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Marsh & McLennan's (MMC) Unit Launches New Digital Offering

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Mercer, a wholly owned affiliate of Marsh & McLennan Companies, Inc. (MMC - Free Report) recently announced the launch of Mercer Digital. This new initiative aims at offering creative and tested approaches for digital organization and workforce solutions to empower organizations for the workforce and workplace of the future. Mercer Digital will help organizations transition to a digital future.

In the present scenario, where organizations are looking forward to bringing a completely digitized working environment, surveys show that only 7% of executives globally consider their organization to be digital.

According to “Mercer’s 2017 Global Talent Trends research”, executives expect technological disruption and enablement to impact their organizations significantly over the coming two years. At the same time, they also accept that they lack the urge to get infrastructural preparation for the upcoming technological shift which might put the life of their businesses at risk.

In this situation of crisis, Mercer’s efforts look encouraging. As a global consulting leader in advancing health, wealth and careers, Mercer holds world-renowned expertise in data and technology. It is also a global consulting leader in the areas of talent, health, retirement and investments.

Mercer Digital’s capabilities extend across the full value chain from digital strategy to organization design, workforce change, and ultimately, enabling the workforce of the future through technology.

Management of Mercer assures that capabilities of Mercer Digital will be advanced through new technologies and relevant partnerships, keeping pace with global digitization in working environment.

Marsh & McLennan and its subsidiaries have always remained proactive in making investments in technological upgrades in order to stay competent globally. Year to date, the stock has gained 15% compared with the 14% rally of the Zacks categorized Insurance Brokerage industry. This recent initiative is likely to enhance shareholders’ value further in terms of boosting operational excellence.

The launch of Mercer Digital follows a number of significant developments which would pave the way for the transformation of the workforce. These include the acquisition of CPSG Partners that would facilitate Mercer in transforming their HR and finance businesses. The buyout of Thomsons Online Benefits would enable multinational employers to offer a common yet locally tailored employee benefits platform that delivers the latest in engagement, design, analytics and administrative efficiency and support.

The acquisition of Sirota Consulting is expected to strengthen Mercer’s consulting power and capabilities in talent management by including a full array of employee engagement solutions.

In addition, an investment in Talent Tech Labs would provide Mercer a front line view of the most promising new firms and emerging technologies in talent acquisition. Lastly, a strategic alliance with Career Arc would offer social, on-demand transition services for today’s workforce via social recruitment and virtual outplacement.

These inorganic strategies are expected help Mercer implement cloud-based technologies that enable digital organization design.

Zacks Rank and Stocks to Consider

Marsh & McLennan currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the insurance industry include Reinsurance Group of America, Incorporated (RGA - Free Report) , Cigna Corporation (CI - Free Report) and FBL Financial Group, Inc. . Each of the stocks carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Reinsurance Group deals in reinsurance business. The company delivered positive surprises in three of the last four quarters with an average beat of 5.08%.

Cigna provides insurance plus related products and services in the United States and internationally. The company delivered positive surprises in three of the last four quarters with an average beat of 1.35%.

FBL Financial sells individual life insurance and annuity products. The company delivered positive surprises in two of the last four quarters with an average beat of 1.98%.

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