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In a new LIMRA study, 9 in 10 financial professionals agree that wholesalers deliver value-added services beyond product expertise. In addition, 6 in 10 financial professionals established a new wholesaler relationship and placed business with them within the last year. While financial professionals, on average, report having relationships with five to six external wholesalers, 72% say a good relationship with a wholesaler is often the determining factor when selecting a carrier to place business with.

Wholesalers are intermediaries between financial professionals and carriers. The research looked at two types of wholesalers: external wholesalers who play a significant role in supporting financial professionals, particularly in product positioning and point-of-sale assistance; and internal wholesalers who help with planning tools, illustration support, and basic service issues.

At a time when the number and complexity of insurance and financial services products has never been greater, a wholesaler’s job is to help financial professionals identify the right products that will address their clients’ unique needs. Wholesalers offer support in a myriad of ways: by imparting product knowledge, offering training and education, streamlining the sales process, and providing market insights.

Using Data Analytics
As we see in every other aspect of the business, use of technology and data analytics has become table stakes to compete in today’s environment. According to the LIMRA study, more than 6 in 10 financial professionals say they use data analytics in their practices, underscoring a growing reliance on data-driven insights to inform decision-making processes so they can differentiate themselves in the marketplace and drive business growth.

Financial professionals’ expectations signal there is a need for wholesalers and carriers to continually expand their data analytics and technical support to expand their market share. LIMRA finds a majority of financial professionals (54%) believe they receive sufficient data and analytics support from wholesalers and the carriers they represent; but a third of financial professionals say they want to receive support or receive more support in this area.

Communication Is Key
As with any business relationship, strong and frequent communication is important for success. The study finds the top ways wholesalers engage financial professionals include in-person (40%), telephone calls (38%), virtual meetings (18%), and, to a lesser extent, text (4%). While many financial professionals express a preference for in-person meetings, those opting for virtual meetings highlight benefits such as geographic convenience and time savings. In addition, virtual communication proves effective in gathering information on carriers’ products and tools, designing cases, and resolving service issues.

Nearly 3 in 5 external wholesalers foresee increases in one-on-one meetings with financial professionals and about half expect increases in group meetings in the next three years. On average, annuity external wholesalers expect one-on-one meetings with financial professionals will account for 72% of meetings, while for life external wholesalers the average is 64%. More than 6 in 10 financial professionals agree that in-person communication will be the most highly valued means of wholesaling in the next three years.

While rare just a few years ago, virtual meetings are a common and some might even say essential means of communication. Virtual meetings have opened new possibilities. The challenge for external wholesalers is finding the optimal balance between virtual and in-person that is both efficient and effective for themselves and the financial professionals with whom they call upon.