A recent report from investment management firm Conning & Co.'s Insurance Research Division dispels a long-held misperception that the wholesale distribution channel is substantially more expensive than the retail channel when it comes to placing specialty risks.
The report, which was commissioned by the National Association of Professional Surplus Lines Offices Ltd., a trade group that represents the surplus lines industry, analyzed distribution around cost structure and ratios between the wholesale and retail channels.
The misconception that wholesaler expertise costs more than it does "could cause retail agents and brokers to overlook insurance solutions offered by wholesalers when, in fact, leveraging a wholesale partner to find the best and most cost-effective solution for the insured is the best way to serve the insured," Brady Kelley, executive director for NAPSLO, tells PropertyCasualty360.com. "The wholesaler's value — technical expertise, innovative solutions to complex risks, access to strong and stable surplus lines insurers — adds no cost to the transaction."
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