Financial And Professional Liability Practice (FINPRO): Broad Views, Better Solutions

Regulatory uncertainty. Crippling cyber-attacks. Interconnected global risks. Changing geopolitical landscape. Companies, directors, officers, and senior leaders face extraordinary risks in today’s business environment. While some risks have evolved, others are new, and many may be just around the corner. Regardless of where on the spectrum your risks are, the frequency and severity of losses have reached unprecedented levels. It is increasingly common for major claims to result in multi-million dollar settlements and defense costs. And we are seeing more claims that cannot be indemnified by the company, thus leaving the personal assets of directors and officers exposed.

To manage these risks, consider the following:

• Are your insurance limits sufficient?
• Are coverages and exposures aligned?
• Are the personal assets of your directors and officers safe? 
• What are the risks as your company expands internationally? 
• Will claims get paid?
• Are you efficiently transferring your cost of risk?
• Are your programs optimized for the future?

Marsh’s FINPRO Practice is committed to developing risk solutions and services to help you answer such questions and ultimately make you more successful. Creativity, innovation, and ongoing investment in analytics are our hallmarks. Across several industries and sectors, we can deliver technical expertise, knowledge of legal and regulatory trends, specialized claims advocacy services, and deep access to insurers — all to help you develop and implement a risk management program tailored to your risk issues.

Insurance and Risk Management Services and Solutions

Analytics
Comprehensive data and analytical tools can help you understand your organization’s exposures to a variety of risks. Marsh’s FINPRO analytical modeling provides key statistical and actuarial data points using award-winning technology platforms that can help you make informed risk management and insurance purchasing decisions. Our suite of analytical tools include:

• Proprietary benchmarking: Compares premiums, limits, retentions, and other program elements against peers to better understand risks and ensure the most cost-effective risk management program. 
• D&O IDEAL model: Provides predictive information to help analyze the frequency and severity of D&O settlement outcomes in securities litigation — typically the largest exposure for directors and officers. 
• Cyber IDEAL model: Quantifies the likelihood that a company will incur a breach and its potential severity, including defense costs and third-party liability, which can ultimately reduce the uncertainty surrounding a data breach. 
• D&O and cyber risk profile analysis: Provides a comprehensive and balanced assessment of selected management, industry, service, operational, and financial/risk mitigation characteristics that can affect insurance pricing and terms.

Claims Advocacy
Proactive claims advocacy can help drive fast and favorable claim settlements. Our claims advocates — who are involved before a claim occurs by reviewing and drafting relevant insurance policy wording — can help optimize your organization’s cash flow and maximize insurance recoveries for complex claims. Marsh’s best-in-class claims process includes:

The Claims Advocacy Continuum 
Unsurpassed technical expertise + Strong relationships with major insurers + Practical real-time claims experience = Optimal claims resolution.

Innovation
The evolving landscape of financial and professional liability often requires fresh approaches and innovative solutions. Marsh has consistently developed new solutions that focus on emerging client exposures, pioneered new ways of transferring and financing risk, and created new markets when risk capital was insufficient to meet client needs. 

Industry Centers of Excellence

In addition to FINPRO product specialization, we have taken a more focused approach to delivering value as defined by our clients and their industries. Marsh’s US FINPRO Industry Practice includes eight formal industry Centers of Excellence (COEs) with risk advisors that can address both historical and newly evolving risks. With a concentration of similarly situated clients, COE colleagues have already solved many unique challenges for organizations. 

Marsh’s US FINPRO Industry Practice also has specialized expertise in other industries such as higher education, chemical, and manufacturing. Product and industry specialization enables our colleagues to gain clear views into the macroeconomic, regulatory, and operational trends and issues faced by our clients. This helps inform how we approach today’s evolving risks so that we can deliver value through our offerings and proprietary solutions.

Multinational Focus

More organizations are focusing their attention on the potential opportunities in global and emerging markets. Marsh’s global footprint can help clients to properly assess, prioritize, and address their exposures, including foreign regulations, taxes, and indemnification factors.

Our multinational FINPRO team understands your company’s:

• Demographics. 
• Legal environment, including regulatory risks. 
• Indemnification needs. 
• Insurer licensing — admitted versus non-admitted. 
• Transactional issues, including taxation, local resources, and languages and customs.

The Marsh process is designed to be measured, replicated, tracked annually, and adjusted given different evolving factors such as acquisitions or expansion into new countries. This thoughtful approach can withstand scrutiny by internal stakeholders and external observers.