Wholesale distribution is not being pushed aside by digital platforms, but it is being reshaped, according to Rich Eknoian (pictured), CEO of World Insurance Associates. “Redefined versus diminished, 100%,” he said.
Direct-to-consumer models are disrupting the industry, but wholesalers still have a place. Ekonian maintained. The future role, he stressed, is in handling complex and non-standard risks that are not easily automated or commoditized. To compete, wholesalers have to increase speed, invest in digital tools, and embrace data-driven underwriting. “They need to adapt, focus on that more complex, but also perhaps be faster, create digital interfaces, whether they’re APIs or portals, and also rely on data-driven underwriting to continue to differentiate themselves in the marketplace,” he said.
The push for relevance is not theoretical. Retail brokers are increasingly turning to wholesalers for specialized placements, and Eknoian argued that this is where wholesalers could prove their value.
Eknoian said wholesalers are well-positioned to handle risks that traditional carriers have pulled back from, such as cyber and environmental coverage. “Wholesalers in general… are in a better position to address the burgeoning of specialized risk,” he said.
Cyber insurance in particular has moved beyond standard limits and exclusions. Embedding risk-prevention services within policies, such as monitoring or training tools, could create something unique in the marketplace. On environmental risks, he pointed to the efficiency of bundling. “Bundling general liability, the pollution, the excess together is something that brokers, I think, will embrace. Versus having to go out and get different lines of coverage to really overlap,” he said.
The key, he added, is innovation rather than reaction. “It’s not just adapting to the marketplace or reacting. It’s being innovative, trying to stay a step ahead, trying to create something different or unique in the marketplace,” he said.
While specialization offers opportunity, the relationship between wholesalers and retail brokers remains under scrutiny. Some agents have raised concerns about transparency and alignment, questioning whether wholesalers are always acting in their clients’ best interests.
Eknoian acknowledged friction but resisted the view that the problem was worsening. “Trust gap – I don’t know if it’s widening, I mean, I think it’s just the nature of doing business between wholesalers and brokers, sometimes,” he said.
Still, regulatory pressure is mounting. “Every change, it seems, you see, is always an increase in broker disclosure rules, right? There’s never a decrease,” he said. To address the issue, he argued for more openness, driven by technology. He cited open-architecture platforms, greater fee disclosure, and enhanced reporting such as quote-to-bind ratios. “No one wants to practice quote, right? I mean, so you want to be cognizant of those quote-to-bind ratios and making sure that everyone’s using their time productively,” he said.
Beyond technology and trust, wholesalers also have a role to play in stabilizing access during volatile market cycles. Small and mid-sized businesses often find themselves priced out or excluded when reinsurance capacity tightens. According to Eknoian, this is exactly where wholesalers can prove their worth.
“The macro environment is volatile… wholesalers will always fill a role. We’ll always have a role to fill the gaps created by this volatility,” he said.
Access to the E&S market is one obvious tool, but he highlighted program business as another. “Where there’s gaps, creating or managing program business really creates wonderful opportunity for wholesalers and MGAs and MGUs,” he said.
“Wholesalers are uniquely positioned to maintain access in these times of volatility and continue to give the brokers optionality,” he said.
