Glossary
Wholesale Broker
An intermediary that places business with carriers on behalf of retail agencies, typically for risks the retail agency's own markets will not write.
Wholesale brokers hold access to markets — often surplus lines — that retail agencies cannot approach directly. The retail agency keeps the client relationship; the wholesaler places the risk.
Commission is shared between the two, and the retail agency's statement comes from the wholesaler. As with an MGA, this adds a layer between the agency and the carrier's own accounting, and reconciliation has to work from the wholesaler's figures.
See also
- Managing General Agent — An intermediary granted underwriting authority by a carrier, able to bind coverage and often to handle claims on the car…
- Surplus Lines — Coverage placed with an insurer not licensed in the insured's state, permitted when admitted carriers decline the risk.
- Broker Fee — A charge an agency bills a client for its own services, separate from the premium and the commission the carrier pays.