Chinahrp.com Shanghai, 13 August 2008 Mercer, one of the world’s leading providers of consulting, investment and outsourcing services, and its joint venture company, the Shanghai Mercer Insurance Brokers Co., Ltd. (SMIB) today announce that it has obtained approvals from the China Insurance Regulatory Commission (CIRC) to officially establish three branch offices in Shanghai, Beijing and Guangzhou.
Incorporated in 2006 after the approval of a brokerage license from CIRC, SMIB is part of Mercer Health & Benefits business in China that offers a comprehensive range of integrated services in health and benefits consulting, insurance broking and benefits administration for corporate clients and their employees. Since then, SMIB has grown significantly to become one of the largest employee benefits brokers in China serving over 200 clients, representing over 200,000 employees.
Mercer’s head of Heath & Benefits for Asia Pacific, Ms. Rosaline Chow Koo said that the business is experiencing rapid growth, doubling every year since SMIB’s inception.
“Thanks to Mercer’s solid existing client base and client referrals, as well as an increased number of multinationals expanding their geographic presence in the Asia Pacific region, demands for Mercer’s advice are growing. With every workforce within a company, the need to attract and retain talent is tremendous, and the employers of choice are those who deploy competitive benefits as a differentiator to win the war on talent,” Ms. Koo said.
She continued, “At Mercer, we are committed to expanding and growing our business regionally and globally and China presents a huge potential. In fact, business is growing so fast in the areas of heath and benefits that we estimate in three years time, Mercer’s Health & Benefits business in this market will break the $US10M revenue barrier and we will have over 100 staff serving over one million corporate employees.”
China embraces innovative and integrated benefits solutions
With China experiencing such phenomenal economic growth in the past couple of years, there are significant growth opportunities for Mercer’s Health & Benefits business.
Mercer’s Head of Health & Benefits for Greater China, Mr. Henry Wong said, “Our growth in China is testament to the leadership of Jeffrey Fan and the team who have all worked hard to help Mercer clients in China navigate through the complex issues of employee benefits and healthcare facing their workforces,”
Mr. Wong added, “Through flexible benefit programs, Mercer has helped companies and organizations achieve employer branding, optimize and harmonize their benefits offering, and effectively engage employees. For Mercer, this is a very rewarding legacy to be creating.”
The insurance market in China
The group insurance market in China also offers ample potential for growth in premiums and fees as the market has been experiencing double-digit growth for years. Commercial health insurance represents less than 10% of total healthcare spending in China and over 50% of the healthcare cost is borne by individuals in the form of out of pocket expenses. The government is expanding social medical insurance in both urban and rural areas in an effort to eventually achieve a universal level of basic healthcare coverage for all Chinese citizens. However, entitlement under the social medical scheme is expected to remain low for many years due to insufficient funding and the need to move towards universal healthcare. Development in commercial insurance is critical in order to optimize healthcare protection and treatment, minimize catastrophic risks for individuals and families, and help ensure a stable and harmonious society.
About Mercer
Mercer is a leading global provider of consulting, outsourcing and investment services. Mercer works with clients to solve their most complex benefit and human capital issues, designing and helping manage health, retirement and other benefits. It is a leader in benefit outsourcing. Mercer’s investment services include investment consulting and multi-manager investment management. Mercer’s 18,000 employees are based in more than 40 countries. The company is a wholly owned subsidiary of Marsh & McLennan Companies, Inc., which lists its stock (ticker symbol: MMC) on the New York, Chicago and London stock exchanges. For more information, visit www.mercer.com.
