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Marsh UK – the new normal and associated risks Project partner

Marsh UK – the new normal and associated risks WRI T T EN BY PRODUCED BY

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MARSH UK

Andr ew Woods Al ex P ag e

Left: Rachel Hoyle, COO of UK Corporate at Marsh

Interface magazine interviews Alistair Fraser the CEO of UK Corporate at Marsh and Rachel Hoyle, its COO, regarding the massive transformational change at the insurance brokerage, that seeks to help enterprises survive and thrive during a global pandemic‌

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Alistair Fraser, CEO of UK Corporate at Marsh

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OVID-19 has turned the world on its axis.

The health and wealth of nations have been hit on a global scale not seen for a lifetime.

Governments, enterprises and the public at large have had to reconfigure their operations and behaviour amid

an ongoing crisis with no clear exit strategy in sight.

Marsh is an insurance broker that excels in the expertise it provides to its clients: risk. When a client turns to Marsh to assess and manage associated risks with its operations, it trusts Marsh to provide the best fit, in terms of insurance and insurer. Marsh – with over 35,000 colleagues operating in more than 130 countries – is the world’s leading insurance broker and risk adviser and helps clients quantify and manage risk whilst also unlocking new opportunities for growth.

The notion of ‘risk’ associated with any human or business function gathers a sharp clarity when the world is gripped by an invisible killer. It is down to enterprises such as Marsh to provide some element of comfort and assurance to its clients amid a rapidly changing environment. To this end, Marsh published the Political Risk Map 2020: Mid-Year Update, providing risk ratings for 197 countries across nine perils covering the security, trading, and investment environment from January to July 2020. One key finding from the map found that all 197 w w w.t h e i n t e r f a c e . n e t

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TECHNOLOGY CHANGES, TRUST IS A CONSTANT.

Everyone has different needs. And they change all the time. What doesn’t change is the urge to take business to the next level.

You need to work with experts who can innovate. And keep you grounded in reality.

As a mutual we are wholly devoted to our policyholders and partners: providing continuity and assurance in an unpredictable world.

For Mutual Advantage libertyspecialtymarkets.com

Liberty Specialty Markets (LSM) is a trading name of the Liberty Mutual Insurance Group (LMIG).

For more information and the Privacy Notice, please see libertyspecialtymarkets.com.

Building digital solutions that add value The digital revolution shows no signs of slowing down and traditional markets, such as insurance, are embracing digital solutions now more than ever before. Liberty Specialty Markets (LSM) specialises in underwriting and claims handling, providing brokers and clients with a wide range of product capability and capacity for specialty insurance and reinsurance markets worldwide. The company is committed to advancing and enhancing its digital offering to brokers and clients, having developed a number of key digital platforms and initiatives to maintain its service levels in all situations.

“We have three pillars; commercial insurance, specialty insurance, and re-insurance,” explains Carol Baker, Head of Customer Proposition. “Through our commercial insurance pillar we typically have more interaction with our insured clients in a retail environment. That’s where we started to really look at developing digital solutions for our customers that could also add value across our specialty products.”

LSM has recently launched their new global website in multiple languages. This website acts as the start point of a broker’s or client’s journey, providing them with relevant, dynamic information in the country where they operate.

Another example where LSM enables brokers and clients to access dynamic information is through its Risk Reduce and Risk Appetite portals. Clients are given a 360-degree view of all risk activity from the moment LSM binds a policy. “It has a data-driven dashboard for the customer, which connect to their Liberty contacts, as well as their broker contacts, and allows them to interact through the site,” says Baker. “The broker has a view of this as well. It’s the same risk data, but it presents it differently for the audience. All of our risk engineering

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and claims activities, every kind of service point we have with that customer in terms of working with them on improving their risk, all of that interactivity is accessed centrally through the portal. It’s important for us to have really compelling value around our digital offerings.

The broker articulates that to the customer as part of the Liberty proposition. When you are a customer of Liberty, you don’t just get the policy. You don’t just get standard services. You get this added value throughout the customer lifecycle.”

In 2019, LSM was recognised by Placing Platform Limited (PPL) as the top syndicate for placing risks electronically.

LSM works closely with a number of key strategic partners, one of which is Marsh; the global leader in insurance broking and risk management. Through a shared partner insights programme, which sees both Marsh and LSM gather information from across both organisations, the two can continuously identify opportunities to improve service and communication. In light of the COVID-19 pandemic, this saw the two collaboratively develop a Virtual Rooms service. “Our relationship teams would have weekly meetings and provide feedback on performance, how we were communicating with them, and what issues they were finding both in the market and with customers - around support required because of the restrictions enforced by COVID,” explains Baker. “Through this we were able to discuss the concept of Virtual Rooms and work closely with them to identify further opportunities, ensuring that what we develop remains relevant, is fit for purpose and will allow us to continue to grow, not just from a competitive standpoint, but from a relationship standpoint as well.”

rated countries experienced an increase

Alistair Fraser, the CEO of UK Corporate

in their risk scores between January and

at Marsh, from Marsh’s Bristol office. “Our

July 2020, compared to 30% in the same

role is to advise our clients on their insur-

period in 2019. Of those that increased

ance and risk requirements so that they

in score, the magnitude of the changes

can manage risk in a more controlled

was also much greater in 2020. In 2019,

way, helping them to protect their busi-

97% of increases were small (0.1-0.4), com-

ness, roll out new products and services,

pared to 7% in 2020. Further, 40% of

and continue to thrive.”

score increases have risen between 1.0 and 1.4 so far this year.

The COVID-19 pandemic’s economic

Marsh’s Corporate business provides risk management advice, insurance brokerage and claims advocacy services to

and social impacts are driving significant

mid-size and large organisations through

shifts in global political risk — introducing

its extensive network of 20 UK offices.

new dynamics and accelerating existing

Unsurprisingly, for a prominent figure

geopolitical megatrends, such as trade

at a company intrinsically linked to risk,

protectionism and the transition to a multi-

Fraser wants to discuss the COVID-19

polar world order.

pandemic. “As a business, there are lots

“We segment our service delivery to

of dynamics to a pandemic, not least to

clients based on their size and needs

a changing world,” he says. “Risk in itself

around risk and insurance,” explains

is changing for companies. If you look

“ I f you look at some of our clients who perhaps historically did a lot of sales and revenue through physical assets, they’ve had to pivot and do it through digital platforms now, which brings with it, different types of risk” — A L I S TA I R F R A S E R , C E O O F U K C O R P O R AT E MARSH

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at some of our clients who perhaps

across the UK got involved, took a posi-

historically did a lot of sales and revenue

tive attitude, and actually, I don’t think

through physical assets, they’ve had to

our service to our clients dipped at all. If

pivot and do it through digital platforms

anything, I think we’re probably closer

now, which brings with it, different types

to our clients now than we were previ-

of risk. You’re not just insuring the build-

ously because we are all engaged in

ing; you’ve got cyber risk, you’ve got

the video conferencing type technology.”

reputational risk, you’ve got client data risk plus many others.

“The pandemic has resulted in some very

Like many business leaders there have been some COVID-related shifts in operations and process that could

interesting conversations with clients

still be here long after the pandemic has

as they’ve adapted to rapidly evolving events.

been successfully managed. “I’ve said to

As their insurance broker and risk adviser, our role is to help clients to navigate what are unprecedented, and at times quite frightening, times.”

So, how did COVID-19 affect Marsh and its operations, while it was looking out for its clients? After all, Coronavirus sees no barriers to its spread. Fraser explains how Marsh mobilised when the impact of COVID-19 first hit: “Firstly, we mobilised through remote working extremely quickly and extremely efficiently. We’re very fortunate in that we’re an organisation that can transact its business remotely and already had a great deal of the infrastructure required already in place. On reflection, I think if we had tried to do something like that without the threat of a pandemic over us, it would have been a more challenging task. All of our colleagues 10

MARSH UK

my executive team that if we go back to

meeting with clients for certain aspects

working the way we always worked, then

of our work, but for getting our experts in

we’ve failed. I think we’ve learned some

front of clients, the new world is provid-

brilliant new skills in terms of using video

ing us with a huge opportunity. I also think

conferencing to get access to each other

the pandemic has brought us closer as

across the country, and also getting acc-

a company.”

ess to our clients in a more efficient way.

The ability to shift operations in the way

I think our clients are more receptive to

Marsh has requires an agile and robust

having ad hoc meetings by video confer-

digital architecture, the result of an ongo-

encing rather than waiting for the formal,

ing transformative programme of digital

in-person meeting. I don’t think we can

change at the company. “Look, our focus

ever fully replace the formal, in-person

(the UK business) always has to be:

Video: Working With Kindness

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“ T he pandemic has resulted in some very interesting conversations with clients as they’ve adapted to rapidly evolving events” — A L I S TA I R F R A S E R , C E O O F U K C O R P O R AT E MARSH

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where can we be better? Where can we make the colleague experience better?

How do we make the client experience better? How can we be operationally better? How can we reduce inefficiency so that we can reinvest in talent and grow our existing talent? We’ve started to look at this in conjunction with our Executive Committee and with Rachel Hoyle, my COO, who’s been instrumental in driving this. A key focus is, where have we got inefficiencies in our process? And how can we use digital and technology to remove those inefficiencies?”

“It’s much more than a digital transformation,” says Hoyle from her Manchester office as she outlines the transformational programme at Marsh. Hoyle details two global initiatives currently running at Marsh: Operational Excellence (OpEx) and Digital. “You cannot realise one without the other,” she explains. “Within OpEx are operational reviews, whether it be reskill alignment, BPI (Business Process Improvement) and enhancing offshore capabilities to digital technologies and solutions. These will create new business processes and customer experiences, fundamentally changing how we operate, which in turn enhances the colleague experience and provides value to our customers.”

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A question often raised at the start of

these wants and needs, we are embrac-

such a process, is ‘Why are we doing

ing change and encouraging growth.

a digital transformation?’ “Regardless

A well-executed digital transformation

of the current climate, our clients and

will ease the burden on many fronts. It

colleagues are ever evolving and chan-

can streamline operations without com-

ging, and so should we,” Hoyle explains.

promising client service, and increase

“As an organisation, by responding to

employee efficiency while reducing

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overhead costs.” Fraser echoes this: “It’s

do that? Our trading system, end -to-end;

about how do we make ourselves as effi-

are all the stages necessary, and if they

cient as possible, remove duplication of

are necessary, do we have the right infor-

effort, improve the client experience, and

mation in it? So, it’s that constant review

improve the colleague experience. So

of that, and then down to what client facing

that’s right down to how we do our invoic-

technology we want to deliver for clients

ing. How can we use robotic software to

that isn’t just a fascia for the business,

Video: Marsh: A Digital Transformation

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but actually has real value to the client. Quite often companies rush to put out client facing technology because they feel they should have to, but does it really add value to the client experience? If it doesn’t, then there’s no point in doing it from my perspective.”

Marsh’s digital strategy focuses on emerging ideas and technologies, innovation, data labs, new digital products and insurtech collaboration, strengthened data, the client digital experience and analytics tools.

The key focus, according to Hoyle however, is ensuring, at the heart of it all, that there is an “excellent experience for both colleagues and clients”. End to end trading platform benefits for colleagues include: automated workflow, single data entry and manual rekey -ing reduction, the pooling of client records in one single place and accurate market intelligence. Clients benefit from improved client service, quicker binds, standardised documentation and swift invoice production, Hoyle enthuses: “Digital solutions free up colleague time to focus on client services and the higher-level tasks, giving them increased job satisfaction and career development.”

Marsh’s transformation programme is fuelled by a collaborative spirit both internally and externally. “We have global relationships that extend to a local presence,” Hoyle explains. “Internally we have the Digital & Data Community, which allows us to build connectivity among colleagues sharing good practices, updates on local and global tools and initiatives, and enlists us as advocates for deployment of new digital applications into our business areas. What’s key throughout all of this is that we learn and grow together along the journey.”

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“ Regardless of the current climate, our clients and colleagues are ever evolving and changing, and so should we” — R AC H E L H OY L E , C O O O F U K C O R P O R AT E MARSH

Of course, digital transformation is a journey and not a destination. “It’s made huge improvements and we continue to prod and press and get feedback on what does, and doesn’t, work,” Fraser explains. “It all comes back to how, ultimately, we improve the colleague and client experience. And actually, if we improve the colleague experience, the client experience will improve anyway. There’s no replacement for the human connection in an advisory business like ours; we will always have that. It’s how we use digital technology to make the advisory piece as beneficial to the colleague and the client.”

For a business like Marsh, data is everything and a datadriven strategy runs through every aspect of its organisation to make informed decisions for clients. “I think the opportunity now is how do we digitise that data so we can use it both locally and internationally to help 17

clients across the world,” Fraser. “Quite often we’ve had pockets of data in different parts of the world and people haven’t seen it or had access to it. Digitising it makes it far more accessible and beneficial for everybody.”

“We are a business that bases itself on doing things the right way,with integrity,” says Fraser. “And for me, that’s absolutely sacrosanct for any business that I want to operate with. I joined Marsh 13 years ago not only because of Marsh’s size and its expertise, but the human factor.

The business has a great soul, which is down to having fantastic experts all over the world who can support clients, colleagues, and communities alike.”

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