https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3ARetail_brokerDefinition:Retail broker - Revision history2026-06-13T13:53:51ZRevision history for this page on the wikiMediaWiki 1.43.8https://www.insurerbrain.com/w/index.php?title=Definition:Retail_broker&diff=8180&oldid=prevPlumBot: Bot: Creating new article from JSON2026-03-10T13:48:20Z<p>Bot: Creating new article from JSON</p>
<p><b>New page</b></p><div>🤝 '''Retail broker''' is an [[Definition:Insurance intermediary | insurance intermediary]] that works directly with individual or commercial [[Definition:Policyholder | policyholders]] to identify their risk exposures, advise on appropriate [[Definition:Insurance coverage | coverage]], and place [[Definition:Insurance policy | policies]] with [[Definition:Insurance carrier | carriers]] or through [[Definition:Wholesale broker | wholesale brokers]]. Unlike [[Definition:Wholesale broker | wholesale]] or [[Definition:Reinsurance broker | reinsurance brokers]], who operate within the industry supply chain between carriers, the retail broker is the primary client-facing link in the [[Definition:Insurance distribution | distribution]] channel. In the United States, retail brokers must hold state-issued [[Definition:Insurance license | licenses]] and owe duties of care to the clients they represent.<br />
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🔄 A retail broker's workflow begins with a thorough [[Definition:Risk assessment | risk assessment]] of the client's exposures, followed by marketing the account to suitable [[Definition:Insurance carrier | insurers]] — or, when standard markets decline the risk, to [[Definition:Surplus lines | surplus lines]] carriers via a [[Definition:Wholesale broker | wholesale broker]] or [[Definition:Managing general agent (MGA) | MGA]]. Once quotes are obtained, the broker advises the client on policy terms, [[Definition:Deductible | deductibles]], [[Definition:Exclusion | exclusions]], and pricing, then binds coverage on the client's behalf. Beyond placement, retail brokers provide ongoing service: processing [[Definition:Endorsement | endorsements]], assisting with [[Definition:Claim | claims]] reporting, and conducting periodic coverage reviews. [[Definition:Commission | Commissions]] paid by the carrier remain the predominant compensation model, though fee-based arrangements and [[Definition:Contingent commission | contingent commissions]] tied to portfolio performance are increasingly common.<br />
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📊 Retail brokers occupy a strategically important position because they control the client relationship and, by extension, influence which carriers and products gain market share. Large retail brokerages such as [[Definition:Marsh | Marsh]], [[Definition:Aon | Aon]], and [[Definition:Gallagher | Gallagher]] wield considerable market power through their aggregated [[Definition:Premium | premium]] volumes, while regional and independent brokers compete on specialized expertise and personalized service. The rise of [[Definition:Insurtech | insurtech]] has introduced digital distribution platforms that automate quoting and binding for simpler lines, putting competitive pressure on retail brokers to demonstrate added value through advisory depth, [[Definition:Risk management | risk management]] consulting, and complex program design. For carriers and [[Definition:Managing general agent (MGA) | MGAs]] alike, maintaining strong retail broker relationships remains essential to accessing a broad and diversified flow of business.<br />
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'''Related concepts'''<br />
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* [[Definition:Wholesale broker]]<br />
* [[Definition:Insurance intermediary]]<br />
* [[Definition:Surplus lines]]<br />
* [[Definition:Commission]]<br />
* [[Definition:Insurance distribution]]<br />
* [[Definition:Managing general agent (MGA)]]<br />
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