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 also the work of the wholesale broker to support the products with specialized experts. The term wholesale is usually added so as to show that these professionals offer their services to the other retail agents and brokers. The wholesale traders do not therefore deal with clients seeking insurance services. 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. In order to be placed, both the surplus line professional liability insurance and the admitted depend on the commercial insurance brokers for placement.
One of the services that a wholesale insurance broker offers to the retail agent is proving expertise for specialized accounts. The Wholesale insurance traders also have an obligation of providing the retail agents with their share of the commission received from the specialty markets. Getting to know why the wholesale insurance traders are needed is important. The biggest need for the wholesale insurance traders is that they provide expertise and helps gain access to a wide range of specialty markets for the professional liability placements.
For the unique and difficult accounts that require placement, it is the work of the wholesale insurance broker to ensure that they are placed. Commercial insurance brokers obtain their specialization by dealing with the specialty markets. It is important to note that the wholesale brokerage operates in the specialty line 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). The surplus line market is very important to the wholesale brokerage. Through the surplus line market, clients are able to benefit through the 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. The process however involves several procedures. The first process involves submitting an account to the wholesale broker. The account is submitted with appropriate application together with other necessary information. The second step involves the wholesale broker utilizing their expertise to review the submitted information. The wholesale trader then makes an analysis of the risk and tries to identify a potential market. The account is then presented in the specialty market review and possible underwriting.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.