What is wholesale insurance
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Traditional insurance agents typically have agreements with one insurance company to sell its products. If that insurance company doesn't have an insurance policy that meets your needs, then the agent can't help you. Independent agents represent multiple insurance companies because they work with wholesale insurance brokers. Wholesale insurance brokers work as an intermediary between the insurance companies and the traditional insurance agents to match an insurance policy with the agent's customer's needs.
The biggest advantage to dealing with wholesale insurance is the selection. You can find a policy that meets your specific needs even if you are in a high-risk category. This is a switch from having to take something that is the best you can get because that particular company doesn't offer what you need. Having a wider selection also increases customer satisfaction because they can get the policy they want.
Because an independent agent is dealing with a wholesale broker and multiple insurance lines, the agent can be less biased in his assessment of the policies available. He is not forced to try and sell a policy that is not quite right, because he doesn't work for just one insurance company that doesn't offer anything else. Instead, he can help customers compare the benefits and drawbacks of each policy and company to make a better-informed decision.
Wholesale insurance doesn't cost the customer more. In fact, customers may get a better deal. Commissions on wholesale insurance are not increased because there are two agents selling the insurance. The policies all have a standard commission that is split between the wholesale insurance broker and the insurance agent. Also, with a wider selection of policies to choose from, customers often find the same coverage for a lower premium because the policies are offered by different companies.Source: ehow.com