Wholesale insurance brokers are becoming crucial players in today’s insurance market, especially in high-risk areas like California. Traditionally viewed as secondary resources, their role has evolved significantly. Mark L. Kaufman, a partner and executive vice president at XPT Specialty, emphasizes that wholesale brokers are now essential for helping retailers secure business in a challenging environment.
In recent years, many standard insurance carriers have pulled back from the market, particularly in California, where they no longer offer personal lines policies. This shift has made the expertise of wholesale brokers even more valuable. Kaufman points out that retailers now rely on wholesalers not just for placing policies, but for guidance and support throughout the process.
Wholesalers bring a unique advantage to the table. They have exclusive access to certain markets and focus on building strong relationships with retailers. Kaufman explains that unlike standard carriers, who often have transactional relationships, wholesalers provide tailored support. They take time to explain coverage options and work closely with retailers to meet the specific needs of each client.
XPT Specialty stands out by prioritizing small and mid-sized accounts, which are often overlooked in the industry. Kaufman believes that these accounts can be just as significant as larger ones when managed effectively. This commitment allows retailers to offload smaller accounts without compromising on service or profitability.
As the insurance landscape continues to change, Kaufman sees an expanding role for wholesale brokers. Retailers are increasingly looking to them for not just market access, but also for strategic insights. This shift indicates that the reliance on wholesalers will only grow as they help retailers navigate the complexities of the market.
Kaufman concludes that the perception of wholesalers as an afterthought is outdated. Their involvement is now more critical than ever, as they provide essential support in a competitive and evolving industry.