Wholesale broker (definition)
An intermediary between retail agencies and markets they cannot access directly, typically for E&S and specialty placements.
A wholesale broker sits between the retail agency and markets the retailer cannot access directly, most commonly in E&S and specialty lines. The retailer owns the client relationship; the wholesaler owns the market relationships and placement expertise for hard-to-place risks.
Unlike an MGA, a pure wholesale broker holds no underwriting pen; it negotiates with underwriters on the retailer’s behalf. Many firms operate both models under one roof, which is worth understanding before submitting.
Wholesalers earn a share of the commission. The retailer’s calculation is whether market access and placement skill on a difficult risk are worth the split, and for genuine E&S risks the answer is usually yes.