Wholesale insurance brokers can be defined as agencies providing products of insurance that are specialized to both the retail and and agent brokers. The main functions of the wholesale insurance broker is to provide is to provide specialized expert. The term wholesale is usually added so as to show that these professionals offer their services to the other retail agents and brokers. They therefore do not offer services directly to those who are insured. Specialty insurers are usually approached by 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.
One of the services that a wholesale insurance broker offers to the retail agent is proving expertise for specialized accounts. The brokers also provide the retail agents with their share of commission which comes from the specialty markets. it is important to know the importance of the wholesale insurance traders. The answer to the question is that the traders offer expertise.
For the unique and difficult accounts that require placement, it is the work of the wholesale insurance broker to ensure that they are placed. The specialty line markets is driven by the specialization and expertise of the markets. It is important to note that the wholesale brokerage operates in the specialty line markets. Surplus line insurers (E&S) and the admitted insurers are two insurer categories that make up the specialty markets. The non admitted are those who belong to the excess and surplus line insurers (E&S). The surplus line market is very important to the wholesale brokerage. This is because it benefits the clients through customization and availability 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 step is usually to submit an account to the broker. In this step , the submission of the account is done and also the other relevant information is provided. The second stage involves a review of the submitted information by wholesale trader. After the broker has done the review they try identify a possible market. The next sage is usually the presentation of the account for consideration.One can expect the underwriters to accept or decline the bid. 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.