Why don’t CRE Brokerages Have In-House CRE Insurance Brokers?
As the title asks, why don’t the big brokerages have in-house insurance brokers? Seems like an easy value-add to go with the other service offerings.
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Based on the most helpful WSO content, the reason big CRE brokerages might not have in-house insurance brokers could be tied to the nature of the commercial insurance industry itself. Commercial insurance, particularly property and casualty (P&C), is highly tailored and bespoke. Clients often prefer independent brokers who can provide access to a range of options and unbiased advice, rather than being tied to a single carrier or a brokerage's in-house offerings.
Additionally, carriers themselves prefer to outsource the sales force to brokers rather than bearing the cost of maintaining one in-house. This dynamic creates a market where independent brokers thrive by building relationships and offering tailored solutions, which might not align with the operational model of CRE brokerages.
Moreover, the insurance brokerage business is relationship-driven, and the value lies in the trust and expertise of the broker. Integrating this into a CRE brokerage might dilute the perceived independence and expertise that clients value in insurance brokers. This separation allows both industries to focus on their core competencies while collaborating when necessary.
Sources: https://www.wallstreetoasis.com/forum/corporate/the-forgotten-cousin-of-finance-commercial-insurance?customgpt=1, Value add - multifamily ... RENTS, TAXES, WTF??, Future of commercial real estate brokerage, Career Path in Commercial Real Estate, Why does everyone want to be an analyst not a broker making way more money?
Some of them do. Franklin Street in southeast is one of them.
Cross reputational risk and the amount of referrals in reality are far less then you think
Fair enough - even less than referrals between leasing / capital markets / property management?
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