Whole sale insurance brokers are people or agencies who are licensed to offer specialized insurance products to retail agents and brokers. It is the purpose of the wholesale insurance broker to provide their expertise to their clients. So as to differentiate these professionals from other brokers, the term wholesale is normally added. They therefore do not offer services directly to those who are insured. Specialty insurers are usually approached by the wholesale brokers. Direct access of specialty insurers by retail agents and brokers does not usually happen. These professionals also underwrite the hard to place insurance. One type of a wholesale broker is a tenant risk wholesale broker. The function of such of the brokers is also to place both admitted and surplus lines professional liability insurance.
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. it is important to know the importance of the wholesale insurance traders. The answer for this is that the wholesale traders provide expertise and a wide range of access to specialty markets for the professional liability placements.
Wholesale brokers specialize in the making placements of unique or difficult accounts to the markets that specialize in writing such accounts. Commercial insurance brokers obtain their specialization by dealing with the specialty markets. Wholesale insurance brokerage focuses on the specialty markets. Surplus line insurers (E&S) and the admitted insurers are two insurer categories that make up the specialty markets. The excess and surplus line insurers are also known as the non admitted. One of the crucial aspects of the wholesale insurance brokerage is the surplus line market. Through the surplus line market, clients are able to benefit through the customization and availability of specialty insurance.
The process involved in placing a business in the standard is similar to the one involved when seeking the services of a wholesale insurance broker. There are various processes involved with the procedure. The first stage of the process is usually to provide an account to the wholesale broker. The account is submitted with appropriate application together with other necessary information. A wholesale trader then reviews the information for correctness. The wholesale trader then makes an analysis of the risk and tries to identify a potential market. A third step involves presentation of the of the account in each market for consideration and 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.