Sister companies Marsh
and Mercer have today announced the formation of the largest benefits brokerage and related advisory business in the New Zealand market with the launch of Mercer Marsh
Benefits brings together Mercer and Marsh
’s existing employee health and insured benefits businesses, which comprise 17,500 benefits professionals worldwide and clients in more than 150 countries.
The two companies, which are part of Marsh
McLennan Companies, place in excess of US$60 billion in benefits premiums and equivalencies annually.
The launch follows a global initiative by the two companies to collaboratively address employee benefit cost growth around the world.
Mercer’s managing director in New Zealand, Martin Lewington, said, “Controlling the costs of employee benefits programs will be increasingly challenging with the New Zealand life market going through a significant pricing correction.
“Successive and steep premium increases have made benefits like disability insurance, salary continuance and health insurance more expensive to offer but employers are acutely aware of the continuing need to providing them.”
The new business will maintain a focus on three core areas of life and disability insurance, international benefits, and health and wellbeing.
Lewington said combining with Marsh
’s dominance in the insurance broking market would allow them to leverage the power of two market leaders.
“Our advantage will be in providing a seamless process, from advice on workforce risks and benefit design, to placement, program administration and claims, which wasn’t possible for Marsh
or Mercer to deliver in isolation,” he said.
NZ country head for Marsh
, Grant Milne, said this move would mean access to an even greater pool of resources and expertise to help businesses manage their people risks.
“We no longer operate in an environment where it is just the employer choosing the employee and this is where benefits and rewards make a huge difference,” he said.
“The new power of Mercer Marsh
Benefits will really enable forward thinking organisations to stand out from the crowd by offering their people the best benefit and reward options available.”