A wholesaler places risks standard carriers decline, often through non-admitted surplus lines markets, on behalf of a retail agency.
Wholesale Broker / Surplus Lines
A wholesaler places risks standard carriers decline, often through non-admitted surplus lines markets, on behalf of a retail agency.
A wholesale broker is an intermediary between a retail agency and specialty insurance markets. When a risk is too large, unusual or hazardous for standard (admitted) carriers, the retail agent brings it to a wholesaler who has access to surplus lines and specialty carriers.
Surplus lines (also called excess and surplus, or E&S) is coverage placed with non-admitted carriers.
- Non-admitted means the carrier is not backed by the state guaranty fund, but is permitted to write hard-to-place risks with more flexible terms and pricing.
- Surplus lines taxes and diligence filings apply, and the placement requires a licensed surplus lines broker.
Wholesalers and MGAs are how retail agencies serve clients whose risks fall outside standard-market appetite.