Global insurance broker Marsh has recently commenced operations at MST Marsh, its 50:50 joint venture (JV) with Japan’s MST Insurance Service, Nikkei Asia has reported.
MST Marsh has been established to make specialised recommendations related to corporate coverage.
It will focus on mid-size to large corporate companies with annual sales of approximately Y30bn ($199.83m) to Y200bn.
MST Marsh will focus on providing both conventional and the latest coverage recommendations to the companies. These include fire and liability insurance, as well as coverage against cyberattacks.
The insurance recommendations offered by the new entity will be primarily based on the specific risks of the businesses.
The report quoted MST Marsh vice-president Katsutoshi Ikejima as saying: “We optimise insurance that companies had let slip through the cracks or bought too much of. There should be a great need for that.”
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According to Nikkei Asia’s report, the new agency aims to grasp an opportunity within an industry that is already “shaken” by recent price-fixing incidents.
The availability of more agents who have an understanding of the risks faced by insurance buyers can help prevent Japanese companies from buying inappropriate coverage or purchasing insurance policies through agencies within their corporate groups.
Compared with in-house agents, independent agents also pose less of a risk of conflicts of interest.
As an insurance broker, Marsh will represent customers seeking coverage and will act in line with the company’s benefit; however, the broker model has proved to be less successful in Japan, the report added.
The latest milestone comes a few months after the companies announced the signing of an initial agreement to set up this JV.
At the time of signing, the companies confirmed that the deal would not impact the existing businesses of each participant company.
Recently, Marsh announced plans to launch its new practice, Marsh Specialty Global Cyber, to enhance risk management.