Careers at Marsh & McLennan Companies
Marsh & McLennan’s mission is to create peace of mind by passionately delivering exceptional employee benefits and risk management solutions.
Marsh & McLennan is a provider of professional services in the areas of risk, strategy, and people. The firm operates two reportable business segments:
- Risk and Insurance Services - Includes risk management activities (risk advice, risk transfer and risk control, and mitigation solutions) and insurance and reinsurance broking and services. Business in this segment is conducted through Marsh and Guy Carpenter. It generated 53% of revenues in 2015.
- Consulting - Includes Health, Retirement, Talent, and Investments consulting services and products, and specialized management, economic, and brand consulting services. Business in this segment is conducted through Mercer and Oliver Wyman Group. It generated 47% of revenues in 2015.
In 1885 Henry Marsh left Harvard College without a degree and joined R.A. Waller & Co., an insurance firm based in Chicago. In 1889, after the deaths of some of its principals, Marsh teamed with co-worker Herbert J. Ulmann to purchase a controlling interest in the company, and renamed it Marsh, Ulmann, and Company.
The firm focused on managing the insurance affairs of large corporations in exchange for commissions. It helped pioneer self-insurance by assisting these clients in setting aside funds to cover themselves in the case of potential losses without the use of insurance firms. At the time it began attempting to obtain contracts with railroad firms, a promising market.
As part of this new pursuit, Marsh met Donald McLennan, the owner of an insurance agency in Duluth, Minnesota. He was an expert on the topic of railroad insurance. He, Marsh, and Daniel Burrows had been promised the insurance account of the Chicago Burlington and Quincy Railroad by various directors. They ultimately decided to just work together so they could combine resources.
In 1904 the three formed a new agency called Burrows, Marsh, & McLennan. It began securing numerous railroad contracts. In 1906 Burrows retired and the firm was renamed Marsh & McLennan (M&M). In 1958 it went public. Through the rest of the century it diversified through several acquisitions. In 1975 it changed its name again, to Marsh & McLennan Companies (MMC).
Business model of Marsh & McLennan Companies
MMC has a mass market business model, with no significant differentiation between customer segments. The company targets its offerings at firms of all sizes and industries.
MMC offers three primary value propositions: accessibility, customization, and brand/status.
The company creates accessibility by providing a wide variety of options. It operates four subsidiaries that present a broad range of services. These are Marsh, which offers insurance broking and risk management services; Guy Carpenter, which provides risk and reinsurance intermediary services; Mercer, which offers talent, health, retirement, and investment consulting services; and Oliver Wyman, which offers management consulting services.
The company enables customization by tailoring its services. Its Marsh & McLennan Agencies division operates a hub and spoke structure, allowing decentralized leadership in its various regions so that clients can benefit from localized expertise (called a “local touch”). It also works to extend its regional capabilities by acquiring partner firms in nearby cities.
The company has established a strong brand due to its success. It employs 60,000 people worldwide and generates annual revenues of $13 billion. It is one the largest insurance brokers in the world in terms of revenues. It serves clients in over 130 countries. Its Marsh & McLennan Agency division is the12th largest insurance broker in the United States, with annual revenues of $900 million. Lastly, it has won many honors, including the following:
- Recognition by Institutional Investor Magazine as a member of its 2017 All-America Executive Team, as having the #3 Overall CEO in the insurance industry, as being #3 with buy-side analysts, and as being #2 with sell-side analysts
- Ranking 29th on the 2012 Bloomberg Businessweek 50, an annual ranking of the S&P 500's top 50 performing companies
MMC’s main channel is its business development team. The company promotes its offering through its website, social media pages, and participation in conferences.
MMC’s customer relationship is primarily of a dedicated personal assistance nature. It works closely with clients in order to help them with their risk, strategy, and people strategies. That said, there is a self-service component. The company’s website features an “Insights & Analysis” section that includes reports and white papers.
MMC’s business model entails designing, developing, and delivering it services to customers.
MMC’s key partners are the suppliers that provide the products and services it needs to manage its operations. The company’s Marsh & McLennan Agency subsidiary partners with privately held brokers throughout the U.S. and helps them operate strategies within their respective markets. It also shares best practices from other MMA partner firms.
MMC’s main resources are its human resources, namely its network of 60,000 consultants and experts in risk, strategy, and people services worldwide.
MMC has a value-driven structure, aiming to provide a premium proposition through significant personal service and frequent service enhancements. Its biggest cost driver is likely cost of services. Other major drivers are in the areas of compensation/benefits expenses and operating expenses.
MMC has one revenue stream: revenues it generates from contracts signed for the provision of its professional services.
info: Daniel S. Glaser earned an undergraduate degree at Ohio Wesleyan University. He previously held several leadership roles at MMC, including Chief Operating Officer, Chairman and CEO of Marsh, Inc., and positions in commercial insurance and insurance brokerage.
info: Peter J. Beshar earned a Bachelor‘s degree at Yale University and a JD at Harvard Law School. He previously served as a Litigation Partner at the law firm of Gibson, Dunn & Crutcher LLP and as an Assistant Attorney General in the New York Attorney General's office.
info: E. Scott Gilbert earned a Bachelor of Arts in Social Studies at Harvard University and a JD at Harvard Law School. He previously served as Chief Compliance Counsel at GE and as an Assistant United States Attorney in the Southern District of New York.
info: Mark McGivney earned a B.S. in Accounting at University of Rhode Island and an MBA at the University of Chicago. He previously held several leadership roles at MMC, including CFO of Marsh, Inc. and CFO and Chief Operating Officer of Mercer.
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