Marsh Japan is set to acquire Mitsubishi Electric’s in-house insurance agency, Mitsubishi Electric Insurance Service Co. Ltd., with the deal expected to close on November 4. While the financial details of the transaction have not been made public, the move marks a significant shift in how Mitsubishi Electric handles its insurance services.
Mitsubishi Electric Insurance Service has been around since 1999. It mainly serves Mitsubishi Electric’s group companies by offering commercial insurance products and also provides personal insurance options to employees and their families. Marsh Japan, on the other hand, is a well-established player, having operated in Japan since 1955 as part of Marsh LLC, a global insurance broker under Marsh McLennan.
Mitsubishi Electric decided to sell its in-house insurance agency in order to focus on strengthening its overall business. The company believes that joining forces with Marsh Japan will offer better long-term opportunities, especially given Marsh’s wide global expertise in insurance.
The insurance service mainly deals with corporate risk management for Mitsubishi Electric’s group, handling a variety of insurance products. These include liability, property, cargo, workers’ compensation, commercial auto, umbrella policies, directors and officers insurance, as well as cyber coverage.
This deal follows a similar move earlier this year, when Aon Japan completed the acquisition of Mitsubishi Chemical Group’s in-house insurance agency. Aon now handles corporate and personal insurance for Mitsubishi Chemical Group’s companies and employees in Japan.
With Marsh Japan taking over, Mitsubishi Electric’s insurance needs will be managed by a larger, specialized brokerage, which could provide more options and expertise to the group. The acquisition shows a trend where large corporations are shifting away from managing insurance internally and turning to expert brokers to meet their complex insurance needs.