Alyssa Lane
In 2018, Nationwide announced its intention to shift to an independent agency distribution model by July 1, 2020. This meant that around 2,000 existing agents operating under the Nationwide brand would have the opportunity to transition to an independent model. Nationwide has worked with independent agents since 1929 and has relationships with over 11,000 U.S. independent agents. The company's transition to an independent model was driven by a desire to provide agents with more choices and opportunities for long-term growth, as well as to meet the changing needs of distribution partners and consumers.
| Characteristics | Values |
|---|---|
| Date of announcement | 19 April 2018 |
| Date of completion | 1 July 2020 |
| Previous model | Exclusive and independent agents |
| New model | Independent agency distribution model |
| No. of existing agents at the time of announcement | 2,000 |
| No. of independent agents at the time of announcement | 10,000 |
| No. of formerly captive agents at the time of completion | 2,000 |
| % increase in new written premium driven by independent agents | 35% |
| No. of U.S. independent agents at the time of completion | 11,000 |
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What You'll Learn
Benefits of independent insurance agents
Independent insurance agents are not employed by any specific insurance agency. Instead, they represent multiple carriers and sell coverage from a variety of insurance companies. This means they can offer a broader range of insurance products to meet their customers' needs.
There are several benefits to working with an independent insurance agent. Firstly, they can save customers time by researching multiple policies and rates across several companies and presenting their clients with the best quotes. Independent agents can also help customers compare options across several carriers to find the right policy for their unique needs. This is especially useful for those with complex insurance needs, those who can't find coverage, or those with a poor driving record or other risk factors.
Another benefit of independent agents is that they often work with smaller insurance companies, which can be helpful if you're looking for coverage from a regional provider. They can also be useful if your homeowners' insurance costs have increased, or you've received a non-renewal notice. Local independent insurance agents are often familiar with insurers who write policies in your area.
There are no extra costs when working with an independent agent, as they make money through commissions when they sell a policy. Consumers don't pay anything to use their services.
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Nationwide's shift to an independent agency model
Nationwide Insurance, one of the nation's largest insurance providers, announced in 2018 that it would transition to an independent agency distribution model by July 1, 2020. This shift meant that the company's approximately 2,000 existing agents operating under the Nationwide brand would have the opportunity to become independent insurance agents. Independent insurance agents are not employed by any specific insurance agency and can sell insurance policies from multiple companies.
Nationwide's decision to transition to an independent agency model was likely influenced by market dynamics and the desire of agents to move away from traditional exclusive agencies. By making this change, Nationwide aimed to provide its agents with more choices and opportunities to grow their businesses. The company also wanted to offer its members a distribution channel that worked best for them while providing long-term growth opportunities for its agents.
To support its agents in this transition, Nationwide invested in technology and tools like Nationwide Express and the Commercial Digital Storefront. The company also expanded its suite of telematics, or usage-based insurance products, and provided resources and services to help agents build successful businesses and improve customer satisfaction.
The transition to an independent agency model was completed effective July 1, 2021, with over 99% of the company's formerly captive agents choosing to join Nationwide's independent agency channel. This change has resulted in a 35% increase in new written premium driven by independent agents, demonstrating the success of the shift to an independent agency model.
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Resources for independent insurance agents
As one of the nation's largest insurance providers, Nationwide offers a plethora of resources for independent insurance agents.
Firstly, Nationwide provides access to MyNSightOnline, a platform that offers a range of tools and resources for independent insurance agents. This includes commercial safety and risk management expertise, as well as cybersecurity and fraud guidance to protect digital information. MyNSightOnline also provides expert tips and information for farmers, ranchers, and agribusiness operators to navigate the agricultural landscape and maintain safe operations.
Additionally, Nationwide is committed to building strong and long-lasting relationships with its independent agents. They offer dedicated sales teams that partner with agents to design strategies tailored to their sales and retention goals. An agency council is also in place to address feedback and continuously improve their services to meet the needs of independent agents.
Furthermore, Nationwide provides resources for appointed independent insurance agents, guiding them through the process of becoming appointed with the company. They also offer quoting and sales tools, as well as a compassionate claims service to enhance customer satisfaction.
Outside of Nationwide, independent insurance agents can also find support and resources through organizations like The Big "I" (The Association for Independent Insurance Agents). The Big "I" offers a range of benefits, including marketing tools to help agencies stand out, advocacy on Capitol Hill and at the state level, and access to exclusive vendor deals. They also provide educational opportunities, such as the Insurance Growth Academy, which offers training sessions for insurance producers and agency leaders.
Overall, independent insurance agents have access to a variety of resources through their partnerships with companies like Nationwide and industry associations like The Big "I", enabling them to thrive in a competitive market while effectively serving their clients' needs.
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The impact on members
Nationwide members should not experience any changes as a result of the company's transition to an independent agency distribution model. Mark Berven, president and chief operating officer of Nationwide Property & Casualty, assured the public that the company is committed to offering members a distribution channel that works best for them, while providing long-term growth opportunities for their agents.
Nationwide has always worked with independent agents, with their Allied brand selling through independent agents, and the company has had relationships with more than 10,000 independent agents across the US. The transition to an independent model will not affect the services provided by Nationwide, and members will still have access to Nationwide's broad range of insurance and financial services products.
The company has invested in technology to help agents build their businesses, creating tools like Nationwide Express and the Commercial Digital Storefront. This will ultimately improve the customer experience, as agents will be able to provide faster and more efficient services. Members will also benefit from the expanded suite of telematics, or usage-based insurance products, including SmartRide and SmartMiles, as well as commercial lines telematics solutions.
In addition, the transition to an independent model will provide members with more options and flexibility when it comes to their insurance policies. By working with independent agents, members can research multiple policies and rates across several companies, instead of just one. This means that members can find the best policy for their unique needs and may be able to take advantage of discounts and coverage options that were not previously available to them.
Overall, the impact on Nationwide members as a result of the company's transition to an independent agency distribution model is expected to be minimal. Members will still have access to the same range of products and services, and the company remains committed to offering the best distribution channels for its members. The main impact will be positive, with members benefiting from improved technology, expanded product offerings, and increased flexibility and options when it comes to their insurance policies.
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The transition process
On April 16, 2018, Nationwide announced its intention to shift to an independent agency distribution model over the next two years. The company planned to shift entirely to the independent agency distribution model by July 1, 2020. Approximately 2,000 existing agents operating under the Nationwide brand had the opportunity to transition to an independent agency model during this period. However, the company did not initially provide specifics on what those options would be.
Nationwide has been committed to offering members a distribution channel that works best for them while providing long-term growth opportunities for their agents. The company has worked with independent agents since 1929 and already had relationships with more than 10,000 independent agents across the United States before the transition.
During the transition, Nationwide invested in technology to help agents build their businesses, creating tools like Nationwide Express and the Commercial Digital Storefront. They also expanded their suite of telematics, or usage-based insurance products, including SmartRide and SmartMiles, as well as commercial lines telematics solutions.
By the end of the transition period, more than 99% of the company's about 2,000 formerly captive agents had committed to joining Nationwide's independent agency channel and continuing their relationship with the company.
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Frequently asked questions
An independent insurance agent is not employed by any specific insurance agency. They can sell insurance policies from multiple companies.
Nationwide wanted to provide its exclusive agents with more choices so they could grow their businesses and be successful. The company also wanted to offer members a distribution channel that works best for them while providing long-term growth opportunities for their agents.
Nationwide announced its intention to shift to an independent agency distribution model in April 2018, and the transition was completed by July 1, 2020.
By working with an independent Nationwide agent, you can research multiple policies and rates across several companies instead of just one.
Nationwide has relationships with more than 11,000 independent agents across the United States.
