3 steps to build customer confidence despite inflation pressure
Inflation creates financial strain on its own. But it also fuels other specific operational challenges for farmers and agribusiness managers. And it all can cause a lot of anxiety among customers. But a few key steps can enable you to help knock down that anxiety and fuel customer confidence moving into the future.
As a Nationwide agency partner, you play a key role in helping customers overcome those challenges. It’s all about farm planning and smart risk management investment. You can enable your customers to not just survive but thrive despite the historic cost increases and financial hurdles they face. Construction, logistic and labor costs are all straining farm and agribusiness budgets, as well as the frequency of billion-dollar weather events since 2020. These cost variables call for specific attention to risk management planning, with your expert guidance.
No one relishes the idea of paying higher costs for anything. But your expertise and knowledge of your customers’ operations helps build confidence that their insurance dollars are well-spent and will meet their risk management needs as they navigate budget-straining inflation.
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Meet early, meet often
Creating open lines of communication with your customers is the first step in the process of navigating today’s financial landscape. Arriving at the right risk management strategy and farm insurance policies for some has long been a “set it and forget it” type of process. It historically has involved only an annual or biannual meeting. But with the rate of change in inflationary pressure today, that’s no longer the case.
By meeting more frequently with your customers, you can maintain a better understanding of their operations. Then you’re better equipped to identify their changing insurance needs when inflation surges things like machinery replacement costs, sometimes beyond previous coverage levels.
Present renewals well in advance
Those inflated replacement costs are a big reason to not just meet more frequently with customers but also present renewals well in advance. Doing so will enable your customers to plan for any increases in policy expenses and ensure they’ve got the right coverage levels in place.
Having to replace a large piece of farm machinery like a truck, tractor or combine is difficult enough. By presenting renewals early, you’re helping streamline the decision-making process. And you can ensure the right coverage levels are in place by answering some key questions in the process. Doing so will help you build customer confidence by eliminating some of the headaches of an already tough process.
Leverage specific tools to minimize inflation risk
Renewing insurance policies includes considering coverage options that may be new to your customers. Optional inflation guard coverage — also known as Construction Cost Adjustment — facilitates adjustment in replacement costs that account for any inflation-driven increases.
Inflation guard may not cover all additional costs. But it helps match each customer’s policy coverage to the most likely replacement cost scenario for a building or piece of equipment. It’s a valuable tool in helping your customers prevent inflation from eroding their farm revenue potential. Such a policy contributes to confidence that ultimately strengthens your role as a trusted partner to your customers.
Products underwritten by Nationwide Mutual Insurance Company and Affiliated Companies. Not all Nationwide affiliated companies are mutual companies, and not all Nationwide members are insured by a mutual company. Subject to underwriting guidelines, review and approval. Products and discounts not available to all persons in all states.