Navigating the Future of Automotive Insurance

Q: What sets Marsh Mexico apart from other insurance and risk management companies operating in the country? 

A: Our value proposition is exceptionally comprehensive, covering over 100 products and services. Our main priority is identifying clients' true needs and delivering tailored solutions. By focusing on specific industries, we set ourselves apart from the competition, constantly developing our expertise to ensure the best possible service. Our advisory team is equipped to handle a wide range of topics, such as clients' risk tolerance, total cost of risk, risk finance optimization and risk management, even for uninsurable risks, which is crucial for our clients. 

Marsh also manages employee benefits, including wellness and talent management. Moreover, our specialized team, Specialites, handles specific industries like power and energy, trade credit, marine, aviation and agribusiness. We pride ourselves on our ability to customize solutions that fit our clients' unique needs.

Q: What factors have contributed to Marsh's success in becoming a main player in the multiple industries it works in? 

A: We play to win and empower people. We have the best talent in the Mexican market, without a doubt. Our focus on specific industries gives them the opportunity to become true experts who speak the same language as our clients. This allows us to find solutions that meet both the client's needs and those of the industry in general, as there are often common challenges that clients within the same industry face. 

Insurance is an experience-based industry. Marsh has a responsibility to society to help with insurance issues, as it can protect individuals and provide useful benefits.

Q: What are the main risks that Marsh is considering in its analyses for 2023?

A: One of the biggest risks we face is the economy. We are all concerned about the warning signs. We work with the World Economic Forum to publish a global risk report every year. The main risks identified globally for the next two years are a cost-of-living crisis, natural disasters, geopolitical confrontations and ESG issues. In the next 10 years, the main risks identified by our interviewees are related to nature, such as climate change and its social risks, the loss of biodiversity and damage to entire ecosystems. Marsh, as well as the world, is concerned about ESG issues. As a company, we are also committed to taking care of the environment. 

Q: How is Marsh leveraging digital technologies to offer more innovative and personalized products?

A: The insurance industry has been considered a late adopter of technology but we are now witnessing growing penetration in Mexico and abroad. We are creating apps and integrating robots and chatbots into our operations. These technologies will enable us to provide more efficient services to our clients. For example, in the auto insurance sector, we have seen tests with a decrease in connection time between customers and insurance companies, from 8 minutes to 3 minutes, after introducing chatbots. The industry will continue to embrace technology and we are committed to being a part of this transformation.

Q: How is Marsh assisting the constantly evolving automotive industry?

A: The industry is undergoing a significant transformation and adopting the connected, autonomous, shared and electric (CASE) strategy. Marsh plays a role in bridging the gap between the insurance and automotive industries, which will involve innovative automotive products that have not been considered by insurers before. Marsh must stay at the forefront of the sector because risks are evolving. For example, with the emergence of electric vehicles, there are new risks associated with lithium batteries in the event of an accident, as well as the potential pollution they could cause. There is also a growing interest in pay-as-you-drive and pay-how-you-drive models that will eventually reach Mexico. 

The automotive industry is striving to establish its position in the mobility sector as services like Uber and DiDi gain traction. In major cities, younger generations are choosing autonomous and electric vehicles for transportation, presenting new challenges in terms of insurance coverage.

Q: What strategies is the company implementing to increase employee engagement and retention?

A: The pandemic modernized the industry. As we return to work, flexibility is a key focus. We no longer come to the office every day; it is three days in the office and two days at home. We are also providing more vacation days than what is required by law, including five flexible days for employees in addition to regular vacation time. We also offer one month of paternity leave and flexible days for mourning the death of a close family member.

We have been recognized by HRC Equity MX for two years in a row as an LGBTQ+ equity company. We have also been recognized as a socially responsible company for over 10 years and are at the highest level in the Wellness Council. We also have a pay equity project for women, with over 50% of our employees being women. We strive to have more women in leadership positions and prioritize inclusion.

Marsh is a global insurance broker and risk manager. It is active in over 130 countries and provides services for multiple industries. In the automotive sector, it works with financing groups and dealership associations.