The Client and Its Challenge
Following the events of September 11, 2001, a major financial services institution found itself with a number of buildings either destroyed or damaged, its IT capabilities a shambles, and its operational capabilities severely limited. Furthermore, given the institution’s significant role in financial markets, regulators were monitoring it closely, as they expected it to be up and running in a matter of days, regardless of the losses incurred.

The institution focused intensely on becoming operational again, which required finding new facilities and a new computer infrastructure. This was no easy task, as many other companies were facing a similar situation, creating severe pressures on space and office equipment availability.

Given the size and nature of this catastrophic event, and the scramble to recover from it, the risk manager was unsure where to start. However, there was recognition that the institution needed to begin the process of documenting its losses and the expenses related to relocation and reorganization. Most importantly, it needed to understand what was actually covered by its insurance policies.

Already a client, this financial services institution sought out the support and expertise of Marsh. The risk manager and senior executives were seeking someone who could provide an accurate assessment of its losses and the existing coverage, help with documentation, coordinate key players within the financial services institution and the insurance carriers, and support recovery negotiations.

The Risk Consulting Solution
The work was referred to the Claims Consulting practice within Marsh. The consulting team worked closely with the risk manager, the business continuity team, and the most senior executives to sort out the facts about the client’s evident and possible future losses. At this stage, it was clear there were facility losses, major IT losses, and financial impacts beyond just the client itself.

In addition to such consultations, the Marsh team reviewed insurance policies, determining what was covered and what exceeded coverage, and the requirements for making a claim. The team then helped the client to document its losses.

Given the client’s already stretched resources, the Marsh team acted as the coordinating hub between the client and the insurance carriers. The Marsh team helped the client to create an internal team covering all aspects of the loss — facilities, finance, information technology, etc., which the insurance carriers paralleled. This facilitated dialogue between the client and its carriers and made the entire claims process much more efficient.

The Marsh team also succeeded in convincing the carriers to appoint two adjusters to this case and to meet with the client’s senior executives. Furthermore, given all the reorganization that was necessary in the early days after 9-11, Marsh persuaded the adjusters to wait several weeks before beginning their work.

Results
Out of chaos and loss, came order and recovery. With the support of Marsh, the client succeeded in making a recovery of nearly $700 million in claims. The team also provided the client with a highly organized and structured process for managing claims of an extreme nature, as well as for less devastating ones. As a result of this assignment, the relationship between the client and Marsh was further strengthened, with Marsh becoming the leading advisor to the client.