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Marsh McLennan hires 5,000 staff and sees no soft market in near term: Glaser

Marsh McLennan logo with Glaser NYC background.jpg

Marsh McLennan has hired 5,000 staff in the past year to target growth in attractive market conditions and sees no prospect of a soft market in sight, according to CEO Dan Glaser.

The broker has upped its headcount by more than 7% in predominantly client-facing roles and expects the influx of talent to drive growth and capabilities in the business.

Glaser said hiring sophisticated talent was “expensive” but worth it, considering the opportunities in the market.

He said he anticipated market conditions would not revert towards soft conditions,, with factors that drove previous hardening still at play.

“Many of the factors that drove the market to harden over the last few years continue, suggesting an inflection to a soft market is likely in the near term,” the CEO said.

Glaser was speaking on a call with analysts after Marsh published another stellar set of earnings for the third quarter that included 13% organic growth for the broker.

He gave an update on pricing conditions ahead of the publication of Marsh’s quarterly pricing index.

Price increases across commercial P&C rose 15% in the quarter, the 16th consecutive quarter of pricing growth.

Property prices were up 9%, while financial and professional lines prices grew by 32%, largely driven by a hard market in cyber business, where prices were up 90% on average.

Marsh CEO John Doyle said “conditions remain pretty challenging” for clients and that insurance buyers were “frustrated”.

He said some clients were retaining more risk and that Marsh had been “pretty active” in creating captives.

“In some cases, of course, the market is forcing some of our clients to retain more risk,” he added.

Glaser said responsible investing, D&I and climate presented a significant growth opportunity for the business.

“These are all new areas of growth for us,” he said. “If you think about things like climate, which was probably not even considered by us 10 years ago, we think it is one of our major growth opportunities as a firm on a going-forward basis.”

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