This piece is by Mark Kaufman, Executive Vice President, Partner at XPT Specialty.
Brokers today are navigating a complex and fast-changing insurance landscape. With rising premiums, shifting carrier appetites, and new risks emerging across key sectors, many are finding themselves caught in the middle, trying to secure the right protection for clients while markets pull back.
Coverage gaps are becoming more common, especially in industries like commercial property, construction, agriculture, and transportation, where evolving risks don’t always fit into standard underwriting boxes.
That’s where wholesale brokers play a pivotal role. With access to specialized and excess & surplus (E&S) markets, wholesale partners can help brokers navigate complexity and find tailored solutions for high-risk or hard-to-place accounts. In today’s environment, flexibility and speed matter. Wholesale brokers bring both, helping retail producers respond quickly to shifting market conditions while delivering competitive, meaningful coverage that supports client resilience.
Let’s take a closer look at where those gaps are showing up, and how wholesalers can help address them:
Wildfire risk is expanding, and the ripple effects are real
Wildfires are no longer just a concern for homeowners. In areas prone to fire, the impact is being felt across multiple lines of coverage, from commercial property to general liability and inland marine. This growing exposure is reaching many businesses, including those outside the traditional high-risk zones, making it harder for brokers to find affordable, comprehensive options.
Construction crews, trucking operations, and farm managers are feeling the impact as insurers raise premiums, reduce limits, or exit certain areas altogether. Even businesses with strong mitigation practices and clean loss histories are struggling to find stable coverage. In fact, average property insurance premiums have risen by more than 30% since 2020, with the sharpest increases found in areas exposed to natural disasters like wildfires. And in wildfire-prone states such as California, some insurers have stopped writing new business or exited the market altogether.
From non-admitted carriers to layered programs and wildfire-specific underwriting, wholesale providers give brokers more options to place specialized fire-exposure coverage when traditional carriers say no.
Agribusiness is facing climate-driven complexity
Agricultural operations are under increasing pressure, from rising input costs to unpredictable weather patterns. Toxic smoke from wildfires can damage crops. Heatwaves and drought can affect yield, livestock health, and long-term viability. And these aren’t one-off challenges, they’re part of a new normal. As of March 2025, roughly 44% of the continental U.S. is experiencing drought, affecting millions of acres of farmland. Historical events like the 2012 drought impacted 80% of U.S. agricultural land and caused billions in losses, a reminder of how vulnerable this sector can be to climate-driven risks.
Traditional policies aren’t always built to handle this kind of volatility. That’s why specialized agricultural coverage matters.
Wholesale brokers can help retail partners craft policies that reflect the real exposures farmers face today. Whether it’s a vineyard seeking coverage for smoke taint, a greenhouse needing protection against storm damage, or a large-scale operation looking to safeguard seasonal income, custom agribusiness solutions are essential.
Tailored programs can help keep farms running, even when facing significant pressure, because for many clients, their operation is more than just a business. It’s their livelihood.
Transportation and logistics encounter a shifting risk landscape
The transportation sector continues to face new and evolving risks, with two major factors currently driving losses and rates. The cost of litigation with plaintiff-friendly venues, combined with the impact of inflation, has led costs and repairs to hit astronomical levels in the US, especially in commercial trucking. More severe weather means more road closures and shipment delays, which adds a layer of unpredictability to the mix. At the same time, economic and supply chain pressures have raised the stakes for logistics operations, where timing and consistency are everything.
Unfortunately, many carriers are tightening underwriting for transportation clients, especially those operating in high-exposure regions, litigious or carrying specialized cargo. That’s left some brokers struggling to find affordable, comprehensive options. Premiums are also on the rise. In the first quarter of 2023, commercial property insurance rates rose by 20.4%, the largest quarterly increase in over two decades. This affects not just property but the broader cost structure for logistics and transportation businesses.
Wholesale brokers can extend a valuable lifeline, connecting retail partners to carriers who understand these unique risks. Whether it’s coverage for refrigerated goods, specialized equipment, or last-mile delivery, access to transportation-specific programs helps ensure clients stay protected without sacrificing performance.
Brokers need flexible, forward-thinking partners
Across all these industries, one thing is clear: risk is evolving faster than ever. In many cases, traditional markets just can’t keep up.
For brokers, that means finding ways to adapt quickly and confidently. Working with a wholesale partner offers not just access to more markets, but also insights into how to structure coverage creatively, mitigate emerging exposures, and stay ahead of client needs.
Brokers should look for a wholesale partner who will work closely with them to help solve their complex challenges. Whether it’s a tough property placement, a niche agricultural risk, or an emerging liability exposure, they should deliver solutions that protect their clients now and prepare them for what’s next. In this market, the difference between risk and resilience often comes down to having the right partner in your corner.
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