Retail to Wholesale???

[thatinsguy]

I have been in the commercial P&C industry for over 10 years now (all on the retail side). I have been an Acct. Mgr, A Producer, a Sales Manager and also involved with operational aspects of the business. I recently started with a smaller independent (retail) shop as a producer again and am starting to find that it's not all that they cracked it up to be.

I now have an opportunity to transfer into a marketing/sales role on the wholesale side and can't decide if that is a direction that I want to take or not! For those of you that have had the opportunity on both the retail and wholesale side, what are the +'s/-'s that you have run into making a transfer from one side to the other? Or, just your general comments regarding the differences in operations and attitudes?

I appreciate anything that you can offer as I am a little stuck at this time!!!

[Erik M. Olsen, CIC]

The key question lies in your previous experience. Have you cycled business through a wholesaler in the past, and do you think you can make it work?

Based on your spelling and grammar, you appear to be quite an intelligent fellow. I should think you would have no problem making the transition. And you can always return to retail if you hate it!

[thatinsguy]

Thanks, Erik. Half of what I used to place was in the E&S/CAT marketplace, so I have a good idea of what I'm getting into. However; I have had the opportunity to work for some of the top retail shops in the nation - what worries me is that I know what "else" is out there and who I might/could be working with...

[LadyBroker]

I would be hesitant, but only for this reason -- what is marketing/sales for a wholesaler? Are you going to be responsible for your own book of business, and be a revenue source? That's the good way....but if you are going to be in sales, but really just calling on current and prospective customer without the ability to actually write the business (and get credit it for it), I would pass on the job. I always think about jobs like this --are you on the Revenue side of the balance sheet, or the Expense side? It sounds like this job could be on the Expense side, and in our economy, that's risky...

just my 2 cents.

[Eagleeye]

I see where you are coming from on this and would like put it to you this way. This might be too simple of a way to look at it but, after 30 years in the insurance business, this is what I have to offer. I have been an inspector, agent, manager, agency owner and now a consultant. The best answer for you is what makes you happy? I loved being that agent/owner that made the great sales and blew up the State Figures winning all kinds of awards and such. But, consulting is something I was very hesitant in getting into and found that it is the most fun I have ever had in the industry. I get to give help to younger agents and see them succeed. Bottom line is that I am really truly happy now and that is what you need to think about long term.. what makes you happy.

[thatinsguy]

Ladybroker & Eagleeye - I appreciate the feedback from you both.

Ladybroker - the good news is that the opportunity with the wholesaler is on the revenue side. In fact, it would be a commission only position (after a few months) so I would be writing my own ticket and paycheck (in essence). I would ultimately be responsible for business development and retention. However; I would have an internal marketing person who is responsible for the placement of the business while they would keep me in the loop on the deals that I would be chasing after with my retail agent... Thus allowing me to be out there making new connections and pushing for more business.

Eagleeye - It's a sick thing to say, but I will - I love the insurance game. Really! However; I am finding that I am getting burnt out on the retail production side for whatever reason. I would like to be able to leverage my relationships throughout the country while not leaving the game altogether. Ultimately, this is the reason that I am looking to make some sort of change.

Again, I appreciate everyone's feedback and advice. Take care-

[considerthis]

This will probably sound pretty cruel, but I own my own wholesale shop and I can tell you pointblank that when economic times are tough marketing/sales reps are among the first employees to go. If you don't have your own book of business that produces a sizeable amount of revenue, then bye bye. Frankly, you can believe what you want but the guys who shake retail shops out of the trees and feed them to wholesale brokers to place their business aren't worth anything in the long run. We want meat and bulldogs. If I were you I'd ask myself one very critical question: why do they need [not want] me????? Answer that from all sides and your decision will be easy.

[E&Salltheway]

I started on the retail agency side and was offered a job with a wholesaler. I have been on the wholesale side for over 20 years and has seen the swing of the hard / soft market. Honestly, i would never consider going back to the retail agency side. I still enjoy my role as a wholesaler, in current economic conditions, it just makes our job a bit harder, and we must work smarter. The exciting part is that no 2 accounts that you work on will ever be the same. As a wholesaler, you will get to work on risks that are new products, services - that the general public may / may not ever see.

I would not suggest taking a starting position with a wholesaler on a commission only basis. Without a solid retail base and a strong relationship with the various E&S underwriters, you will starve. See if your new wholesale employer (?) will let you work with a seasoned broker to help you get established in the wholesale arena. And depending on the type of personality you may have - sometimes a 'sink or swim' attitude will help you decide pretty quick if being a wholesale broker is for you.

Good luck!

[chizcurlz]

Even if it is wholesale or retail, property and casualty insurance products are still in demand.

[mszleszinski]

Thatinsguy - it has been several months since you initiated this forum so I am curious as to what decision you made (wholesale or retail) and how it is working out for you.

I went from being an underwriter to a wholesale broker several years ago and I must admit that I am very happy with my career choice at this time. One aspect of this position that I favor most is that I work with insurance professionals from both sides (underwriters and retail agents). In this field, there is a significant amount of competition so one has to work hard to succeed but despite that fact, being a wholesale broker can prove to be a rewarding career option for the right person. I will look forward to hearing back from you!

[thatinsguy]

After several factors came into play, I stayed on the retail side, however; I moved shops due to market access. Unfortunately, after being at the new shop for a little over 4 months, I believe the change was made in vain... The wholesale gig that I had lined up was a little light on the compensation aspect and I did not feel that the offering broker had a strong enough market presence to truly put me in the right place to succeed.

A new twist has come up over the past 2 weeks and I am being heavily recruited by a larger, national brokerage firm (wholesale side) and I am very excited to see where this goes. I am getting together with ownership early next month and will decide if that is the opportunity that I have been looking for.

Overall, being in a relatively new geographical environment (SW US) has opened my eyes to quite a bit. It amazes me how different attitudes, MO's and levels of professionalism this new environment presents. I do believe that in my current location there is a high need for "true insurance professionals" as there are glaring gaps that are not being filled. I hope that this newly found opportunity is all that it seems to be as I would love to step in and try to make a change that I believe will be beneficial for the community as a whole.

Once things work themselves out, I will definitely continue to update. Thank you all for the comments!