As retail brokers struggle with the declining revenue of a continuing soft market, they are engaging in some activities that frustrate their wholesalers, according to E&S brokerage executives.
"It is not uncommon for us to do a placement 100 percent, and then for the [retail] broker to come in after the fact and hijack certain pieces because they can go direct," reported David Pagoumian, president of Iselin, N.J.-based NAPCO.
The extent of the problem of disintermediation, or even partially cutting the wholesaler out of the picture, is not as great as in the "post-Spitzer era," he said, noting that the appropriate response from wholesalers is the same now as it was then–demonstrating enduring value to retail customers and their insureds.
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