A wholesale insurance broker is an intermediary person who organizes insurance deals between an insurer and a retail broker without having contact with the insured. However, the wholesale brokers are directly in contact with the insurer, but the retail agent does not. Wholesale insurance brokers mostly specialize in a particular line of coverage that influences a specific insurance market. They are categorized into managing general agents and surplus line brokers. Unlike the surplus line brokers, managing general agents have an underwriting authority that has been issued to them by the insurer. Surplus line brokers’ main duty is to obtain insurance coverage for a retail broker.
As a retail agent, you will mostly be in need of the services of the talents of a wholesale broker, and as such, there is need to have a partnership with them. Retail agents require from wholesale brokers such services like the right client market, experience, service, and the relationships. In as much as the insurance industry has constantly been changing, these key issues are still necessary for the relationships between retail agents and wholesale brokers.
When looking for a wholesale broker, a retailer agent should look for is the strength of the wholesale broker in the particular line of coverage that the retailer desires. There is also a need to consider the relationship of the wholesale broker with the insurer that the retail agent is seeking. Also, it is important to investigate the service capabilities of the wholesale broker before committing to starting a relationship with them. Talented wholesale brokers should also be able to help a retail agent who has little or no experience in contractors insurance matters.
The best wholesale brokers are committed to a retail agent in growing their business by offering market knowledge and outstanding communication. Before you engage the services of a wholesale broker, it is usually essential to have knowledge about the insured, and you should submit to them, complete information for a better relationship. The retail agent should also ensure that he or she campaigns in all the wholesale markets including the excess and surplus lines markets so that he or she may not be cut out from any market.
Essentially, a good relationship between a retail agent and a wholesale excess and surplus insurance broker is necessary for expansion into other markets, which are constantly growing. These relationships should be retained into the future due to the turns that often occur in the market.