Nationwide Will Fully Transition to Independent Agency Distribution Model by July 2020
Columbus, OH - As part of ongoing efforts to give agents the flexibility they need to grow and thrive, Nationwide is announcing its intention to shift entirely to an independent agency distribution model by July 1, 2020. The company is one of the largest carriers that currently sells products through both exclusive and independent agents.
Approximately 2,000 existing agents who have been operating under the Nationwide brand will have the opportunity to transition to an independent agency model between now and July 1, 2020. The company already has relationships with more than 10,000 independent agents across the United States.
Positioning agents, members and Nationwide for long-term success
“We don’t anticipate any changes for members. Agents will continue to serve members as they have in the past and still have access to Nationwide’s broad range of insurance and financial services products,” said Mark Berven, President & Chief Operating Officer of Nationwide Property & Casualty. “Nationwide is committed to offering members a distribution point that works best for them, while providing long-term growth opportunities for our agents.”
Nationwide will continue to offer direct-to-consumer options for members who choose to do business online or over the phone.
Benefits of moving to an independent model
Nationwide has been working to provide its exclusive agents with more flexibility and choice over the past several years. In moving to an independent model:
• Agents will maintain access to Nationwide’s breadth of products, while receiving more flexibility to use other carriers.• Agents will be better able to attract and retain commercial lines business – a segment predominantly served by independent agents.• Agents can access investment capital in their agencies over the long term and leverage it to drive growth.• Agent will receive control over succession planning and choice of what to do with policies at a future date.• Agents will enhance their long-term viability by diversifying their revenue streams and offering their clients access to industry expertise through multiple carriers.• Agents’ ability to acquire and integrate independent agencies will be near seamless.
Multiple options for consideration
Exclusive agents will have several options to transition to an independent contract by July 1, 2020. As agents transition, they may continue to work as a Nationwide agent and operate as they do today. Once transitioned, agents will be able to broaden their partnerships and the products they offer.
“We’re sharing our plans with agents now so they can have as much time as possible to review their options and plan for the transition,” Berven added. “Market dynamics, customer preferences and increased desire by exclusive agents for more flexibility make now the opportune time to move to a fully independent model. It will create a win-win for our distribution partners, and ultimately, our members.”
Nationwide, a Fortune 100 company based in Columbus, Ohio, is one of the largest and strongest diversified insurance and financial services organizations in the United States. Nationwide is rated A+ by both A.M. Best and Standard & Poor’s. An industry leader in driving customer-focused innovation, Nationwide provides a full range of insurance and financial services products including auto, business, homeowners, farm and life insurance; public and private sector retirement plans, annuities and mutual funds; excess & surplus, specialty and surety; pet, motorcycle and boat insurance. For more information, visit www.nationwide.com. Follow us on Facebook and Twitter.