Wholesale Relationships

This is something often transparent to an insured, but just remember there is always someone in the background trying to help your company. This blog is to let you know why strong wholesale broker relationships are important to an agency.

A good wholesale relationship can greatly benefit an insured in several key ways:

  • Access to Specialized Coverage:
    • Niche Markets: Wholesalers often specialize in niche markets that are not well-served by standard insurance providers. This means insureds can obtain coverage that is tailored to their specific needs, which might not be available through direct insurers.
    • Complex Risks: Wholesalers have expertise in placing complex and hard-to-place risks, ensuring that insureds with unique or high-risk profiles can find appropriate coverage.

  • Competitive Pricing:
    • Market Leverage: Wholesalers often have strong relationships with multiple insurers, giving them the ability to shop around and negotiate better rates. This can result in more competitive pricing for the insured.
    • Bulk Purchasing: By aggregating the demand from multiple clients, wholesalers can often secure discounts or better terms from insurers, which can be passed on to the insured.

  • Broader Coverage Options:
    • Policy Customization: Wholesalers can offer more flexible and customized policy options that better meet the specific needs of the insured. This can include tailored endorsements and unique coverage combinations.
    • Access to Multiple Carriers: Insureds benefit from the wholesaler’s access to a broad array of insurance carriers, which increases the chances of finding a policy that fits their needs precisely.

  • Expertise and Advocacy:
    • Industry Knowledge: Wholesalers typically have deep expertise in their specific areas of focus, which allows them to provide valuable advice and insights to retail agents and insureds.
    • Claims Advocacy: In the event of a claim, wholesalers can act as advocates for the insured, leveraging their relationships and expertise to facilitate a smoother and more favorable claims process.

A recent example we were able to add value was with some takeaways from this most recent opportunity:  

We were able to connect with the underwriter who has expertise in this particular industry. Even though this underwriter was not our local or normal underwriter, we were able to connect with the right person. Because he had industry expertise, he knew which markets to approach, benchmarking on coverage and pricing, and was able to ask several markets to adjust their terms to benefit the insured. This underwriter went above and beyond which greatly benefitted the insured. 

In summary, a good wholesale relationship can offer insureds access to specialized coverage, competitive pricing, broader options, and expert advice all of which contribute to a more favorable insurance experience. Thanks to all our valued wholesale brokers out there!