7th Post- Career Paths

Marsh & McLennan will offer a lot of experience in the business world. The Marsh & McLennan internship offers exposure to the insurance industry through learning and observing. Their sales department will take advantage of the internship program by having the interns do research on potential clients using LinkedIn and Salesforce. The internship program will also be assisting the Marsh & McLennan administrative staff by helping out with clerical and administrative tasks around the office.

The internship at Marsh & McLennan will offer an in-depth sample about the kind of insurance and risk-management work they do. The internship sponsor and leader will allow the interns accompany him to two extremely large and key insurance companies that are essential to Marsh & McLennan running smoothly. The interns will also be attending client meetings and events with the sponsor to see how events are run in the corporate world. Experience at a large and reputable insurance and risk-management firm like Marsh & McLennan will be invaluable to the interns and people involved in the internship program. Working at Marsh & McLennan will look very good on a resume, which will help the interns with future employment options. It will also give the interns some exposure to the insurance industry and see if that is something they want to pursue in their careers.

I am planning on studying agricultural business in college next year, so this internship could be a nice doorway and trial to see if I would want to work in agricultural insurance. To work in agricultural insurance, one must know a lot about the earth and its geography and science, and how that can affect farms or forests. One must also have a lot of knowledge about the insurance and risk management industries. By merging these two, I could have a very interesting and important career doing something I potentially love.

Essential Question

How do the various components of a financial management company function cohesively in order to service their clients?

6th Post- Associated Controversies

When a large business like Marsh & McLennan has been open for over 100 years, it’s hard to keep a perfect track record. Within the last few decades, Marsh & McLennan has only had one large controversy, which happened in 2004 with Attorney General Anthony Spitzer. Attorney General Spitzer had been targeting the mutual fund industry for unlawful practices, but once he started focusing on fraud in the insurance industry, h e announced that he had “found widespread wrongdoing”, and Marsh & McLennan was named as one of these “wrongdoing” companies.

Marsh & McLennan was accused of “civil fraud allegations that it steered business to insurance companies in exchange for lucrative payoffs”. They were also accused of “fraud, securities fraud, and antitrust violations, and common law claims for fraud and unjust enrichment”. Marsh & McLennan agreed with Attorney General Spitzer to pay a settlement of $850 million over from 2005 to 2009 to “clients nationwide who were allegedly harmed or misled by Marsh's actions”.  By spreading these payments out, Marsh & McLennan did not have to borrow any money nor did they suffer any financial setbacks in their business doings.

Though Marsh & McLennan did not admit guilt for misleading their customers, they apologized that members of their company “unlawfully deceived their customers”. According to the Chicago Tribune, “The apology was included in the New York attorney general's news release but not in Marsh's. Because the apology is limited to a few people at the company, it does not constitute a formal admission of corporate guilt, Marsh officials said. That distinction will limit future litigation, analysts said”. This was a smart move of Marsh & McLennan, as it ensures that their entire company will not be blamed for the wrongdoing of a supposed few.

Sebok, Anthony J. "Spitzer's Controversial Insurance Lawsuit." CNN. CNN, 1 Nov. 2004. Web. 
"Marsh & McLennan to Pay $850 Million in Settlement." Tribunedigital-chicagotribune. Chicago Tribune, 01 Feb. 2005. Web. 19 Apr. 2016. 

5th Blog Post- Global Perspective

As an insurance and risk management company, Marsh & McLennan’s modus operandi is being globally aware of their impact on the earth. In fact, on their homepage they advertise their awareness by saying: “we recognize complex risks are increasingly interconnected, with the potential to accelerate as they grow”. Marsh & McLennan even publish global risk reports, with the latest one and 11th issue being published in 2016. In these reports, Marsh & McLennan studies “disruptive shifts in technology, geopolitics, societal expectations, and economic patterns are creating instabilities that are directly impacting events in the world today” in order to make a positive global impact on the world.

Marsh & McLennan use “quantitative analysis of historical data” and use statistics from the World Economic Forum in Geneva to analyze data to be an efficient risk insurance and calculation company. They study the likelihood of ‘disasters’ and the impact that those ‘disasters’ would have on the world. The word ‘disasters’ in this context refers to any kind of man-made or natural catastrophes, from “large scale involuntary migration” or “asset bubbles”. These ‘disasters’ are put into five categories: economic, environmental, geopolitical, societal, and technological. Using this data, Marsh & McLennan can create the best risk insurance policies they can.

Marsh & McLennan have access to tons of data about the world, but perhaps what is one of the most interesting statistics they have access to is “a regional perspective...of global risks”. This means that they know what risks each regional area is “most likely” susceptible to. For example, North America is at a higher risk for cyber attacks, data fraud or theft, and extreme weather events. Sub-Saharan Africa, however, is more susceptible to failure of national governance, unemployment or underemployment, and failure of critical infrastructure. Throughout the world, the most common risks are: failure of national governance, extreme weather events, and the most common risk is unemployment or underemployment. Interestingly, the only place on earth where large risks are technological is in North America.

Strategic Partner Of The Global Risks Report 2016. (2016): 1-103. The Global Risks Report, 2016. World Economic Forum, 2016. Web. <https://www.mmc.com/content/dam/mmc-web/Global-Risk-Center/Files/world-economic-forum-global-risk-report-2016.pdf>.

"Global and Emerging Risks." Marsh & McLennan Companies. N.p., n.d. Web. 19 Apr. 2016. <https://www.mmc.com/global-risk-center/overview/grc-global-and-emerging-risks.html>.

4th Blog Post- Relevant Points of Interest throughout History

Throughout the 145 years that Marsh & McLennan Companies have been running, they have been involved in and inspired by events in history. In fact, Marsh & McLennan Companies would not even exist without the 1971 Great Chicago Fire. Many properties and companies lost everything in the fire, and had no way of receiving compensation for their lost properties and homes. Marsh & McLennan Companies, then named the Dan H. Bomar Company, capitalized on this opportunity and began a new business venture entitled “risk management”. The Dan H. Bomar Company was a success, taking the business of Northern Pacific and Great Northern Railroads and becoming the world’s largest insurance broker.

Marsh & McLennan Companies braved the Great Depression, and managed not to let any of their workers go. The company left the 1930’s strong, and began working “government defense programs and serve[d] as a resource for clients involved in large defense projects” during World War II in 1945. After the war, Marsh & McLennan Companies focused on “increasing consumer credit” and creating contracts with the newly booming automobile industry. The newly-created automobile industry was full of unprecedented risks, and Marsh & McLennan Companies tried to predict these risks and protect the companies and people involved. Marsh & McLennan Companies also “develope[d] insurance products for home appliances, cars, and the banks that help[ed] to fund Americans’ new purchases”.

The most tragic event in history that Marsh & McLennan Companies have ever been involved in were the terrorist attacks on 9/11. Marsh & McLennan Companies had eight floors of business in the North Tower of the World Trade Center. When the hijacked flight flew into the World Trade Center, Marsh & McLennan offices were directly hit, killing everyone inside. 295 workers and 63 business associates were instantly killed in their offices. It is without a doubt the darkest day in company history. Marsh & McLennan Companies says that: “The profound loss of [their] colleagues will always be a part of the Company’s history”.



Source:

"MMC At A Glance." MMC At A Glance (n.d.): 1-20. Marsh and McLennan Companies. Web. <https://www.mmc.com/content/dam/mmc-web/Files/MMC%20At%20A%20Glance%20Brochure_V47_for%20web%20viewing.pdf>.