Nationwide books
- Thread starter Sam Adams
- Start date
Championpatriot
Expert
- 45
Hello Sam, that is a great question. I myself am an independent agent for a current exclusive Nationwide agency. I am waiting back on what the actual plans being offered to the agents are myself as I am unsure how this will change the agency structure...The following is complete speculation and I have not confirmed any of it to be fact. I have spoken to a few that I consider insiders or at least privy to some of this. Nationwide is going to offer the agencies a couple different options...
This one is complete speculation on my part.. I imagine one option is they will offer to pay out a lump sum for the book and the agent then forfeits the book to Nationwide entirely. Which if this is an option they give maybe Nationwide then offers that book for sale to an IA such as yourself...or they simply keep it on their direct side
Another option which I got wind of it being a real possibility is that Nationwide is going to offer a lump sum payment up front of some amount based on the current books value, then offer the now IA that built the book to buy the book at some X value. I imagine possibly Nationwide offers to finance the purchased book or maybe they simply want the IA to get financing elsewhere. Not sure.
I would be very interested to know what others know or simply their thoughts on what this process might look like. I myself have a huge stake in this as I have been a 100% commission 1099 agent for some time.
Also just a side note to add to this and again 100% speculation , is Nationwide doing this because of the recent court ruling against American Family? .... I mean I know that the exclusive agency model seems to be unsustainable for the long term considering how the IA market and the likes of Geico, Esurance progressive etc have disrupted the market.
This one is complete speculation on my part.. I imagine one option is they will offer to pay out a lump sum for the book and the agent then forfeits the book to Nationwide entirely. Which if this is an option they give maybe Nationwide then offers that book for sale to an IA such as yourself...or they simply keep it on their direct side
Another option which I got wind of it being a real possibility is that Nationwide is going to offer a lump sum payment up front of some amount based on the current books value, then offer the now IA that built the book to buy the book at some X value. I imagine possibly Nationwide offers to finance the purchased book or maybe they simply want the IA to get financing elsewhere. Not sure.
I would be very interested to know what others know or simply their thoughts on what this process might look like. I myself have a huge stake in this as I have been a 100% commission 1099 agent for some time.
Also just a side note to add to this and again 100% speculation , is Nationwide doing this because of the recent court ruling against American Family? .... I mean I know that the exclusive agency model seems to be unsustainable for the long term considering how the IA market and the likes of Geico, Esurance progressive etc have disrupted the market.
- 694
@Championpatriot any rules or guidelines released on using wholesalers?
NCAgent828
Super Genius
- 193
I read an article and also sat at the round table with a Nationwide rep recently at a conference. Their feedback was they are offering the option to allow the agency’s to be independent and use additional options and some may sell their agencies. Sounded like they still have same ownership as currently and some may sell to other IA.
I may be wrong on this and she may not have been upfront about the fine print but sounded like it wasn’t a huge deal beside the structure change.
I for one and excited of the possibility to purchase a solid Nationwide book.
I may be wrong on this and she may not have been upfront about the fine print but sounded like it wasn’t a huge deal beside the structure change.
I for one and excited of the possibility to purchase a solid Nationwide book.
Championpatriot
Expert
- 45
Eugene , I have not heard of any such rule or guideline, I do not think they will have the ability to do such. I know quite a bit now on what the available options for agents are now. In regards to the whosesalers I think once they choose and accept the particular offer (there are three that I know of) and once they are independent they get with any wholesaler. The kicker is they are going to restrict moving the books, for example if all the sudden a huge percentage of the book is written off to another company this is a big no no.
- 694
Thanks Champion, very interesting.
