Marsh launches insurance facility for US freight brokers

NEW YORK - Insurance broker Marsh, a business of Marsh McLennan (NYSE:MMC), a prominent player in the insurance industry with a market capitalization of $101.8 billion, announced Wednesday the launch of BrokerSafe, a new insurance facility designed to provide US freight brokers with more stable and affordable auto liability coverage. According to InvestingPro data, the company has demonstrated strong revenue growth of 9.2% over the last twelve months, reaching $25.8 billion.

The facility offers up to $5 million in primary limits, with an additional $5 million in excess capacity available from the London market. It is backed by a panel of A-rated US insurers. InvestingPro analysis shows Marsh McLennan maintains a "GOOD" overall financial health score, suggesting strong operational stability. Discover more insights about MMC and 1,400+ other stocks through comprehensive Pro Research Reports.

BrokerSafe utilizes an underwriting technology tool developed with Oliver Wyman, another Marsh McLennan business. The tool employs advanced analytics and proprietary algorithms to assess a freight broker’s contingent auto liability risk exposure.

According to the company’s press release, freight brokers face significant contingent auto liability risks due to their intermediary position in the supply chain. The industry has been challenged by rising liability rates, a shrinking insurance market, and increased nuclear verdicts.

"With BrokerSafe, Marsh and Oliver Wyman are transforming the freight broker auto liability insurance market by providing clients and underwriters the data and insights they need to make informed risk transfer decisions," said Janelle Griffith, US and Canada Logistics Practice Leader at Marsh.

The technology enables insurers to offer coverage based on a broker’s actual risk profile rather than traditional underwriting methods that rely on broker-carrier agreements or revenue figures.

Marsh describes itself as the world’s leading insurance broker and risk advisor. Its parent company, Marsh McLennan, operates across 130 countries with annual revenue of over $24 billion. The company has maintained dividend payments for 55 consecutive years, with a current dividend yield of 1.76%. Analysts have set price targets ranging from $192 to $258, reflecting varied outlooks on the company’s growth potential. For detailed financial analysis and more exclusive insights, visit InvestingPro, where you’ll find additional ProTips and comprehensive metrics.

In other recent news, Marsh & McLennan Companies Inc. reported its second-quarter earnings for 2025, surpassing Wall Street expectations with an adjusted earnings per share of $2.72, compared to the forecasted $2.67. The company’s revenue reached $7 billion, slightly higher than the anticipated $6.94 billion. This positive earnings surprise highlights the company’s strong performance amidst macroeconomic uncertainties. Additionally, Jefferies raised its price target for Marsh & McLennan to $229, up from $227, while maintaining a Hold rating, noting the company’s metrics remain on track to achieve guidance. Meanwhile, Raymond James reiterated its Outperform rating with a $240 price target, expressing a positive outlook despite industry headwinds. The firm emphasized Marsh & McLennan’s middle market business exposure as a key strength compared to competitors. These developments reflect analysts’ confidence in the company’s ability to navigate current challenges.

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