Ep. #69 - Basics of the Wholesale Insurance Brokerage Market

When an organization is looking to place insurance coverage, they typically hire a broker to negotiate with the carriers on their behalf. Often enough, the broker can find an admitted carrier that will take on their client’s risk and the coverage is bound. However, what if your organization is in an industry that the admitted carriers don’t cover?

In this episode, we review the role of wholesale insurance brokers. In essence, wholesale insurance brokers are “brokers for brokers”. They provide an important service for the placement of certain insurance coverages, especially for certain industries the traditional markets will not touch (e.g., stick-frame apartment builders on the Gulf Coast). However, there are disadvantages when using these firms.  Like all things, make sure you know the pros and cons before using this solution.