Wholesaler Job Opportunity...

[jk202]

No longer needed any updates on this

 

[xrac]

I don't know anything about wholesaling but I say welcome.

 

[jk202]

Thanks mate. Good to be here

 

[Hefe]

Have only seen it from the retail broker's perspective but it doesn't seem that many wholesalers market to or network with us. We have the same few that we call each time. We'll get an email reminding us what they're looking for every now and then.

Good luck on your new path.

 

[Matt37]

Have only seen it from the retail broker's perspective but it doesn't seem that many wholesalers market to or network with us. We have the same few that we call each time. We'll get an email reminding us what they're looking for every now and then.

Good luck on your new path.

I agree.

I wouldn't exactly say they try REALLY hard to network with producers.

I mean my agency uses all the well known wholesalers.. All Risks, Peachtree, Crump, etc and yes they send emails to our agency with what they are looking for and all and do stop in the office from time to time.


Honestly, the past year or two at least for the niche markets I write.. the wholesalers have not been competitive at all.

I just send stuff into them to block it.. which they are starting to get pissed about.

 

[JayRonca]

By the way "what does P&C stand for?"

Property & Casualty.

I was a Managing General Agent at Hull then a Wholesale Broker at AmWINS before starting my own retail shop last year.

Wholesaling as you know is a reserved term for working on accounts WITH (sometimes numerous) company underwriters to put together a deal. Premium range is mid-market, large and jumbo accounts.

There are plenty of positives and negatives just like any position within the insurance industry. If you are not a fan of underwriting, I'd say wholesaling is a logical step.

Ask me specific questions and I can give you more specific answers.

 

[jk202]

Wow good intel. Yea I don't personally like underwriting but the main broker I'd be working under has an underwriting background like myself. I'd have to negotiate with underwriters for premium which I can handle bc I currently am on the underwriting end of it so I know how that works. I'm curious how the commission split is typically for a wholesaler. For instance a young guy I talked to at the office been there 18 months seemed to be killing it. He said he was working on a submission that would bring in $350k of premium and the wholesale place keeps half. So $125k. Are the wholesaler commission splits similar to producer splits on new biz and renewals I've also been interviewing for typical producer jobs but this seems more interesting? If not what is typical split. Your help is much appreciated.

Thanks again
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The what is p&c thing was a joke by the way

 

[xrac]

Wow good intel. Yea I don't personally like underwriting but the main broker I'd be working under has an underwriting background like myself. I'd have to negotiate with underwriters for premium which I can handle bc I currently am on the underwriting end of it so I know how that works. I'm curious how the commission split is typically for a wholesaler. For instance a young guy I talked to at the office been there 18 months seemed to be killing it. He said he was working on a submission that would bring in $350k of premium and the wholesale place keeps half. So $125k. Are the wholesaler commission splits similar to producer splits on new biz and renewals I've also been interviewing for typical producer jobs but this seems more interesting? If not what is typical split. Your help is much appreciated.

Thanks again
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The what is p&c thing was a joke by the way

I am glad it was a joke because I don't think a wholesaler could be that stupid.

 

[JayRonca]

He said he was working on a submission that would bring in $350k of premium and the wholesale place keeps half. So $125k. Are the wholesaler commission splits similar to producer splits on new biz and renewals

IMO a smart wholesale employer would hire you as a 1099 on 100% commission with a 60/40 split your way and a small draw until you earn your keep and build your reputation with the agents in the markets, but most don't because the fact is most green wholesalers aren't proper sales people at all. Don't take this the wrong way, but you just don't have the tools in the tool box that a 10 or even 5 year veteran does. Not only do you have to know how to properly structure a $350k deal (including knowing all policies front to back so you don't burn your agents), but you have you build relationships and rapport with the company underwriters (and moreover, they have to respect you and your abilities to close a deal). I digress...

Let me address the above statement you made. On a $350k PREMIUM account, a wholesaler would retain ~5-7.5% comm on a property deal and ~7.5-10% on a casualty deal (+whatever policy fees they can get away with). So let's say you top the scale @ 10%, the house (not you) would retain $35k in REVENUE. In most shops that simply goes into your bucket to cover your expenses as an employee (salary, benefits, desk space, utilities, entertainment expenses, etc...). Typically you would only receive a BONUS after the revenue in your bucket exceeds your base salary by a multiple of 2 or even 3x in some shops. You typically do not have a commission split until your a seasoned broker with a stable book. Make sense?

Here's what I would recommend. Start with binding authority accounts as an MGA. You can utilize and build on your underwriting talents while learning coverages and drawing proper structure and sales techniques from the seasoned brokerage (wholesale) folks. When you're ready, they (your agents & other brokers in your shop) will start working with you on the larger placements and you will grow out of binding authority. If you're not ready and you simply jump into the wholesale arena, odds are you will simply burn your way through the markets while working on bottom drawer submissions. All the while you will be frustrated and more than likely become discouraged.

Not trying to be negative, just giving you the straight scoop. Work your way from the smaller, binding authority risks, developing those key relationships with agents and carriers, then graduate to middle market wholesale. The large and jumbo accounts will follow, but it will take time.

Hope this helps.

 

[tarobhap]

IMO a smart wholesale employer would hire you as a 1099 on 100% commission with a 60/40 split your way and a small draw until you earn your keep and build your reputation with the agents in the markets, but most don't because the fact is most green wholesalers aren't proper sales people at all. Don't take this the wrong way, but you just don't have the tools in the tool box that a 10 or even 5 year veteran does. Not only do you have to know how to properly structure a $350k deal (including knowing all policies front to back so you don't burn your agents), but you have you build relationships and rapport with the company underwriters (and moreover, they have to respect you and your abilities to close a deal). I digress...

Let me address the above statement you made. On a $350k PREMIUM account, a wholesaler would retain ~5-7.5% comm on a property deal and ~7.5-10% on a casualty deal (+whatever policy fees they can get away with). So let's say you top the scale @ 10%, the house (not you) would retain $35k in REVENUE. In most shops that simply goes into your bucket to cover your expenses as an employee (salary, benefits, desk space, utilities, entertainment expenses, etc...). Typically you would only receive a BONUS after the revenue in your bucket exceeds your base salary by a multiple of 2 or even 3x in some shops. You typically do not have a commission split until your a seasoned broker with a stable book. Make sense?

Here's what I would recommend. Start with binding authority accounts as an MGA. You can utilize and build on your underwriting talents while learning coverages and drawing proper structure and sales techniques from the seasoned brokerage (wholesale) folks. When you're ready, they (your agents & other brokers in your shop) will start working with you on the larger placements and you will grow out of binding authority. If you're not ready and you simply jump into the wholesale arena, odds are you will simply burn your way through the markets while working on bottom drawer submissions. All the while you will be frustrated and more than likely become discouraged.

Not trying to be negative, just giving you the straight scoop. Work your way from the smaller, binding authority risks, developing those key relationships with agents and carriers, then graduate to middle market wholesale. The large and jumbo accounts will follow, but it will take time.

Hope this helps.

Jay,
I would like to ask for some of your advice. Can't private message, due to the forums rules, but would like to connect if there is another way.

MP