SPECIAL REPORT
FIVE-STAR WHOLESALE BROKERS AND MGAs
FIVE-STAR WHOLESALE BROKERS AND MGAs IBA unveils the MGAs and wholesale brokers that producers feel stand out above the rest THE WHOLESALE, specialty and surplus lines insurance industry exemplified both stability and growth during the last year. According to a 2017 A.M. Best report, surplus lines reached a historic $42.4 billion in direct written premium in 2016, representing a 2.8% increase over the prior year and the fifth consecutive year of growth. Coupled with the statistics produced by the 15 states with stamping offices, which reported a 6.4% increase in premium during 2017, these are good indicators of the market’s health heading into 2018. The Wholesale & Specialty Insurance Association [WSIA] strives to help members build profitable business relationships in the industry by providing unparalleled networking and business meetings, education, talent recruitment and development initiatives, regulatory and legislative advocacy, and promotion of the value of wholesale distribution, all designed to foster a healthy and growing market. This industry is built on personal relationships and the ability to create innovative solutions for the most unique and complex risks. WSIA’s Annual Marketplace and Underwriting & Leadership Summit provide a forum for
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networking where industry partners can collaborate and build technical expertise to develop cost-effective solutions for non-standard risks. WSIA’s education programs, held throughout the year, also provide technical training and professional development to keep members at the forefront of best practices in the industry during this time of growth. As a result, WSIA members are innovators whose knowledge of and access to specialty markets result in customized solutions for retail agents and their clients. WSIA also continues to monitor and advocate for state and federal regulation and legislation that impacts the industry. Revisions to the federal definition of private flood insurance in the Flood Insurance Market Parity and Modernization Act, preserving the private market’s ability to solve unique and complex flood risks for consumers, is currently a priority, as is uniform implementation of and continued support of the Nonadmitted and Reinsurance Reform Act [NRRA], reform of the Foreign Account Tax Compliance Act [FATCA] to eliminate the P&C industry’s requirement to report non-cash-value premiums under FATCA, and implementation of the National Association of Registered Agents and Brokers [NARAB].
Reminding retail insurance agents about the value of wholesale distribution is also a priority. A 2016 analysis from Conning Inc. found that wholesale distribution generates lower cost ratios for insurers than retail distribution. In fact, the value that wholesalers offer to retail agents and brokers – technical expertise, innovative solutions to complex risks, access to strong and stable insurers – adds no cost to the transaction. While there has never been a cost for seeking a wholesale quote, we can now demonstrate that there is no additional cost in leveraging a wholesale specialist to find the best and most cost-effective solution, making it the best way to serve the insured. WSIA members represent tens of thousands of individual brokers, insurance company professionals, underwriters and other insurance specialists and professionals worldwide. We look forward to supporting these outstanding professionals and the wholesale, specialty and surplus lines industry to navigate its bright future.
Corinne Jones President, 2017–2018 WSIA
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16/03/2018 8:04:12 AM