America's Best Wholesale Brokers and MGAs: A Deep Dive

Overview of Wholesale Brokers and MGAs: Wholesale brokers and MGAs play a critical role in the U.S. insurance market. Acting as intermediaries between retail insurance brokers and insurers, they help provide specialized coverage that might not be available through standard retail channels.

Why They Matter: These entities often have expertise in niche markets such as cybersecurity, catastrophe insurance, or high-risk industries. Their deep market knowledge, strong relationships with carriers, and tailored services make them invaluable to brokers and clients alike.

What is a Wholesale Broker?

Definition and Role: A wholesale broker is a type of intermediary who works exclusively with retail brokers and not directly with policyholders. Wholesale brokers typically have access to unique or hard-to-place insurance markets, often through surplus lines.

Types of Coverage They Offer: Wholesale brokers often specialize in complex coverages such as environmental liability, professional indemnity, surplus lines, or property and casualty insurance for high-risk industries.

Value to Retail Brokers: Retail brokers rely on wholesale brokers for expertise in placing unusual risks. Their specialized market access and relationships with insurers make them crucial for placing complex policies.

What is an MGA (Managing General Agent)?

• Definition and Authority: MGAs operate similarly to wholesale brokers but have additional authority granted by insurance carriers. They can underwrite policies, manage claims, and even price insurance products on behalf of the carrier. MGAs effectively act as the insurer for the lines they are granted authority over.
• Specialized Knowledge: MGAs often specialize in niche markets, from trucking insurance to cybersecurity and excess liability, offering tailored solutions.
• Why MGAs Are Important: Their delegated underwriting authority allows them to provide quick responses and bespoke solutions, streamlining the insurance process for retail brokers and clients.

Top-Rated Wholesale Brokers and MGAs in the USA

• Here, we'll highlight a few of the most well-respected wholesale brokers and MGAs based on industry rankings and reviews.

A. CRC Group

• Overview: One of the largest wholesale brokers in the U.S., CRC Group specializes in offering surplus lines, underwriting management, and claims management.
• Specialties: CRC Group has expertise in areas like professional liability, commercial property, and casualty, providing custom solutions for retail brokers.
• Why They Stand Out: Known for their comprehensive risk management and deep market penetration, CRC has access to over 100 top-rated carriers.

B. AmWINS Group, Inc.

• Overview: Another leading wholesale broker, AmWINS serves as an intermediary between retail agents and carriers, with significant authority in specialized insurance markets.
• Specialties: AmWINS offers a variety of products ranging from professional liability and workers' compensation to cybersecurity and property insurance for high-risk industries.
• Why They Stand Out: They have over 120 offices worldwide, providing broad access to specialty markets and innovative products.

C. Risk Placement Services (RPS)

• Overview: RPS is one of the largest wholesale brokers in the U.S. and serves all lines of property and casualty insurance with access to both admitted and non-admitted carriers.
• Specialties: RPS provides services in areas like environmental insurance, professional liability, and transportation.
• Why They Stand Out: Their ability to handle large, complex accounts and provide expert advice makes them a go-to for brokers seeking specialized coverage.

D. Markel Specialty

• Overview: Markel is both a global insurer and an MGA, operating with specialized knowledge in niche markets such as cybersecurity, professional liability, and high-risk industries.
• Specialties: Cybersecurity insurance, professional lines, and specialty property insurance.
• Why They Stand Out: Markel’s ability to underwrite difficult risks and provide tailored coverage solutions makes them a leader in the MGA market.

E. Burns & Wilcox

• Overview: Burns & Wilcox is a leading MGA and wholesale broker offering a wide array of surplus lines products. They are renowned for providing fast, specialized coverage in high-demand areas.
• Specialties: Catastrophe insurance, personal and commercial property, and liability coverages.
• Why They Stand Out: Burns & Wilcox's wide market reach and longstanding relationships with top carriers set them apart in the wholesale market.

F. Distinguished Programs

• Overview: Distinguished Programs is an MGA offering specialty insurance for property and casualty markets. They focus on real estate, hospitality, and fine arts insurance.
• Specialties: Real estate insurance, hospitality industry insurance, and community associations.
• Why They Stand Out: Distinguished Programs' niche focus and innovation in product offerings make them a leader in targeted industries.

What Makes a Great Wholesale Broker or MGA?

• Market Access: The ability to provide retail brokers with access to non-admitted or hard-to-place markets is a critical aspect of what makes a wholesale broker or MGA great.
• Specialization and Expertise: Successful MGAs and wholesale brokers often specialize in certain industries or types of coverage, such as environmental liability or professional indemnity. This expertise allows them to offer tailored solutions that retail brokers may not be able to provide.
• Underwriting Authority (for MGAs): MGAs with delegated authority can price and underwrite policies, giving them a competitive edge in speed and flexibility. This makes them particularly valuable for complex or high-risk policies.

Challenges Facing Wholesale Brokers and MGAs

• Regulatory Hurdles: With varying state regulations, MGAs and wholesale brokers must navigate complex compliance issues, especially when dealing with surplus lines and non-admitted carriers.
• Competition: As the industry becomes more competitive, MGAs and wholesale brokers must continually innovate and demonstrate their value to remain relevant.
• Technological Disruption: As digital platforms and InsurTech solutions continue to grow, MGAs and wholesale brokers are under pressure to modernize their offerings and improve efficiency.

The Future of Wholesale Brokers and MGAs

• Growth Opportunities: With the rise of niche industries and the growing complexity of risks (e.g., cybersecurity, climate change-related risks), the demand for specialized brokers and MGAs is expected to rise.
• Technology Integration: The adoption of InsurTech and AI-driven tools will likely reshape the industry, helping MGAs and wholesale brokers streamline their operations and offer more competitive products.

• Wholesale brokers and MGAs continue to play an essential role in the U.S. insurance industry, providing specialized, hard-to-find coverage for unique risks. As the industry evolves, those that adapt to new technologies and emerging risks will remain at the forefront of the market.

FAQs: America's Best Wholesale Brokers and MGAs

 What is the difference between a wholesale broker and an MGA?

• A1: A wholesale broker acts as an intermediary between retail insurance brokers and insurance carriers, often dealing with specialty markets and surplus lines. An MGA, on the other hand, has underwriting authority from an insurance company, meaning they can price, issue, and service policies directly.

 Why would a retail broker work with a wholesale broker?

• A2: Retail brokers work with wholesale brokers when they need to access niche or hard-to-place markets that they don’t have direct access to. Wholesale brokers have specialized knowledge and relationships with carriers that allow them to provide unique coverage solutions.

 What kind of insurance products do MGAs specialize in?

• A3: MGAs often specialize in niche markets such as cybersecurity, environmental insurance, trucking, and professional liability. They have expertise in high-risk or complex sectors and can offer tailored coverage solutions that standard insurers may not provide.

How are wholesale brokers and MGAs regulated in the U.S.?

• A4: Wholesale brokers and MGAs are regulated primarily at the state level. Depending on the state, there may be specific requirements for licensing, surplus lines regulation, and compliance with local insurance laws.

How do wholesale brokers and MGAs stay competitive in a crowded market?

• A5: They stay competitive by offering specialized products, having access to a wide range of markets, and providing fast, flexible service. They also invest in technology to streamline operations and improve client relationships.

 What are surplus lines, and why are they important to wholesale brokers?

• A6: Surplus lines refer to insurance that is provided by non-admitted carriers—companies not licensed in a particular state but allowed to offer insurance under specific conditions. Wholesale brokers often have access to surplus lines markets, which are essential for covering high-risk or unusual exposures.

Can MGAs and wholesale brokers handle claims?

• A7: Yes, many MGAs and wholesale brokers can manage claims, especially MGAs with delegated authority from carriers. They often have dedicated claims departments or teams that handle the entire claims process, including loss adjustment.