The Client and Its Challenge
Several months before renewal, this client, one of the nation’s leading financial institutions, released a request for proposal on all its insurance. Marsh met with the client to discuss its renewal goals and to determine whether the team could provide a solution that fulfilled all of its requirements. Their top three goals were to increase both business interruption (BI) and extra expense (EE) coverage limits to $250 million and to lower their premium.

Insurance markets found dealing with BI coverage and EE coverage within the financial industry difficult at best. Attempts to increase BI and EE limits had been unsuccessful in past renewals.

The Risk Consulting Solution
Aware of the work that the Claim Accounting and Preparation Services (CAPS) practice did for financial institutions following the World Trade Center disaster, Marsh was confident that its renewal goals could be met. However, this confidence carried with it one caveat — that the client provide Marsh with all necessary and timely access to its key business process owners. By meeting with the client’s appropriate line of business CFOs, Marsh was first able to identify, locate, and analyze the business units and physical locations with the largest exposures. Using historical financial information, Marsh prepared an anticipated maximum business interruption loss calculation for those key locations. This was accompanied by a comprehensive report explaining the process as well as the calculated values.

Results
Within the allotted four weeks, the Marsh team produced a six-page report that provided the insurance markets with the information needed to accurately and confidently comprehend and evaluate the client’s BI and EE exposures. Armed with this report, Marsh was able to negotiate increases in BI and EE coverage up to $250 million each, achieve a 20 percent premium decrease, and significantly increase the overall property coverage limit.