Seeking to redefine the relationship between the wholesale andretail producer, Dallas-based electronic insurance exchangeMarketScout announced that the former chief executive officer ofCrump Inc., Glenn Hargrove, has joined MarketScout to launch MSW,or MarketScout Wholesale.

Mr. Hargrove will serve as president of MSW and as a member ofthe board.

The concept, according to MarketScout, is to combine MSW'swholesale brokerage and managing general agent services with new,innovative distribution technology.

During an interview with National Underwriter, Mr.Hargrove explained that the new platform will be part wholesalerand part consultancy, with the latter part helping retail producersto meet long-term operational objective and to scope out areas ofopportunity.

MarketScout said the MSW wholesale model will capitalize on theinnovations of MarketScout, the leadership of Mr. Hargrove and thevision of doing wholesale business in a new format--bringing betterservice and capabilities to retail agents and excess and surpluslines carriers. MSW will also provide wholesale solutions to TheMarketScout Exchange.

"MSW was formed because of the unique opportunity existing toexpand wholesale operations and to provide a more robust offeringof E&S solutions to thousands of agents using The MarketScoutExchange," Richard Kerr, CEO of MarketScout, said in a statement."Glenn is a seasoned veteran, with incredible experience, who canbuild MSW into a real force by blending a distinct operationalstrategy with MarketScout's cutting-edge distributiontechnology."

Since leaving Crump, Mr. Hargrove said he spent the past twoyears as a consultant while still under contract with his formercompany.

"I got to see a lot of carriers and marketplaces," Mr. Hargrovetold National Underwriter. "What struck me was that themajority of wholesale models have become very, very similar."

"There is very little differentiation factor as to how they dotheir business. The wholesale business has not evolved much inrecent years."

Seeing this tremendous need in the insurance community, he nowhas time to team with MarketScout and launch a new wholesalemodel.

Speed and efficiency is the primary aim of MSW, he explained,noting that the new model will utilize MarketScout's 12 years ofexperience as an e-commerce platform and distribution system thatallows agents nationwide to access a very efficient system.

A significant advantage that MSW will have over other startupsis that its platform has been in existence a long time, hesaid.

That said, what Mr. Hargrove envisions for MSW isdifferentiating itself by engaging with producers at a strategiclevel--offering solutions tailored to a long-range approach ofdeveloping and building facilities for producers, and advising themon new areas where they can compete.

It will not be the traditional approach of binding andtransacting business, Mr. Hargrove pointed out. Instead, theapproach will be to understand a producer's long-term objectives,and then bring to the tools to the table accomplish those goals andbuild the business.

MSW, explained Mr. Hargrove, will act as both a traditionalwholesaler and offer the same benefits of a quality consultant.

Initially, MSW will be selective in the clients it chooses as itenters its build-out phase "so we are not stretched too thin," hesaid.

"If you can't provide quality senior-level people, then nobusiness is going to give you its services," he noted.

He anticipates it will be a couple of months before the programbecomes national, and offerings are currently limited. For now, hesaid MSW is concentrating on building and identifying geography andspecialty units.

The initial build-out phase will be organic, he said, but hedoes not rule out acquisition at a later point. Those decisions, hesaid, will be based on strategic fit and need.

The main objective will be keeping up with growth, he said, andmaking sure MSW's capabilities can keep up with expansion.

"We have got a lot of interest from a wide range of people," hesaid. "The only criteria are [that we must] feel we can have aserious impact and fill a need."

As far as compensation structure, that will depend upon therelationship with the producer. He said some relationships may bepurely consultative, which would mean fee based, while otherrelationships would involve the transaction of wholesale business.MSW, he said, would be comfortable with doing either or both.

"I think that if we are going to keep the value proposition ofthe wholesaler to the retail community fresh and vibrant, it isimportant to have somebody out there who creates some alternativesto the current business model," observed Mr. Hargrove.

"The last thing the market needs is just anotherwholesaler."

Additional information about MSW is available at www.MarketScout.com/msw.