More Thoughts on the Nationwide, Harleysville Merger

It is going to be very hard for Nationwide to give the Harleysville Independent agents access to Nationwide products and not give Nationwide agents access to Harleysville products. This is the beginning, I believe of major changes in the independent agency system. This merger will most likely blur the lines of agent differences. As direct / captive agents get more access to independent markets, it becomes irrelevent to a consumer the differences of independent agents versus a captive agent. This acquisition could be a game changer. It most likely will spur more of the big boys buying up independent regional insurance companies. The other issue here is stock value and stock companies. Nationwide is a large mutual and now they own a super regional stock company. How they use this dynamic and how they market it remains to be seen, but I have to believe this was a very brilliant and calculated move by Nationwide. Hold on to your hats folks. Until next time be careful out there and know your risks. K

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