasing interest rates to stem inflation will help most of the insurance companies long term. That should lead to better rates for a lot of products, but it will take time.
I do believe our economy is still in good shape and like JD said, the sky is not falling.
I am concerned about inflation in general though, ever since Powell started calling it "transitory"
Everyone knew that was BS.
Chicken breast is now 15 bucks or so for the smallest package where I live. Supply chain issues are a real thing at this point and will impact certain peoples' decisions to buy policies.
I guess like most things, we'll have to wait and see. The good news is that increasing interest rates to stem inflation will help most of the insurance companies long term. That should lead to better rates for a lot of products, but it will take time.
I do believe our economy is still in good shape and like JD said, the sky is not falling.
- 25,038
I believe today's rates are going to be the lowest of the year. Let's see in 6 months
That is a number, like gas, that we regular people can understand. The cost to fill up, the cost to get a cart of groceries, the cost to buy some beer for the weekend.
For some reason, I am getting more inbound calls for policies this year than last year.
Let's hope. However, rate increases and decreases don't really seem to slow the buying of insurance. Maybe the amount. But from an Independent agent's viewpoint rate increases equals a raise to me.
Few people realize much of inflation is psychological. When you go out to eat and an item has risen 20% from last month , gas is up 50%, wood is up 50% then you say hell I have to raise my prices . It becomes a vicious loop as everybody keeps raising prices trying to outrun costs . Then you have supply side inflation with things like a lack of semis thus car prices have skied . But as said overall the economy is still strong .
- 25,038
Ditto
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