Wholesale Survey Results

Results of the NAPSLO survey of retailers conduct by the Chicago firm of McKnight Kurland Baccelli were released in late February and the overall results showed a positive view of wholesalers by retailers. (Results are available to view on the NAPSLO website.)

The survey had four major conclusions:

1. A large majority of retail brokers view specialty insurance wholesalers positively and expect to work with them in 2008.
2. Retailer brokers indicate they value wholesalers most highly for their access to insurance carriers and specialty insurance coverage, and for their experience, expertise and knowledge.
3. Retail brokers rate specialty insurance wholesalers most poorly for their lack of responsiveness. They also express frustration with a perceived lack of reasonable pricing/commissions and an inability to deliver quality outcomes for their clients.
4. Retailer brokers report significant differences in professionalism across the specialty insurance wholesaler community, drawing a sharp distinction between “good” wholesalers and “bad” wholesalers.

MKB said these conclusions suggest that retail brokers' perceptions of wholesalers are not as bad as assumed. However, they do confirm: 1) a lack of awareness of the value wholesalers bring to retail brokers and their clients, and 2) dissatisfaction with issues of pricing and professionalism (including responsiveness).

MKB recommended the development of a campaign to promote the positive attitudes retail brokers have about wholesalers to the commercial insurance marketplace using integrated marketing and communications strategies. The NAPSLO Board is currently reviewing the proposal and will be notifying the membership with details.