Marsh & McLennan (MMC) Unveils AI Tool for Operational Efficiency
Marsh & McLennan Companies, Inc. MMC, along with its global management consulting arm, Oliver Wyman, introduced the Generative AI tool, named LenAI. The tool was devised by the Dublin Innovation Center of MMC. The digital unit of Oliver Wyman, Oliver Wyman Digital, also extended a helping hand to the center. As a result, LenAI can be presently utilized to ease the work of MMC’s 85,000-plus colleagues across the globe.
The newly launched tool is built with the power of Microsoft’s MSFT innovative technologies, which made the deployment of a private internally-hosted version of foundational models of OpenAI (an AI research firm) possible. The models assure in-house data storage.
Additionally, the privacy, compliance, risk management, information security and legal teams of Marsh & McLennan worked to devise the tool in order to make sure that it complies with MMC’s stringent data security standards. It supports minimal retention of data, which paves the way for greater operational efficiency and lower costs. The tool also provides the necessary guidance to its users on its proper usage and takes legal considerations into account that enable LenAI to access the allowed data.
Therefore, the tool can fetch widespread benefits to the colleague and client base of Marsh & McLennan. In addition to the advantages that AI models usually provide, LenAI is infused with various other lucrative features that provide correct calculations and important outputs. The added benefits include the ability to browse the Internet, work on an extensive range of documents and derive data from high-quality publications. This, in turn, is expected to boost productivity and ease intricate processes for MMC’s colleagues, thus empowering them to cater to clients more effectively.
And as expected, the tool has been found to be beneficial to early users at Oliver Wyman, who reported saving eight hours on an average per week. They also stated having to spend 20% less time on simple and recurring tasks.
Apart from increased operational efficiencies, an expanding customer base intrigued to avail such beneficial tools may also be the resultant benefit of the new launch for MMC. The latest move also bears testament to Marsh & McLennan’s sincere efforts to upgrade its digital capabilities and seems time opportune, considering the widespread adoption of AI among organizations.
The Oliver Wyman unit remains quite active in leveraging AI technologies to enhance the client experience. Last year, it introduced the Edge platform for providing clients with a seamless and cost-effective opportunity for constructing a digital bank or insurance platform, which would reach the market within a short period of time. The platform is powered by Banking-as-a-Service and Insurance-as-a-Service solutions.
In line with the Oliver Wyman unit, the other three businesses of MMC — Mercer, Marsh and Guy Carpenter — also follow a strategy of enabling clients avail the benefits of AI and equipping them to address the risks that often crop up due to the usage of such in-demand technologies.
Shares of Marsh & McLennan have gained 16.7% in the past year compared with the industry’s 13.7% growth. MMC currently carries a Zacks Rank #2 (Buy).
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Other Stocks to Consider
Some other top-ranked stocks in the insurance space are Erie Indemnity Company ERIE and CNA Financial Corporation CNA, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Erie Indemnity’s earnings surpassed estimates in three of the last four quarters and missed the mark once, the average surprise being 10.03%. The Zacks Consensus Estimate for ERIE’s 2023 earnings indicates a rise of 49.4%, while the same for revenues suggests an improvement of 13.5% from the respective prior-year tallies. The consensus mark for ERIE’s 2023 earnings has moved 12.4% north in the past 30 days.
The bottom line of CNA Financial outpaced estimates in three of the trailing four quarters and missed the mark once, the average surprise being 9.24%. The Zacks Consensus Estimate for CNA’s 2023 earnings indicates a rise of 14.8%, while the same for revenues suggests an improvement of 10.6% from the respective prior-year tallies. The consensus mark for CNA’s 2023 earnings has moved up 2.8% in the past 30 days.
Shares of Erie Indemnity have gained 4.4% in the past year, while the CNA Financial stock has declined 2.2% in the same time frame.
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