Mass Tort and Complex Liability Solutions

Marsh USA

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Published: 12-Aug- 2011 | Product Category: Risk Consulting | Comments: 0

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Many organizations face mass tort and other complex liabilities that can significantly affect their financial outlook. Allegations surrounding such liabilities can span decades and include “long-tail” exposures involving asbestos, pollution, medical devices/pharmaceuticals, product liability, chemicals, construction defects, or sexual misconduct, among others. Marsh Risk Consulting (MRC) helps companies maximize insurance recoveries, avoid costly litigation with insurers, and mitigate the negative financial effects of these liabilities.

Service Highlights

MRC provides solutions to help you understand, assess, and manage mass tort and other complex liabilities. From research and analysis of current and historical coverage to data archiving, loss allocation modeling, insurer negotiation and broader insurance asset recovery assistance, and analysis of potential insurance recoverables for financial reporting and transactional due diligence, we offer exceptional expertise to help you handle all aspects of these matters.

Global Insurance Archeology

Historic liability insurance policies frequently offer protection from the negative financial impacts of mass tort and other complex liability claims. Yet organizations are often unable to locate their historic policies or otherwise document this valuable coverage. MRC can help you identify historical insurance assets dating as far back as the 1940s that can potentially total hundreds of millions of dollars in coverage. With extensive insurance contacts and access to the largest broker archive in the United Kingdom, we also provide London market insurance research.

Our services include:

Research and internal reviews of historic corporate records and archives
Interviews with current and former personnel such as risk managers, corporate counsel, and records managers as well as former brokers or brokerage personnel who may have knowledge about a particular account
Research relating to law firms, government entities, accounting firms, or other outside sources that may have retained important evidence of insurance
Contact with insurers to coordinate research for additional policy documentation
Specimen policy form research to locate standard terms and conditions for policies supported only through secondary evidence

Policy Analysis, Coverage Graphs, and Electronic Archiving

We provide comprehensive analysis of historical insurance information along with policy charting and electronic policy archiving using our proprietary, Web-accessible application—Insurance Coverage Explorer (ICE). These services assist in pursuing insurance recoveries and valuing insurance receivables and can be used in connection with bankruptcies, transactional due diligence, strategic planning, settlement, and financial reporting. We help you:

Determine the scope and extent of your historical insurance assets
Analyze insurer solvency to determine potential asset impairment
Electronically archive, organize, and access current and historical insurance policies via the Internet
Analyze coverage triggers and policy exclusions

Loss Allocation Modeling and Strategic Recovery Solutions

Building upon analytical results, we prepare and present complex models to assist in determining the optimal way to allocate losses to the potentially triggered policies.

We will then use our institutional knowledge of global insurance markets and access to key decision makers to assist in efforts to obtain insurance recoveries that can help cover defense, settlement, and judgment costs. We also offer analyses of insurer solvency and recovery from insolvent insurers as well as those involved in schemes of arrangement. Our experience in negotiations with insurers can help you achieve favorable results without the need for costly and time-consuming litigation. If litigation becomes necessary, we assist legal counsel in their analysis and preparation of litigation strategies, aggregate erosion, and data collection and maintenance.