Wholesale insurance brokers can be defined as agencies providing products of insurance that are specialized to both the retail and and agent brokers. It is the purpose of the wholesale insurance broker to provide their expertise to their clients. The term wholesale is usually added so as to show that these professionals offer their services to the other retail agents and brokers. For those seeking to be insured, they deal with retail agents and brokers and not wholesale brokers. In most cases the specialty insurers only deal with the wholesale brokers. The retail agents cannot be able to utilize the specialty insurers. The special and hard to place insurance are also dealt with by the wholesale insurance brokers. One type of a wholesale broker is a tenant risk wholesale broker. Both the admitted and the surplus line depend on wholesale brokers to be placed.
For retail agents, they should expect wholesale brokers to provide the expertise for the specialized accounts and proposals for insurance. They are also the ones to provide a share of the commission received from the specialty markets. Getting to know why the wholesale insurance traders are needed is important. The answer to the question is that the traders offer expertise.
One of the unique functions of the wholesale insurance brokers is that they make placements of unique or difficult accounts to the markets that have specialized in such accounts. Commercial insurance brokers obtain their specialization by dealing with the specialty markets. Wholesale insurance brokerage focuses on the specialty markets. Admitted insurers and the excess and surplus line insurers (E&S) are the two types of insurers allowed to operate in the specialty line markets. The non admitted are those who belong to the excess and surplus line insurers (E&S). In the wholesale brokerage, the surplus line market is very key. This is due to the fact that clients benefit from it through availability and customization of specialty insurance.
For one to obtain the services of a wholesale insurance broker, the process involved is the same as that one followed when a business is being placed in the standard markets. There are various processes involved with the procedure. The first process involves submitting an account to the wholesale broker. The submission of the account is usually done together with provision of other necessary information that required. The second stage involves a review of the submitted information by wholesale trader. The wholesale trader then makes an analysis of the risk and tries to identify a potential market. The next sage is usually the presentation of the account for consideration.Each of the requested underwriter then responds with an acceptance or decline. If accepted, the wholesale broker presents the proposal to the retail agent who then works with the client to understand the proposals and determine the most suitable option to bind.