Marsh will charge between 1% and 2% to insurers for its services, it was announced today. The brokerage will also slash 750 jobs from its UK branch.

Contingent commissions will be replaced by “clearly structured premium discounts of between 1% and 2%”, a statement said.

“Each of Marsh's clients in the UK will know exactly what Marsh is earning on its account, and exactly what work Marsh has carried out in respect of those earnings,” a statement said.

For services provided to Lloyd's a service charge of 0.75% has been agreed.

The drive to improve efficiency and bring down costs, it said, would result in the loss of 750 UK jobs.

The company will also restructure its regional operations with the creation of “regional centres of excellence”.

Marsh Europe chief executive Bruce Carnegie-Brown said: “There is much work still to be done, but I believe what we have announced today represents a comprehensive approach to making our firm even more client focused and more efficient.”

Topics