New Marsh Chief Returns To His Roots

Daniel S. Glaser, the new head of Marsh, says he returns to the company that gave him the foundation for his career with the intention of bringing the insurance brokerage giant back to its former glory.

“I spent the first years of my career at Marsh. I met my wife at Marsh. I'm concerned what happened to it and even though I'm realistic about the challenges that we face at Marsh, I've got a tremendous amount of optimism that we can put that right.” Mr. Glaser said in an interview.

Mr. Glaser, 47, had been managing director of American International Group Europe (U.K.) Limited and the regional president of AIG's American International Underwriters, United Kingdom/Ireland division. Next Monday he becomes chairman and chief executive officer of the insurance brokerage firm Marsh, which he first joined in 1982.

“I'm very excited about it,” he said, noting that the courtship to take the position was not long. “I'm really chomping at the bit. Monday can't come soon enough.”

After spending a decade with Marsh, he moved onto Willis before joining AIG.

On Monday Marsh & McLennan, the parent company of Marsh announced Mr. Glaser would be its new CEO replacing Brian Storms who left in September.

His leaving AIG had nothing to do with that company, but he says he has an overriding desire to return from where he started.

“I've been training for the Marsh job for my entire life,” he said. “It is the absolute premier brand in insurance broking. It is a great franchise and has a strong nucleus of talented people and terrific clients.”

Since MMC gave up lucrative contingent commissions in 2005 to settle a suit brought by New York's attorney general over allegations the firm engaged in steering contracts in return for kickbacks, the brokerage firm has struggled with profitability.

Mr. Glaser understands there are obstacles to returning the firm to making a profit, and he believes it is something he is up to.

“Yes, we have some challenges, which probably at the end of the day is why I took the job,” he confessed. “I think I can get in and work with the executive team and figure out the kinds of things we need to do to serve the customers better.”

He said it is too early to talk about specifics but the answers, he believes, will be centered on taking care of the firm's clients.

“We have to figure out who is a client, what does the client value, and what do we do that the client doesn't value, which are basic business 101 types of questions that will serve Marsh well,” he said. “I will tell you that our strategy will ultimately be geared to serving clients.”

He added that attention also needs to be paid to the people who service the client and the proper tools need to be put in place to do that; “Marsh leadership will serve them and not the other way around.”

He said the firm will work on the basics, making business less complicated and getting back to what it takes to retain clients and designing the revenue stream around that.

“The world is full with complicators. I would work very hard to reduce complexity,” he said.

On the issue of contingent commissions, Mr. Glaser said he is pained to see “the un-level playing field that exists” adding, “there should be some basic rules of the road” that everyone in the industry follows.

But he also believes in complete transparency and disclosure, saying it is “at the heart of any compensation arrangement. Anything we do will not challenge that fundamental principal, and at the end of the day, the customer will determine what our earnings will be.”