Marsh has appointed Phil Parkinson as chief executive officer of Mercer UK, subject to regulatory approval. He is expected to assume the role in the coming weeks.
In the position, Parkinson will report to Pat Tomlinson, president and CEO of Mercer, as well as to Chris Lay, the current Marsh UK CEO. This reporting structure will change when Lisa Quest takes over as Marsh UK CEO on April 6.
As CEO of Mercer UK, Parkinson will be responsible for guiding the strategic direction and commercial performance of the company’s health and benefits, investments and retirement, and workforce and rewards divisions. He will also collaborate with Marsh leadership to deliver integrated risk, strategy, and people solutions to clients across the UK.
Parkinson succeeds Benoit Hudon, who is leaving the organisation to pursue other opportunities. The two will work together during a transition period to ensure a smooth handover.
His appointment comes at a time of significant change in the UK pensions and benefits consulting sector. The Pension Schemes Bill currently before Parliament proposes measures including the consolidation of defined-contribution “megafunds,” the introduction of a new value-for-money framework, and reforms to the defined-benefit surplus extraction regime.
In addition, all UK pension arrangements must be connected to the pensions dashboard by October 2026.
At the same time, employers are facing growing cost pressures. National insurance contributions increased from 13.8% to 15% in April 2025 following the Autumn 2024 Budget, while the threshold for payable contributions was reduced from £9,100 to £5,000.
Healthcare costs are also expected to rise. WTW’s 2026 Global Medical Trends report, published last year, forecast a 10.6% increase in UK healthcare costs in 2026, while data from Howden suggests the increase could reach 12%.
Mercer UK’s scale
Mercer reported global revenue of US$6.2 billion in 2025, representing an 8% increase compared with the previous year, according to Marsh’s fourth-quarter earnings release. The firm manages approximately US$692 billion in assets worldwide and is widely regarded, alongside WTW, as one of the largest benefits and HR consulting firms globally.
Mercer UK’s operations were reshaped in early 2024 when the firm sold its UK pension administration business. The business Parkinson now leads is more focused on advisory and investment services.
Parkinson joined Mercer in 2007 as an investment consultant based in London. He was appointed UK wealth business leader in 2022 and has since held several international leadership roles during his tenure.
The appointment is the latest in a series of leadership changes at Marsh, following Quest’s move into the UK CEO role after Lay’s retirement and the company’s rebrand from Marsh McLennan at the start of the year.
