Marsh lifts hood on partnership with motor peak body
She said these core characteristics involve digital initiatives and face-to-face commitments with MTA members.
Digital and face-to-face engagement
“Without divulging too many trade secrets,” said Mills. “we’ve definitely created a plan, both digitally, but also that face to face engagement piece so as and when their insurances, in particular, are coming due, or if they’re looking just to review, we provide that personalised service.”
She said personal visits or telephone calls with clients would involve analysing data like gross profit and considering appropriate insurance coverages.
“Noting that cost is obviously, especially in the current times, a really important factor as well,” said Mills.
According to brokers, high premiums are one of the biggest challenges facing them and their clients. How does Mills expect this partnership to help MTA members who could be struggling to pay for their insurance?
“Particularly in this market, our obvious commitment is to keep premiums competitive but really focus on lowering claims and putting risk management and mitigation practices in place,” said Mills.
Creating “competitive tension”
She said Marsh’s access to markets as a global broker with a significant presence locally in the Asia-Pacific region, allows the firm to “create competitive tension.”
“From a pricing perspective, I think that’s where real benefit happens, particularly, for small businesses,” said Mills.
Another focus is making sure business customers are getting the right advice and buying the insurance they actually need.
“In a lot of cases that we have seen, there have been instances where they’re buying cover that really probably isn’t suited to their needs and requirements,” she said.
Mills also said Marsh data shows that up to 65% of businesses “don’t insure the most critical requirements” so they have no coverage for catastrophic events and their possible consequences, like business interruption.
“Our bespoke process is ensuring the members spend limited insurance budget but in the right areas,” she said.
Claims are also a priority, she said, including issues like whether a business is in distress and needs emergency payments.
“The customer service piece and ensuring momentum is imperative,” she said. “So we do have a dedicated claims team as well, in particular, that do service this partnership also.”
The alliance with the MTA NSW, said Mills, is a unique offering in the auto industry.
“But certainly the partnership side is not unique for Marsh in general, we span across a number of different occupations,” she said.
The global brokerage counts sports organizations like Golf Australia, the AFL and also personal trainers through Fitness Australia, as other partners.
“Organizations are always at the heart of our tailored solution and obviously we bespoke it depending on the needs of the association and its members,” she said.
The alliance with the MTA NSW, she said, will aim to adapt bespoke solutions to cater for a range of member occupations, from mobile mechanics to panel beaters.
It all started with a mega-merger
The Marsh / MTA NSW partnership is the latest evolution in an arrangement inherited by the brokerage when it acquired London-based global firm Jardine Lloyd Thompson (JLT). That massive US$5.6 billion deal was signed in 2018 but only finalised in 2019 when it was approved by the UK’s High Court.
“Alex [Alex Kathestides] the MTA’s CFO reached out to us in 2022 with a view to us helping them add to their member benefits, noting they were already very proactive on a number of fronts, including workplace health and safety,” said Mills.
The transition to a more formal partnership, she said, started that year.
“MTA will offer a suite of insurance products to the automotive industry, including material loss or damage, business interruption, public and product liability, burglary, and professional risk,” said an MTA NSW media release about the Marsh alliance.
The automotive organization is one of Australia’s largest state-based industry associations. Marsh is regarded as the world’s largest insurance broker and is part of Marsh McLennan, a company with annual revenue of more than US$20 billion.
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