Which term best describes a wholesaler in insurance?

The term that best describes a wholesaler in insurance is a multi-carrier agent that can write with various carriers. Wholesalers, often referred to as surplus lines brokers, play a crucial role in the insurance market by serving as intermediaries between retail agents and insurance carriers, especially in the surplus lines market. They have access to multiple insurance companies, enabling them to place risks that standard insurers may not cover, thus offering greater flexibility and options for consumers.

This role is important in situations where unique or high-risk insurance needs arise, which are typically outside the realm of standard policies. By working with various carriers, wholesalers can compare coverage options and pricing, providing valuable solutions tailored to specific insurance requirements. Understanding that wholesalers operate across multiple carriers differentiates them from single agents who represent only one insurer or from insurers dedicated solely to admitted markets. Their expertise encompasses navigating complex risks and regulatory environments, particularly in surplus lines, making their function essential in the insurance industry.