Our Compensation: Guide to How We are Paid

As an insurance intermediary, Mercer Limited, trading as Mercer Marsh Benefits' (MMB) role is to place insurance coverage for our clients. We are compensated in a variety of ways, including commissions and fees paid by insurance companies and fees paid by clients. MMB may receive compensation through one or a combination of the methods listed below:

  • Commissions and Fees
  • Insurer Revenue
  • Other Benefits and Compensation

1. Commissions and Fees

Client Fees and Commission (Sometimes Commission is referred to as Brokerage)

Commissions: A commission is paid to MMB by the insurer as a percentage of the premium charged to the insured for the 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. Commission rates can vary from transaction to transaction. Client Fees: Some clients may agree to pay MMB a fee for MMB services in lieu  of, or in addition to, commissions paid by insurance companies.

 

Consulting

We provide a range of consultancy services to clients and, normally we are paid in the form of a fee.

 

2. Insurer Revenue

Insurer Consulting

MMB receives compensation from insurers for providing consulting, data analytics or other services. The services are designed to improve the product offerings available to our clients, assist insurers in identifying new opportunities, and enhance insurers' operational efficiency. The scope and nature of the services vary by insurer and by geography. MMB is compensated for these services through fees.

 

3. Other Benefits and Compensation

MMB may, from time to time, participate in insurance company promotional events or employee training and development provided by insurers. Sometimes, MMB is reimbursed by insurers for its costs related to promotional marketing.

 

In common with many financial organisations, we provide a range of services to a large number of clients. We also provide certain services to insurers. Situations may arise in which the interest of a client may conflict with those of another client or with our own interest.


Accordingly, we have policies and procedures in place to ensure that should such circumstances arise, they are managed appropriately.
In an effort to advance the interests of our clients, we constantly search for innovative offerings and solutions. 

 

For reference, you can access our Conflicts of Interest policy here which also references our Greater Good policy here.

Intra-Group

The Marsh McLennan group (NYSE: MMC) contains a number of businesses. Mercer is a premier employee benefits consulting firm that may provide health and benefits consulting and insurance placement expertise to MMB clients. Guy Carpenter & Company is a leading reinsurance broker, and it may place reinsurance for insurance companies that insure a client's risk through MMB. Oliver Wyman is a global leader in management consulting that may provide actuarial or consulting services to MMB clients.

 

Use of Client Information

Data Analytics

MMB may include, on an anonymous basis, information relating to its clients' insurance programmes in benchmarking, modelling and other analytics. MMB offers an array of analytics capabilities to clients, insurers and others. For clients, these offerings include benchmarking databases, analytics and modelling tools, surveys and other compilations of information, which are designed to help clients more effectively assess their risks, make more informed decisions and construct insurance programmes and other risk mitigation strategies. MMB or its affiliates may in some instances receive compensation for its analytics offerings from clients, insurers and others.