Brokerage Firm Types

Brokerage firms are the organizations that distribute insurance products to customers. The platform supports two types of brokerage firms—wholesale and retail—each with distinct roles in the insurance distribution chain. Brokers work within these firms to sell policies, manage customer relationships, and handle policy operations.

Brokerage Firm Types

The platform operates with two distinct types of brokerage firms that create a hierarchical distribution structure:

Wholesale Firms

Wholesale firms act as master distributors in the insurance distribution chain. They have automatic access to all insurance products within their tenant and manage relationships with multiple retail firms. Wholesale firms control product distribution, approve derogation requests from retail brokers, and oversee their retail partner network. Key Characteristics:

Automatic access to all insurance products
Manage multiple retail firm partnerships
Approve or reject derogation requests from retail brokers
Distribute products to retail partners
Oversee commission structures across their network

Retail Firms

Retail firms work directly with customers to sell insurance policies and manage policy operations. They must request access to specific insurance products through distribution requests. Whether retail firms sit under a wholesale firm or operate independently is decided once per tenant, not per firm (see note below). Key Characteristics:

Direct customer relationships and policy management
Must request product access (no automatic access)
Submit derogation requests to wholesale brokers for approvals
Sell policies and handle customer service
Operate under the tenant’s chosen distribution model—either independent or wholesale-parented

Whether retail firms are independent or must sit under a wholesale parent is a tenant-level setting, not a per-firm option. When a tenant is configured for independent retail, a retail firm cannot have a wholesale parent; when it is configured for the wholesale-parented model, every retail firm must have one. The platform enforces this rule when a firm is created.

What Brokers Do

Brokers are the individual insurance professionals who work within brokerage firms. They are responsible for the day-to-day operations of selling insurance and managing customer relationships. Core Responsibilities: Policy Management:

Create new policies (New Business)
Process mid-term adjustments when customers need coverage changes
Handle policy renewals
Process policy cancellations when requested
Submit derogation requests when operations require wholesale approval

Customer Service:

Update customer information and policy details
Provide documentation and policy certificates
Maintain ongoing customer relationships

Administrative Tasks:

Ensure accurate data entry for customers and assets
Track commission earnings
Coordinate with wholesale brokers when approvals are needed

How Product Access Works

Wholesale Firms: When a wholesale firm is created, it automatically receives access to all insurance products available within the insurance carrier’s tenant. This immediate access allows wholesale firms to begin distributing products to their retail partners without delay. Retail Firms: Retail firms do not receive automatic product access. They must submit distribution requests for each insurance product they want to sell. The insurance carrier reviews these requests and grants access on a product-by-product basis. This controlled access ensures that only qualified retail firms distribute specific insurance products.