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Wholesale insurers show lower non-loss costs than retail in new study
A Conning analysis covering 2010 to 2025 finds wholesale-focused insurers had a 1.4 percentage point total non-loss cost advantage over a retail composite, using statutory filings for 107 wholesale-focused companies.
Insurance Business reports a new Conning study commissioned by the Wholesale and Specialty Insurance Association finds the wholesale insurance channel has consistently lower total non-loss costs than retail, based on data spanning 2010 through 2025.
According to the outlet, the five-year results from 2021 to 2025 show a 1.4 percentage point lower total non-loss cost ratio for a composite of wholesale-focused insurers versus a comparable retail composite.
Insurance Business adds that the study used statutory financial filings rather than self-reported data, covering 107 wholesale-focused companies with $76 billion in premium and 165 retail-focused companies with $110 billion in premium.
The report also notes the wholesale advantage was 1.8 percentage points in an earlier Conning analysis covering 2010 to 2021, and that wholesale median commission ratios ran 2.7 percentage points above retail over the study period, with the higher commissions offset by lower costs elsewhere.