Agents Sue Nationwide

[Crabcake Johnny]

"Agents who agree to the new rules, which are articulated in a document called the "2010 Agent Choice Addendum," "will be given better commission rates on certain products and services than agents who do not sign and will also receive other forms of different treatment, but they will have to forfeit any further DCIC [retirement] benefits. Agents who refuse to sign can continue to accumulate DCIC benefits but will be denied the better rates and different treatment," according to the complaint.

Agents who want keep their current retirement-benefit model, and who don't sign up for the new arrangement, will be paid lower commissions for auto and property policies, and will be charged more for the servicing fee than those who accept the new model, the Association says."

Courthouse News Service

 

[Mark]

I still have that song stuck in my head.

Nationwide is on your side...

 

[BTFuzz]

Nationwide just always seemed to be a trainwreck for agents. We consistantly kick their a$$ in auto and home rates and have for a long time in our area.

I've met numerous Nationwide agents over the years and while very nice, they always are edgey and concerned about everything. I can see why....

 

[xrac]

"Agents who agree to the new rules, which are articulated in a document called the "2010 Agent Choice Addendum," "will be given better commission rates on certain products and services than agents who do not sign and will also receive other forms of different treatment, but they will have to forfeit any further DCIC [retirement] benefits. Agents who refuse to sign can continue to accumulate DCIC benefits but will be denied the better rates and different treatment," according to the complaint.

Agents who want keep their current retirement-benefit model, and who don't sign up for the new arrangement, will be paid lower commissions for auto and property policies, and will be charged more for the servicing fee than those who accept the new model, the Association says."

Courthouse News Service

This sounds similar to what Allstate did with their agents a few years ago.

 

[kman]

Why does it seem that the captive writers are always trying to impose such idocy upon their captive agents? They impose very difficult new business quotas regardless of their current rate structure and are always trying to remove older, established agents? They remove older agent's and then give the newer agent's the older agent's book...at a much lower commission structure. I've heard of horror stories for agent's working for Farmers, Allstate, American Family and Nationwide. It is widely known that many of the best independent agents got their start as captive agents that got sh*t on by a captive company. I think these captive companies ought to rethink their business plan on their aging agency force as they offer a great retention rate for their company, but once the agent is forced out by his captive company, his old book implodes and the customers leave because they liked their agent and NOT their insurance company!

 

[Bertolinoins]

Why does it seem that the captive writers are always trying to impose such idocy upon their captive agents? They impose very difficult new business quotas regardless of their current rate structure and are always trying to remove older, established agents? They remove older agent's and then give the newer agent's the older agent's book...at a much lower commission structure. I've heard of horror stories for agent's working for Farmers, Allstate, American Family and Nationwide. It is widely known that many of the best independent agents got their start as captive agents that got sh*t on by a captive company. I think these captive companies ought to rethink their business plan on their aging agency force as they offer a great retention rate for their company, but once the agent is forced out by his captive company, his old book implodes and the customers leave because they liked their agent and NOT their insurance company!

1. Because they can and it is profitable to do so.
2. Their retention rate on larger books is actually still pretty good after replacing an agent. Their $300M advertizing budget along with a fairly competent replacement agent allows them to keep 90+ % of renewals even if the agent is replaced. Most people are with a direct writer because of the carriers name...not the agent. This is because direct writers rarely have the best product. Sure, if it is a relatively new agent (less than 3-5 years) and many of the clients are friends and family... you will lose a lot of it. For an established agent with a large book, most of them stick.

 

[AndreaSti]

1. Because they can and it is profitable to do so.
2. Their retention rate on larger books is actually still pretty good after replacing an agent. Their $300M advertizing budget along with a fairly competent replacement agent allows them to keep 90+ % of renewals even if the agent is replaced. Most people are with a direct writer because of the carriers name...not the agent. This is because direct writers rarely have the best product. Sure, if it is a relatively new agent (less than 3-5 years) and many of the clients are friends and family... you will lose a lot of it. For an established agent with a large book, most of them stick.

As a health agent whose comp is getting axed, considered moving over to P&C but IDK, think I will just switch careers altogether. The question is, which career to switch to? After 25 years it's a tough question.

 

[b61mack]

nationwide is in your side pocket. i did attend one of their career day open houses. they bragged about hiring some of allstates mangement, makes you wonder what business mode they are taking. they have a big carrot with their training program. 80,000 in 2 years.. but you have to qualify!!!!!!!!!!!!!!

 

[xrac]

Jury Orders Nationwide to Pay $42.8M to Former Agent for Breach of Contract | PropertyCasualty360

 

[senior-advisor-indiana]

Damn, that's a hell of a payday.