How wholesalers work
A retail agent sends a submission to a wholesaler, which markets it to its carriers and MGAs, negotiates terms and returns quotes. Some wholesalers only broker, while others hold binding authority for certain classes, blurring the line with an MGA.
Why retail agents use them
Many specialty and E&S carriers do not appoint retail agents directly, and the wholesaler's market knowledge is much of the service. For a hard-to-place risk, it can decide whether the client gets coverage at all.
Where the time goes
Wholesalers handle large submission volumes, and intake, market selection, quote comparison and chasing missing information fill much of the day. Speed matters because a retail agent will often send the same risk to more than one wholesaler.
Where automation helps
The highest-value systems for a wholesaler read incoming submissions, match each risk to the markets whose appetite fits it and compare the quotes returned, freeing brokers for negotiation and relationships.