Our commitments and how we are paid
Mercer Marsh Benefits (“MMB”) provides clients with a single source for managing the costs, people risks, and complexities of employee benefits. It is a collaboration between Mercer and Marsh companies, global leaders for innovative and reliable health and benefits advice strategic solutions, and brokerage services.
We take pride in our transparency and disclosure approach, and we make the following commitments when working for our clients:
- We engage in ethical business practices
- We define with our clients the terms of our engagement, including our role and responsibilities
- We make available to our clients on request, and subject to local law and practices, our compensation from insurers and other third parties and our interests in the services we provide our clients
- We manage conflicts of interest with integrity honestly and fairly
Our commitments are applied throughout MMB globally, although how we are compensated and the nature of our disclosure may differ according to the services we provide and in accordance with local law and practices.
This Global Transparency and Disclosure Statement summarises the types of compensation received across MMB globally. There may be countries that either do not receive certain of the compensation types noted below due to local practices or restrictions under local law and regulation. Accordingly, please consult your local MMB consultant for information related to a specific entity.
Broadly, MMB offers a wide range of services to its clients, with a variety of compensation arrangements with clients and insurers, including one or a combination of:
- Fee arrangements
- Insurer services revenue
- Other forms of compensation
1. Fee arrangements
Some clients may agree to pay a fee to MMB for the services it provides in lieu of, or in addition to, any commissions MMB receives from insurance companies. Fee amounts will be agreed with clients and included in the contract for services entered into between MMB and client at the outset of the engagement.
2. Retail Commissions
Retail commissions are paid to MMB by insurers as a percentage of the premium charged to the client for its insurance policy. The amount of commission may vary depending on a number of factors, including the type of insurance product sold and the insurer selected by the client, and commission rates may vary from transaction to transaction and change from time to time.
3. Alternative Commissions
MMB may receive different types of commission from insurers in addition to retail commissions as follows:
· Additional Retail Commissions: MMB may negotiate additional retail commissions with insurers for certain types of placements at the start of the year or a specific period, and they are fixed for the duration of that year/specific period.
· Distribution Fees: commission structured differently across time, i.e. the first year % of commission is typically higher (in lieu of business acquisition costs for the broker), and in subsequent years it drops to a lower level.
Additional information about MMB’s insurer commission arrangements are available to MMB clients on request to MMB.
4. Requesting details of how we are paid
Clients of MMB may obtain further details of how we are paid by making a request to their usual MMB contact.
How we are compensated and the level of information we can disclose may change according to the services we provide and in accordance with local law and practices.
5. Related Party Transactions
We and our subsidiaries or affiliates own shares in and have contracts with certain insurers and reinsurers. We also own or have interests in other insurance-related businesses that may provide services associated with a client's account.
If you have any questions about MMB’s transparency and disclosure commitments, or would like information on the compensation we receive, please do not hesitate to contact your MMB client contact.
Marsh McLennan is the leader in risk, strategy and people, helping clients navigate a dynamic environment through four global businesses.
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