Frequently Asked Questions

Question 1
How much will insurance premium costs go down as a result of development of a global program?

Answer 1
The amount varies greatly depending on the subject risks, the insurance premium volume, past claim history, trends in the insurance market, and other factors. It is not possible to reduce costs in all cases, but our average result has been a cost reduction of 20% to 30% compared to before introduction of the global program.

Question 2
How long does it take to develop a global program?

Answer 2
It depends on the target countries, number of participating group companies, and other factors, and in some cases, development can take one year or more, but our average is approximately 6 months.

Question 3
How much are necessary costs other than insurance premiums?

Answer 3
In principle, costs other than insurance premiums (including specified agency fees and brokerage fees) are not incurred. There are cases where agency fees and brokerage fees are included or not included in the insurance premiums depending on the insurance systems in each country, but in both cases, payments are in principle limited to the scope of compensation normally paid for insurance handling,*2 and special fees are not added. If, however, risk surveys and other such services are desired during the global program design phase, separate fees will be incurred for those services.

*2. In some regions, insurance premium levels for local securities are extremely low, and when agency fees and brokerage fees do not satisfy the minimum compensation levels, separate agency fees and/or brokerage fees may be added in exceptional cases. Please consult with Marsh for further details.

Question 4
How much experience does Marsh have creating and operating global programs for Japanese global businesses where the control office is established in Japan?

Answer 4
Marsh has more than 20 years’ experience in the fire and loss of profit insurance, non-life insurance, and logistics insurance fields and has designed, operated, and managed more than 40 programs.