Marsh McLennan Agency (MMA) is a completely owned subsidiary of Marsh that provides employee benefits as well as business insurance to small and mid-sized businesses in the United States. MMA has access to a wide range of resources and solutions through its sister companies underneath the Marsh McLennan (MMC) umbrella. With annualized revenues of around $2 billion, MMA is currently the ninth world’s biggest insurance broker in the U. S.
About MMA insurance broker
MMA Insurance Broker is a web-based insurance placement solution for Australia’s middle market as well as Small-to-Medium Enterprises (SMEs). It is committed to becoming the leading placement as well as a service provider in this segment, and alliance broker partnership combines the market reach and differentiated items with local brokers who have experience and expertise in their respective markets.
Today, it is smartly developing expanding product lines, and distribution channels, and expanding the Alliance Broker network by inviting partnerships with specialist brokers in key areas.
Marsh, headquartered in New York City, is a worldwide professional services firm with processes in insurance broking as well as risk management. Marsh is a Marsh McLennan subsidiary and part of the Risk and Insurance Services business unit.
History
History of MMA Insurance Broker: Marsh’s insurance brokerage and risk management business was established in the first decade of the 20th century, with operations in Chicago and New York. where McLennan studied railroad risk as well as insurance requirements by spending 30 days riding the rails. Marsh & McLennan was the company’s name at the time (M&M).
Marsh’s insurance brokerage unit now operates as a separate business, simply known as Marsh, within a holding company structure, but many media reports still incorrectly refer to this brokerage unit as Marsh & McLennan.
The 1960s were a particularly significant era for the company, with an initial public offering in 1962 as well as a 1969 reorganization that resulted in the holding company configuration, in which the company started to provide its services under the banners of individually managed companies.
Marsh has assisted in the creation of new insurance companies on at least two occasions when existing insurance companies were unable to offer the coverage desired by its clients: ACE Limited (presently Chubb Limited) in 1985 and EXEL Limited (now Axa XL) in 1986.
Marsh paid $115.5 million for South African company Alexander Forbes’ African risk management as well as brokerage businesses in 11 countries in 2001, as the company kept growing globally.
Following the September 11, 2001, terrorist attacks, which killed many Marsh and Marsh & McLennan employees, Marsh’s risk management division established a crisis consulting practice led by Paul Bremer and formed a partnership with Control Risks Group, a security as well as crisis-management specialist.
Marsh was engaged in a brokerage bid-rigging scandal in 2004, which affected much of the insurance industry, such as brokerage rivals Aon as well as Willis Group, as well as insurer AIG. In a lawsuit, then-New York State Attorney General Eliot Spitzer accused Marsh of not acting as an unbiased broker, resulting in higher costs for clients but also higher fees for Marsh.
Marsh agreed in early 2005 to pay $850 million to resolve the lawsuit as well as compensate clients whose insurance it organized between 2001 and 2004.
MMA Insurance brokers experienced approximately 2 years of financial difficulties following the scandal, with lagging profits as well as decreased brokerage revenue. However, by the third quarter of 2006, brokerage revenue had paused declining and the company’s profits had begun to grow again, thanks in large part to a cost-cutting rule.
Marsh had fully recovered by 2011, with its parent company Marsh & McLennan increasing its share price by 20% that year. Marsh CEO Dan Glaser stated that by 2011, Marsh had primarily entered an optimal control stage going to follow the turmoil.
Marsh appointed Peter Zaffino as CEO in April 2011, succeeding Glaser, who later became Marsh & McLennan’s chief operating officer before being named group CEO. Marsh hired John Doyle, formerly of AIG, as president in 2016.
Marsh elevated Doyle to President and CEO in July 2017, following Zaffino’s departure to AIG. As president and CEO of Marsh, Doyle is in charge of the firm’s global brokerage operations as well as Global Risk and Specialties, portfolio businesses, and operational functions.
Marsh acquired Assurance Holdings, Inc., a Shaumburg, Illinois-based individual insurance broker, in April 2020.
Commercial activities
Marsh’s core brokerage business involves representing commercial businesses looking for insurance and arranging coverage with other businesses that provide the policies themselves. Large multinational corporations, small commercial enterprises, high-growth middle-market businesses, and high-net-worth individuals are among Marsh’s clients in this sector.
Marsh’s risk management services involve geopolitical risk analysis, business interruption potential, cybersecurity consulting, and regulatory issues. MMA Insurance brokers’ risk management services have become more effective as a result of big data, risk modeling, and advanced analytics.
The bottom line
Currently, roughly 45,400 MMA Insurance Broker employees in more than 130 countries offer risk consulting, analytical modeling, risk management, insurance program management, insurance broking, and alternative risk financing services to a diverse range of businesses, professional service organizations, government entities, and individuals. MMA Insurance Broker’s revenue of $10.208 billion in 2021 represented 52% of the parent firm’s revenue fiscal year revenue.
