Do you buy from a wholesaler? If not, why?

[NPS138]

Hello all! I recently started working with a company that designs a suite of tools, aimed at empowering brokers. The current strategy is to market to wholesalers, but I am having a hard time finding any that do group/individual health. Not asking for leads, but looking for clarity. Do wholesalers operate in this space? If so, how come I can't find any?

 

[leevena]

Hello all! I recently started working with a company that designs a suite of tools, aimed at empowering brokers. The current strategy is to market to wholesalers, but I am having a hard time finding any that do group/individual health. Not asking for leads, but looking for clarity. Do wholesalers operate in this space? If so, how come I can't find any?

Can you be a little more specific by what you mean by wholesalers? What type of company are you looking for?

 

[NPS138]

Sure. Again, I'm a newbie on this, so I'll try to ask a different way.

As a broker selling group benefits, do you typically buy your group health coverage through a wholesaler, or direct from the carriers? I'm charged with finding insurance wholesalers to market to, but our offering only applies to employee benefits, so I'm a bit confused.

 

[leevena]

Sure. Again, I'm a newbie on this, so I'll try to ask a different way.

As a broker selling group benefits, do you typically buy your group health coverage through a wholesaler, or direct from the carriers? I'm charged with finding insurance wholesalers to market to, but our offering only applies to employee benefits, so I'm a bit confused.

Ok, glad I asked. There are a few wholesalers in the benefits world, but it appears you are looking for General Agents. There are no fast and hard rules, but a wholesaler tends to develop product for someone, but usually does little of the distribution. Think of them as a factory.

General Agents contract with carriers/TPA’s/MGU’s and others to distribute their products to brokers. There are more GA’s. You will also find TPA’s and MGU’s who also have distribution arms.