If you run an insurance broker business, working with a wholesale insurance broker can make real financial sense. We explain the key benefits and what to look out for when you choose a wholesale insurance broker.
First, what is a wholesale insurance broker?
A wholesale insurance broker is an intermediary company that sits between a customer-facing retail broker and the non-customer facing insurance company. That means the wholesale broker has no direct contact with the customer – that is all handled by the retail broker.
Next, how can using a wholesale insurance broker boost your business?
There are many reasons why an insurance broker may partner up with a wholesale insurance broker:
- Specialist knowledge. Wholesale insurance brokers often specialise in specific areas, for example, drone insurance. A general retail insurance broker may be asked for a quote for drone insurance but doesn’t have the knowledge required to give a competitive quote. Instead, the broker turns to their partner wholesale insurance broker, which will use sector knowledge to generate the necessary level of cover at a competitive price.
- Wholesale insurers have already established relationships with insurance companies, including those providing specialist cover. This means they can quickly identify appropriate cover, saving you time. For example, rather than one of your team spending a significant amount of time researching and making new contacts for a small volume of business, you can outsource it to your wholesale broker.
- Strong relationships with providers. Working with a wholesale insurance broker means your business can offer cover to customers even for areas where you have no direct contact with an insurer providing cover for that type of business.
- Lower prices are another benefit of using a wholesale insurance broker with established relationships with insurance companies. With a relationship already in place, deals can be negotiated. And an experienced wholesale broker will also know which insurance companies are likely to offer the best prices for different risks. The wholesale broker can also use their large buying might to negotiate discounts.
Wholesale insurance brokers and difficult-to-place risks
Insurance brokers also turn to wholesale insurance brokers when faced with difficult-to-place or unusual risks, for example, classic vehicles. The wholesale brokers’ open access to insurance companies and knowledge means they can act quickly and efficiently finding the best value insurance cover. For example, using one allows your insurance business to offer cover to a customer that would otherwise be beyond your area of expertise.
Does it cost the consumer more if a wholesale insurance broker is used?
Every insurance situation is different. But generally, it won’t cost the customer more if a wholesale insurance broker is brought into the equation. That’s because the specialist knowledge and contact book of the wholesale insurance broker means that better discounts and premiums can often be sourced.
Finally, where do I find a wholesale insurance broker?
Finally, many independent insurance brokers also offer wholesale insurance services to retail brokers. For example, Park insurance is a well-established business with an extensive team of dedicated brokers. It provides specialist knowledge across a wide range of commercial and non-commercial sectors. These include:
- Driver training
As one of the UK’s largest independent insurance brokers, Park Insurance has developed close relationships with many of the UK’s most trusted insurance companies large and small.
Choose Park insurance for your wholesale insurance needs
Access the expertise and contact book of Park Insurance’s wholesale insurance service. Together we can save you time and money, allowing you to offer your clients a complete package, even for more difficult to place risks. Our expert brokers cover specialisms ranging from cyber crime to insurance for taxi drivers. For more details, please contact us on 0177 9556835 or get in touch.