The never-ending search for a magic elixir that will generate growth and put more money into company coffers during a soft market has led some specialty carriers to rethink the entire wholesale-distribution system.
According to a report by Conning Research & Consulting on the property-and-casualty specialty-insurance markets, a number of insurers are offering specialty products and programs directly to retail distributors—skipping wholesale brokers and managing general agents (MGAs).
As an example of that expertise: “I get a call about a risk and I know where it fits in the market,” says Mick Kroll, senior vice president of AmWINS Insurance Brokerage of California. “I can come up with a quote that stacks up to the market. I know the carrier’s appetite. A retailer doesn’t know that.”
Zoidis adds that the market expertise wholesalers bring to the transaction equation—and for which they earn their money—increases the success rates of their carrier and retail-broker partners.