Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

ACB Recruiting Presentation 07272009

1,899 views

Published on

New agent opportunities at Nationwide

  • Be the first to comment

ACB Recruiting Presentation 07272009

  1. 1. Nationwide® Agency Capital Builder (ACB) Employee Agent Program Nationwide Insurance 2009 CONFIDENTIAL AND PROPRIETARY 1 MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party.
  2. 2. Why Nationwide®? • Industry Leader – Ranked #108 on the 2008 Fortune 500 list – 4th largest homeowner insurer and 6th largest auto insurer based on premiums written1 – 6th largest total property and casualty insurer – Nationwide Agribusiness largest farm insurer based on premiums written2 – Multi-line company with wide array of products and services • Stability – In business since 19253 – more than 80 years – More than 16 million policies in force – $157 billion in statutory assets – 36,000+ Nationwide employees • Brand Recognition – National On Your Side and Life Comes at You Fast Ad campaigns • Community Giving – Corporate sponsorship for variety of charitable causes, including Children's Hospital, United Way and Disaster Relief – Ongoing support for workplace giving and Nationwide associates volunteer network 1 Source: A.M. Best, 2005 Direct Written Premium (DWP) 2 Source: A.M. Best, 2007 Direct Written Premium (DWP) 3 Established as Ohio Farm Bureau in 1925, name changed to Nationwide in 1943 CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 2 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 2
  3. 3. What does Nationwide value? Nationwide’s Core and Performance Values and the behaviors that support them are the cornerstone of our success Core Values We Value People We Act with Honesty and Integrity • Takes time to develop productive relationships with others. • Acts w ith integrity, honesty and fairness. • Makes others feel valued and respected. • Adheres to highly ethical standards of business • Values the diversity of talents, skills and experience of conduct. individual team members. • Takes actions that are consistent w ith w ords. • Supports an individual’s personal and professional • Speaks up constructively w hen s/he f eels something is development. not right. • Demonstrates an appreciation for balance between We Trust and Respect Each Other peoples’ work and personal lives. • Inspires trust through his/her actions. We Are Customer Focused • Treats others w ith respect. • Anticipates, understands and acts on clear customer • Listens to others for understanding. needs. • Talks directly to an individual w hen there is a concern or • Is flexible and innovative in achieving results for problem. customers. • Maintains confidentiality. • Seeks and responds to customer feedback. • Respects, encourages and values others' points of • Focuses on new and better ways to create value for the view . customer (ease, access, customization). CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 3 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 3
  4. 4. What does Nationwide value? Performance Values We Have a Bias for Action and a Passion for Results We Work as One Team • Show s initiative to solve problems and improve, • Acts for the benefit of the company regardless of advance or enhance the business. business unit or self-interest. • Anticipates situations and initiates action. • Promotes teamw ork among groups; discourages “w e vs. they” thinking. • Establishes specific strategies and objectives to • Involves others in decisions and plans that affect them. achieve results and meet goals. • Listens to input from teammates to reach the • Displays a sense of urgency in creating results. best solution. We Act Accountably • Supports team decisions in w ords and deeds. • Accepts personal responsibility for his/her actions, and • Asks for and offers support freely. those of the team. We Have Fun • Displays a “can-do” attitude and commitment to success. • Acknow ledges and celebrates success. • Has fun along the w ay and encourages others to do the • Focuses on finding solutions w hen faced w ith problems. same. • Leads an accountable organization by example in • Maintains a healthy perspective in difficult situations. w ords and deeds. • Creates enthusiasm for assignments and achieving We Value Coaching and Feedback goals. • Recognizes, rew ards and reinforces good performance. • Coaches others by giving useful constructive feedback. • Invests time and effort in the development and training of others. • Asks for feedback and coaching. CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 4 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 4
  5. 5. Agency Capital Builder: Types • ACB, Scratch Metro – $50,000 target annual compensation – $50,000 target Capital Fund – $15,000–$45,000 Successful Agent Bonus – Nationwide provided location – multi-agent or single location • ACB, Seed Metro – $50,000 target annual compensation – $25,000 target Capital Fund* – $15,000–$45,000 Successful Agent Bonus – Nationwide provided location – single location • ACB, Scratch or Seed Rural (less than 600 households per square mile) – $40,000 target annual compensation – $15,000 target Capital Fund – $10,000–$30,000 Successful Agent Bonus – Nationwide provided location – single location * If the seed book size in an ACB Metro is less than $1MM, the capital fund will be $50,000. If the book size is over $1MM, the capital fund will be $25,000. CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 5 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 5
  6. 6. Introduction to the ACB Agent Program: Company Provided Assistance Overview (18–24 months): • Work from a Nationwide-branded storefront location and Nationwide covers the cost of the lease, utilities/maintenance, technology, office supplies and a sales support position (as necessary) • Base compensation with the opportunity to earn variable compensation (overtime eligible during first 3 months training phase–variable compensation paid based on your personal performance and pre-determined payout rate) • Thorough step-by-step training and development program to prepare you for selling, managing and running a Nationwide insurance agency • Marketing support including direct mail support, lead generation tools and allocation of funds for local marketing expenses • Company-provided BlackBerry for business use and agent-specific toll-free number • Travel expenses associated with training and development classes • Benefits credit of $276 a month ($3,600 annually) will be provided and may be used toward personal insurance needs or required Errors & Omissions coverage (benefits coverage does not begin until after the first 30 days of continuous service) • ACB agent will receive company-paid time off of 5 days per calendar year and all company-paid holidays • Opportunity to access additional capital 1 of up to $95,000 based on months in the program and eligibility to transition to an available agent program (Capital Fund/Successful Agency Bonus) 1 PLEASE NOTE: These additional capital opportunities are based on successf ul completion of the ACB contract and acceptance into a subsequent successor program as approv ed by Nationwide and the Regional Vice President. CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 6 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 6
  7. 7. Agency Capital Builder: Why You? Employment Requirements Preferences • Capital: Minimum $10,000 liquid capital and positive • Work Experience: 3–5 years experience; preferably in net worth the insurance, financial, retail, banking or sales industry • Licenses: Active and valid Property, Casualty, Life and • Licenses: Variable product registration Health licenses • Technical: Proficient in PC Windows and Microsoft • Background Check: Satisfactory results of background Office assessment using consumer reports designated by • Education: Bachelor's degree in Insurance, Business, Nationwide Finance, Marketing or related discipline preferred • Pre-employment Drug Screen: Negative drug screen for • Know ledge: Demonstrated knowledge and success in controlled substances within 48 hours of receiving a Sales. Understand basic small business processes and verbal employment offer administration • United States Employment Eligibility: Satisfactory proof • Skills: Organizational, administrative, interpersonal, of eligibility to work in the United States leadership, marketing, selling and relationship skills • Testing: Caliper • Approv al: Regional Vice President approval Expectations Competencies • Hours; expected to work evenings and weekends • Overnight travel will be required for training and • Customer Focus development • Creativity • Active prospecting; building a Nationwide portfolio of • Innovative business (can’t rely solely or primarily on foot traffic) • Interpersonal Savvy • Ability to access additional capital upon successful completion of the ACB employee agent agreement in • Drive for Results order to meet financial and fiduciary requirements of a • Business Acumen successor program • Entrepreneurial Spirit CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 7 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 7
  8. 8. Introduction to the ACB agent program: Step 1: Mutual Selection Process – Is this right for both of us? Step 2: ACB Agent Trainee On-boarding and Initial training Step 3: ACB Agent Agency and operations development CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 8 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 8
  9. 9. What Should You Expect? Step Detail Forms Initial Interview Process •Initial Interv iew with Human Resources or Agency •Conf identiality and Non-Disclosure Agreement Dev elopment Sales Manager/Sales Manager (ADSM/SM) Background •Sign Background Inv estigation f orm and complete •Signed Background Inv estigation Form Investigation Background Inv estigation online •Personal Financial Statement Template •Personal Financial Statement (to be turned in at •Variable License U4 Prescreen Form (if applicable) Meeting with Senior Field Sales Management) In-Depth Interview •Meet with ADSM/SM •Pre-Employ ment Forms including: Pre-employ ment drug •Sign Pre-Employ ment Forms screening notice, consent to conduct background search, Fair Credit Reporting Act Notice and certif ication that inf ormation on application is correct Aptitude Test Assessment •Complete Aptitude Test Assessment •A link to the Caliper testing site will be sent to perf orm the test Job Preview/Agent •Visit selected Nationwide Agency •Job Prev iew Form Office Visit •Work with ADSM/SM in making cold calls to obtain 50 personal line leads and 25 business leads •Licensing Requirement Discussion with ADSM/SM Meeting with Senior •Candidate prov ides ADSM/SM with completed •Completed Personal Financial Statement demonstrating a Field Sales Leadership Personal Financial Statement prior to meeting with positiv e net worth and liquid assets of a minimum of $10,000 Senior Field Sales Leadership •Meet with Senior Field Sales Leadership Conditional Offer/Draft •Pending approv al of candidate, candidate receiv es a •Draf t Conditional Of f er Packet – Recommend the ACB Offer Packet conditional of f er packet and letter agent rev iew agreement terms prior to accepting the position •Drug Screen must be completed within 48 hours and signing the agreement •The agreement is non-negotiable •Take drug test within 48 hours of v erbal of f er Verification of Required •Field Sales v erif ies that candidate has obtained •Prov ide copy of current and v alid Property & Casualty License required licenses license as well as Lif e & Health license Final Employee/Agent •ADSM/SM meets with candidate to sign agreement •Sign f inal agreement – Receiv e the Training and Agreement Signing Dev elopment Guide, scheduled into f irst ACB agent workshop in Columbus, OH within f irst month of employ ment CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 9 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 9
  10. 10. Agency Capital Builder: Compensation Overview Total target compensation ($50,000) adjusted geographically to the market ACB Agent Trainee Phase ACB Agent Post-Trainee Phase (first 3 months) (4-24 months) • Annual base salary ($30,000) adjusted • Annual base salary continues to be paid geographically to the market (bi-weekly) • Annual base salary is paid bi-weekly • No longer eligible for overtime1 • Taxes are withheld based on personal • Target annual variable compensation is an income tax bracket additional $20,000 or more based on • Eligible for overtime compensation during performance (Property & Casualty and Life Sales the first 3 months of employment (1.5 x combined) base hourly rate for hours over 40 in same • Variable compensation is earned monthly based week) on personal Property & Casualty (P&C) production (after first 3 months from production date) • *Receive commission on financial products sold (based on type of product and company sold through) • *Brokerage products sold through Insurance Intermediaries, Inc. (III) – Subsidiary for general agency products when Nationwide product is not available – Entire network is not available – Only able to access when products are not provided by Nationwide 1 Except in CA where employ ee agents are still eligible to receiv e ov ertime *Please note that not all products sold will count towards required objectives including brokerage business. CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 10 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 10
  11. 11. Agency Capital Builder: Variable Compensation Profile Award Mechanics: • Variable compensation is earned monthly after first 90 days from production effective date • Variable compensation is paid monthly (approximately 60 day lag with first payment) * Begin earning in month 4 of production * Calculated in month 5 * Payment for month 4 earnings received in month 6 • Monthly award is calculated on the respective monthly net new policy sales, not program to date PIF • Lesser of the two (% of 12MM DWP and PIF) determines the monthly award amount % of 12MM DWP and PIF Plan* < 50.0% 50.0 - 99.9% 100.0 - 125.0% > 125.0% YEAR 1: Amount per $0 $75 $85 $100 Monthly Net New Sales: YEAR 2: Amount per $0 $60 $70 $85 Monthly Net New Sales: For example: • % of 12MM DWP is 60% ($75) and % of PIF Plan is 110% ($85) • Monthly net new sales is 13 in month 4 • Lower of the two is $75 • $75 x 13 = $975 variable compensation payment earned in month 4 * These numbers are example purposes. Actual monthly bonus compensation profile may differ. CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 11 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 11
  12. 12. Agency Capital Builder: Capitalization Month Plan is Bonus Paid Bonus Paid • Successful Agency Bonus: completed (ACB Metro) (ACB Rural) – After you transition to a program IC model, a successful agent bonus will be paid 18 $45,000 $30,000 – Paid upon the signing of the successor 19 $40,000 $26,500 agreement 20 $35,000 $23,200 – One lump sum payment – Issued 45–60 days after IC contract 21 $30,000 $19,900 is signed 22 $25,000 $16,600 – Can be considered part of liquid 23 $20,000 $13,300 assets needed when transition to IC 24 $15,000 $10,000 • Capital Fund Program: * If the seed book size in an ACB Metro is – A maximum of $50,000 (geographically adjusted) less than $1MM, the capital fund w ill be $50,000. If the book size is ov er $1MM, the • $50,000 ACB Scratch Metro capital fund w ill be $25,000. • $25,000 ACB Seed Metro* • $15,000 ACB Scratch or Seed Rural – One lump sum payment – Issued 45–60 days after IC contract is signed – Can be considered part of liquid assets needed when transition to IC CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 12 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 12
  13. 13. Agency Capital Builder: Awards and Recognition The Awards and Recognition Program is a non-cash incentive program for agents based on their performance Presidents Conference • Eligible based on Career Agent conference qualification criteria Conference of Champions • Eligible based on performance against plan – Percentage Production Plan attainment requirement—greater than or equal to 130.0% Direct Written Premium (DWP), Policies in Force (PIF) and Life Production Plan attainment – All Program Agents must be in the position for nine months or longer in the performance year to be eligible for conference attendance under this criteria CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 13 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 13
  14. 14. Agency Capital Builder: Expenses paid by Nationwide • Location expenses: – Location lease – Utilities and phone – BlackBerry and wireless card – Office furniture, equipment and supplies – Computer, printer, fax, copier and telephone system – Other reasonable and necessary expenses approved by the company • Additional expenses that may be covered or reimbursed: – Travel, lodging and meal expenses while traveling for required training and development classes – Licenses renewal or registration expenses – Annual dues for professional affiliation – Other appropriate business-related expenses as approved by manager ACB must return laptop to Nationwide upon termination of the ACB contract or transition to independent contractor program. All expenses from BlackBerry and wireless card will be agent’s responsibility if transition to IC program. CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 14 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 14
  15. 15. Agency Capital Builder: Training & Development • Initial training class: – 10 days long including Saturday* Morning from 8AM to Noon (requires a weekend stay at the Nationwide Sales Training Center in Columbus, Ohio) – Needs to be scheduled the first few weeks of employment – Includes in-depth education on: • Products • Sales and service – Sales ideas – Customer Experience – Selling skills workshop – Prospecting – Actual cold calls (Commercial leads only) • Underwriting and systems • Agency planning and administration • Continuing education/training – Additional training courses need to be completed in order to satisfy the training requirements outlined in the contract – The training and development grid is a guideline or recommendation of when these courses should be completed. However, you can attend training earlier with your region’s approval. *All time over 40 hours in the first 3 months is eligible for overtime pay including time in training. CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 15 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 15
  16. 16. Agency Capital Builder: Training & Development Month 1 Month 2 Month 3 Month 4 Training and Business Training and Business Training and Business Training and Business Dev elopment Dev elopment Dev elopment Dev elopment Principal Agent Workshop (2 weeks) •Attend Webinar 1 •Attend Webinar 2 •Attend Webinar 3 •Product, Sales (CEI) and Systems •Dev elop Serv ice Center/ •Dev elop relationship and of f ice –Explain Features/benefits of Auto, Underwriter relationship claims processes with Claims Property, Life and Commercial Marketing and (Business Auto/Businessowners) Prospecting Activ ities partners –Use 4-Step sales process (5 Moments Marketing and •Continue Prospecting and of Truth) and CEI POS worksheet to Marketing and prepare a proposal Prospecting Activ ities Marketing Processes with ADSM –Offer or quote multiple products based •Continue Prospecting and Prospecting Activ ities on the need Marketing activ ities with ADSM •Continue Prospecting and –Correctly prepare and release a quote on Sales Activ ities Marketing activ ities appropriate system •Continue Sales Activ ities •Agency Management Sales Activ ities with ADSM –Understand Business and Marketing Plans •Continue Sales Activ ities Sales Activ ities –Use the tools found within the Proforma to with ADSM •Continue Sales Activ ities perform “what if scenarios related to agency activities. –Agency reports and what they represent Quarterly Progress Assessment –Staffing the agency –Agency operations Marketing and Prospecting Activ ities •Implement Prospecting and Marketing Processes with ADSM Sales Activ ities •Implement Sales Activ ities with ADSM CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 16 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 16
  17. 17. Agency Capital Builder: Training & Development Month 5 Month 6 Month 7 Month 8 Training and Business Development Training and Business Development Training and Business Training and Business •Attend Webinar 4 •Attend Webinar 5 Development Development • Eastern/PCIO/Western Commercial •Attend Webinar 6 •Ongoing with ADSM Workshop (4–5 days depending on Region) Marketing and Prospecting Activities –Priority One Commercial Sales Process •Continue Prospecting and Marketing activities Marketing and Prospecting Marketing and Prospecting –Business-owners Eligibility and Features and Benefits with ADSM Activities Activities –Commercial Package Policy Eligibility and Features •Continue Prospecting and •Continue Prospecting and Marketing and Benefits Sales Activities Marketing activities activities –Business Auto Eligibility, Classification, Features •Continue Sales Activities with ADSM and Benefits Sales Activities Sales Activities –Artisan Contractors Eligibility and Features and Benefits •Continue Sales Activities •Continue Sales Activities (NI Commercial only) –Resource Navigation Quarterly Progress Quarterly Progress Assessment –Policy Servicing Assessment Marketing and Prospecting Activities •Continue Prospecting and Marketing Activities Sales Activities •Continue Sales Activities Month 9 Month 10 Month 11 Month 12 Training and Business Development Training and Business Development Training and Business Training and Business •Ongoing with ADSM •Basic Life Workshop (3 days) Development Development –Analyze client needs •Ongoing with ADSM •Ongoing with ADSM Marketing and Prospecting Activities –Present recommendations and make •Continue Prospecting and the sale Marketing and Prospecting Marketing and Prospecting Marketing Activities –Learn features and benefits of Term, Activities Activities Whole Life and Universal Life product •Continue Prospecting and •Continue Prospecting and Marketing Sales Activities –Supporting Systems Marketing activities activities •Continue Sales Activities Marketing and Prospecting Activities Sales Activities Sales Activities •Continue Prospecting and Marketing activities •Continue Sales Activities •Continue Sales Activities with ADSM Sales Activities •Continue Sales Activities with ADSM CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 17 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 17
  18. 18. Agency Capital Builder: Training & Development Year 2—Agency Capital Builder Program Month 13 Month 14 Month 15 Month 16 Training and Business Development Training and Business Development Training and Business Development Training and Business Development •Ongoing with ADSM •Ongoing with ADSM •Ongoing with ADSM •Ongoing with ADSM •Business Plan Training and •Business Plan Training and Development •Business Plan Training and •Business Plan Training and Development Development Development Marketing and Prospecting Activities Marketing and Prospecting Activities Marketing and Prospecting •Continue Prospecting and Marketing and Prospecting •Continue Prospecting and Activities Activities Marketing Activities Marketing Activities •Continue Prospecting and •Continue Prospecting and Marketing Activities Sales Activities Marketing Activities Sales Activities •Continue Sales Activities •Continue Sales Activities Sales Activities Sales Activities •Continue Sales Activities •Continue Sales Activities Quarterly Progress Assessment Quarterly Progress Assessment Month 17 Month 18* Month 19* Month 20* Training and Business Development Training and Business Development Training and Business Development Training and Business Development •Ongoing with ADSM •Ongoing with ADSM •Ongoing with ADSM •Ongoing with ADSM •Business Plan Training and •Business Plan Training and Development •Business Plan Training and •Business Plan Training and Development Development •Advanced Principal Agent Workshop Development –Under development Marketing and Prospecting Activities Marketing and Prospecting Marketing and Prospecting •Continue Prospecting and Activities •Plan for Phase II Office Activities Marketing Activities •Continue Prospecting and •Begin analysis for agency site location •Continue Prospecting and Marketing Activities and approval Marketing Activities Sales Activities •Continue Sales Activities Sales Activities Marketing and Prospecting Activities Sales Activities •Continue Sales Activities •Continue Prospecting and •Continue Sales Activities Marketing Activities Quarterly Progress Assessment Sales Activities Quarterly Progress Assessment •Continue Sales Activities CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 18 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 18
  19. 19. Agency Capital Builder: Marketing Support • Receive Nationwide dedicated marketing support such as: – National marketing direct mail – National cable advertising – National marketing campaigns • Additional assistance with lead generation and prospecting tools • Suggested marketing program to assist with achieving production goals • Individual marketing fund to support individual marketing plans (plan must be in writing and approved by Agency Development Sales Managers and Sales Managers and Regional Marketing Director) – Local marketing budget • Supports business cards, newspaper ads, loyalty program, thank you notes – Central marketing budget each year • Required co-op program participation • Marketing plan outlines recommended touch points • Supports prospecting or lead generation direct mail and general advertising and public relations • Specific new agent marketing materials available to order from Marketing Storefront CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 19 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 19
  20. 20. Agency Capital Builder: Marketing Plan Components PCIO-Initiated Activity • Advertising (877ONYOURSIDE, Nationwide.com and Agency Locator Option) • Mail (Agent(s), 877ONYOURSIDE, and Nationwide.com) • Retail/Merchandising (Agent Level Marketing) Agent-Initiated Activity Work with manager to (All focus on driving traffic to Agent locations) establish sales process • PCIO lead generation • General advertising • Public relations • Prospecting (personal & commercial Lines) • Community activation • Centers of influence activation • Agent lead generation & follow up • Develop and market to affinity groups • Existing client management activities CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 20 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 20
  21. 21. Agency Capital Builder: Additional Support Access to dedicated market-specific support staff: • Agency Development Sales Manager or Sales Manager (based on Regional staffing) • Sales Support Staff: – one Insurance Services Specialist hired per shared storefront location • Technical Trainers • Financial Services Specialists CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 21 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 21
  22. 22. Insurance Services Specialist (ISS) • Position will support the ACB shared storefront locations and ACB agents – Does not act as a primary sales person – Must have active and valid property/casualty and life/health licenses – Can cross-sell and up-sell policies when they are speaking to your policyholders – Set-up as an associate producer number for each ACB agent so you will receive credit for any production ISS writes under your producer number • Will be a full-time traditional Nationwide employee – Hired and Managed by ADSM/SM (you will not need to hire or supervise) CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 22 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 22
  23. 23. Agency Capital Builder: Performance Management • You will have MBOs (Managed Business Objectives) for production requirements and Nationwide values • You will have monthly review sessions (regardless of performance) with managers and quarterly review sessions with the regional leadership • Your performance will be measured in four areas: – Obtainment of monthly and cumulative performance objectives – Achieving established MBOs – Complying with reporting and tracking requirements – Completion of training, development and marketing plans • You must be on target for all required objectives each month – Month one production requirements align with production effective month – Any business written prior to production effective date will not count towards the obtainment of your required objectives • Performance management program is a monthly progressive policy that provides coaching, administrative action, and possibly termination (if the coached deficiency is not corrected by the Nationwide and program guidelines)1 • Performance management objectives at a regional level still apply 1 For details, please ref er to the ACB employ ee/agent agreement CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 23 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 23
  24. 24. Agency Capital Builder: Production Requirements • We care about your success. You will work directly with your manager to assist you in meeting three key performance measurements: – Policies in Force (PIF) – Direct Written Premium (DWP) – Financial product sales (life sales) • You will be managed to the PIF and 12 month-moving DWP requirements. Monthly net sales are also provided for reference. – Any seed portfolio is tracked separately and is not counted towards the agent’s production requirements – P&C production is measured on PIF at a total policy level (not specific to product requirements) • Life sales requirements are NOT cumulative through the program and must be met per program year. Sales are tracked monthly until the total required number is achieved. • Financial services production requirements can be met with fixed and variable products (if have variable license). Life production requirements begin in month 4 and are based on paid and delivered sales. • DWP will be based on your market specific historical geographic average premium (which is an average of all P&C product premiums) multiplied by the PIF requirement CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 24 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 24
  25. 25. Agency Capital Builder: Production Requirements • Production requirements for Property & Casualty PIF and DWP will be provided for you at an annual, quarterly and monthly level • You will be managed to the planned to-date production • Financial Services will be paid at Tier III (approximately 65%) commission on first year premium up to target (and may be higher depending on personal results) • There will be limited binding authority for the first 90 days of employment and business written outside of the limited binding authority recommendation must have Sales Manager or Agency Development Sales Manager approval prior to submission to the processing area *agents who hold a variable registration and may be placed on the broker dealer (NSI) platform which administers a different tier system and maintains a separate reporting environment CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 25 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 25
  26. 26. Agency Capital Builder: Minimum Production Requirements Production Chart (total Policies in Force (PIF)): • Minimum PIF requirements are the same for all ACB agents ACB PRODUCTION REQUIREMENTS • Measured against PIF PIF Yearly Production YR1 YR2 • New Sales are shown as guidelines to help PIF PIF get to required PIF Total New 179 240 • If retention slips, recommended new sales will need to increase to achieve required PIF Total IF (Policies) 171 368 New Life Sales 9 18 • Lower retention requires higher monthly new sales Monthly New Sales (Follows Exhibit B of ACB Contract) Production Month 1 2 3 4 5 6 7 8 9 10 11 12 Total New Sales Total PIF Net New Policies 3 9 9 11 14 17 18 19 19 20 20 20 179 Total PIF 3 12 21 32 46 63 81 99 117 134 152 171 171 New Life Sales 0 0 0 1 1 1 1 1 1 1 1 1 9 Production Month 13 14 15 16 17 18 19 20 21 22 23 24 Total New Sales Total PIF Net New Policies 20 20 20 20 20 20 20 20 20 20 20 20 240 Total PIF 189 207 226 244 261 278 294 309 325 340 354 368 368 New Life Sales 2 1 2 1 2 1 2 1 2 1 2 1 18 TOTAL PIF REQUIRED 368 FOR COMPLETION CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 26 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 26
  27. 27. Agency Capital Builder: Minimum Production Requirements • Life sales requirements are NOT cumulative • For example, if you sell 25 in the first year when the requirement is only 9, you have an excess of 16 life sales • You still need to have at least 18 life sales the following year to meet minimum life sales requirement Monthly New Sales (Follows Exhibit B of ACB Contract) Production Month 1 2 3 4 5 6 7 8 9 10 11 12 Total New Sales Total PIF Net New Policies 3 9 9 11 14 17 18 19 19 20 20 20 179 Total PIF 3 12 21 32 46 63 81 99 117 134 152 171 171 New Life Sales 0 0 0 1 1 1 1 1 1 1 1 1 9 Production Month 13 14 15 16 17 18 19 20 21 22 23 24 Total New Sales Total PIF Net New Policies 20 20 20 20 20 20 20 20 20 20 20 20 240 Total PIF 189 207 226 244 261 278 294 309 325 340 354 368 368 New Life Sales 2 1 2 1 2 1 2 1 2 1 2 1 18 TOTAL PIF REQUIRED 368 FOR COMPLETION CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 27 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 27
  28. 28. Agency Capital Builder: Minimum Production Requirements • Direct Written Premium (DWP) requirements are geographically set based on the most current pricing of written business specific to that location’s county (first term average DWP for all lines of business) • May need to write more policies or change mix of business in order to hit required DWP • DWP requirements will vary by ACB agent unless target market is in the same county • Standard Auto assumes 1.6 vehicles per policy • Non-Standard Auto assumes 1.4 vehicles per policy ACB Minimum Production Requirements DWP YEARLY PRODUCTION YR1 YR2 Production Plan is for illustrative purposes only. DWP DWP TOTAL 12MM DWP $ 128,028 $ 330,576 The issued contract determines actual requirements. Example of Minimum DWP Production Requirements Production Month 1 2 3 4 5 6 7 8 9 10 11 12 Monthly DWP $ 2,192 $ 5,163 $ 5,163 $ 6,084 $ 9,114 $ 10,036 $ 12,088 $ 15,627 $ 15,628 $ 13,677 $ 16,628 $ 16,628 12MM DWP $ 2,192 $ 7,355 $ 12,518 $ 18,602 $ 27,716 $ 37,752 $ 49,840 $ 65,467 $ 81,095 $ 94,772 $ 111,400 $ 128,028 Production Month 13 14 15 16 17 18 19 20 21 22 23 24 Monthly DWP $ 18,645 $ 18,274 $ 18,273 $ 18,283 $ 16,927 $ 16,936 $ 16,707 $ 16,046 $ 16,046 $ 16,321 $ 15,045 $ 15,045 12MM DWP $ 146,673 $ 164,947 $ 183,220 $ 201,503 $ 218,430 $ 235,366 $ 252,073 $ 268,119 $ 284,165 $ 300,486 $ 315,531 $ 330,576 CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 28 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 28
  29. 29. Agency Capital Builder: Transition Requirements • To complete the Agency Capital Builder agreement, you must achieve: – 100% of your total DWP plan AND – 95% of your PIF plan AND – 100% of your financial objective (life sales) AND – Meet all training and development requirements AND – Meet all financial and fiduciary requirements and meet regional profitability target – Can transition from program after 18 months if all the above is met • Have a “Meets” or “Exceeds” performance evaluation based on your MBOs • Have final written approval from the Regional Vice President, Sales Associate Vice President and Agency Development Sales Manager or Sales Manager • Upon successful completion of the ACB employee/agent program and approval to enter an available successor program, you will become an Independent Contractor Program Agent CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 29 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 29
  30. 30. Agency Capital Builder: Employee/Agent Summary Recap of the Agency Capital Builder Employee/Agent program • Earn a base salary and the opportunity to earn variable compensation. Total target compensation is $50,000, geographically adjusted • Receive a monthly benefits credit of $276 (total benefits credit is $3,600 annually) • Work from a location that is paid for by the company • Be an employee for up to 24 months • Receive dedicated market specific support • Attend training and education classes designed to aid in success • Have support from an Insurance Services Specialist working at the location • Ability to earn additional capital opportunities based on successful completion of the ACB agreement and acceptance into a subsequent successor program as approved by Nationwide and the Regional Vice President • Learn valuable skills to assist in becoming an Insurance Professional CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 30 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 30
  31. 31. Agency Capital Builder: Cash Flow Features Additional Candidate Provided Capital: It’s important to remember that you will need to have access to additional capital beyond the initial AAE requirement. What is provided by Nationwide to assist with the cash flow of the agency will vary by program and by the details of your business plan. Additional capital will be needed for some programs to assist in smoothing out your cash flow The additional capital amount will vary by program, geography and if there is a seed portfolio The details of the agency business plan will impact the total additional capital needed CONFIDENTIAL AND PROPRIETARY MIC-1905 (1/09) ©2009 Nationwide Mutual Insurance Company. All Rights Reserved. Proprietary and Confidential. 31 See the AAE employment agreement for the specific terms and conditions that apply to you. This presentation is not binding on either party. 31

×