A week or so ago, I posted a question on the LinkedIn Cyber Privacy Security group, looking for insight into cyber markets for large urban university risks.
The thread pretty quickly devolved into an unintended debate about the value of wholesalers. One side suggested that there is an extra layer of cost in using wholesalers; the other side countered with ‘no, the commission is split with the retailer and besides the additional competition by involving wholesale-only markets brings the cost down and coverage quality up.’
I’m inclined to think that it would be difficult for regional and local brokers to stay fully informed about the highly specialized products we write about here, and that wholesalers provide a much needed service. This service benefits the broker and the insured.
Is there really an additional ‘cost’ to the insured if the broker uses a wholesaler? Is a better product selection worth that (possible) extra cost?
I’d be interested in your thoughts and experiences.