Seeking to redefine the relationship between the wholesale and retail producer, Dallas-based electronic insurance exchange MarketScout announced that the former chief executive officer of Crump Inc., Glenn Hargrove, has joined MarketScout to launch MSW, or MarketScout Wholesale.

Mr. Hargrove will serve as president of MSW and as a member of the board.

The concept, according to MarketScout, is to combine MSW's wholesale brokerage and managing general agent services with new, innovative distribution technology.

During an interview with National Underwriter, Mr. Hargrove explained that the new platform will be part wholesaler and part consultancy, with the latter part helping retail producers to meet long-term operational objective and to scope out areas of opportunity.

MarketScout said the MSW wholesale model will capitalize on the innovations of MarketScout, the leadership of Mr. Hargrove and the vision of doing wholesale business in a new format--bringing better service and capabilities to retail agents and excess and surplus lines carriers. MSW will also provide wholesale solutions to The MarketScout Exchange.

"MSW was formed because of the unique opportunity existing to expand wholesale operations and to provide a more robust offering of E&S solutions to thousands of agents using The MarketScout Exchange," Richard Kerr, CEO of MarketScout, said in a statement. "Glenn is a seasoned veteran, with incredible experience, who can build MSW into a real force by blending a distinct operational strategy with MarketScout's cutting-edge distribution technology."

Since leaving Crump, Mr. Hargrove said he spent the past two years as a consultant while still under contract with his former company.

"I got to see a lot of carriers and marketplaces," Mr. Hargrove told National Underwriter. "What struck me was that the majority of wholesale models have become very, very similar."

"There is very little differentiation factor as to how they do their business. The wholesale business has not evolved much in recent years."

Seeing this tremendous need in the insurance community, he now has time to team with MarketScout and launch a new wholesale model.

Speed and efficiency is the primary aim of MSW, he explained, noting that the new model will utilize MarketScout's 12 years of experience as an e-commerce platform and distribution system that allows agents nationwide to access a very efficient system.

A significant advantage that MSW will have over other startups is that its platform has been in existence a long time, he said.

That said, what Mr. Hargrove envisions for MSW is differentiating itself by engaging with producers at a strategic level--offering solutions tailored to a long-range approach of developing and building facilities for producers, and advising them on new areas where they can compete.

It will not be the traditional approach of binding and transacting business, Mr. Hargrove pointed out. Instead, the approach will be to understand a producer's long-term objectives, and then bring to the tools to the table accomplish those goals and build the business.

MSW, explained Mr. Hargrove, will act as both a traditional wholesaler and offer the same benefits of a quality consultant.

Initially, MSW will be selective in the clients it chooses as it enters its build-out phase "so we are not stretched too thin," he said.

"If you can't provide quality senior-level people, then no business is going to give you its services," he noted.

He anticipates it will be a couple of months before the program becomes national, and offerings are currently limited. For now, he said MSW is concentrating on building and identifying geography and specialty units.

The initial build-out phase will be organic, he said, but he does not rule out acquisition at a later point. Those decisions, he said, will be based on strategic fit and need.

The main objective will be keeping up with growth, he said, and making sure MSW's capabilities can keep up with expansion.

"We have got a lot of interest from a wide range of people," he said. "The only criteria are [that we must] feel we can have a serious impact and fill a need."

As far as compensation structure, that will depend upon the relationship with the producer. He said some relationships may be purely consultative, which would mean fee based, while other relationships would involve the transaction of wholesale business. MSW, he said, would be comfortable with doing either or both.

"I think that if we are going to keep the value proposition of the wholesaler to the retail community fresh and vibrant, it is important to have somebody out there who creates some alternatives to the current business model," observed Mr. Hargrove.

"The last thing the market needs is just another wholesaler."

Additional information about MSW is available at www.MarketScout.com/msw.