Marsh inaugurates a fresh joint venture agency in Japan.

27 Oct, 2023

Marsh inaugurates a fresh joint venture agency in Japan.

Global brokerage leader Marsh has entered into a strategic partnership with MST Insurance Service, marking the creation of a 50-50 joint venture (JV) agency. The primary objective of this venture, named MST Marsh, is to provide highly specialized recommendations for corporate insurance coverage, particularly tailored to address the unique needs of businesses.

Marsh's decision to establish MST Marsh is a direct response to the recent upheavals in the insurance industry stemming from a price-fixing scandal. This collaborative venture will specifically target midsize to large companies with annual sales falling within the JPY30 billion to JPY200 billion range, equivalent to US$200 million to US$1.3 billion.

MST Marsh is poised to offer valuable guidance to companies not only concerning conventional insurance coverage, such as fire and liability insurance, but also pertaining to emerging risks like cyberattacks and supply chain disruptions. MST Marsh's Vice President, Katsutoshi Ikejima, emphasized their role in optimizing insurance for companies by rectifying undercoverage or excess coverage, stating that there is a significant demand for such services.

Remarkably, despite the advantages of the broker model, it has failed to gain substantial traction in the Japanese insurance market, constituting only about 1% of the overall market share. Marsh's collaboration with MST, one of Japan's largest insurance agencies affiliated with a financial institution and boasting a longstanding relationship with MUFG Bank, seeks to capitalize on this untapped market potential. The joint venture's focus on customized corporate insurance solutions is expected to resonate with businesses facing evolving and complex insurance needs.