2696 ma10 10074 settlement and defense costs
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This document discusses Marsh Risk Consulting's services for analyzing and modeling the allocation of defense costs and settlements across multiple insurance policies for organizations facing complex liability issues. Their sophisticated allocation models can simulate how claim data will impact insurance programs based on various factors, and determine the financial impact of different allocation strategies. This helps clients determine the best approach for negotiations and develop settlement strategies. The models can be customized for situations involving numerous claims.
2696 ma10 10074 settlement and defense costs
- 1. Complex Liability Consulting Practice SETTLEMENT AND DEFENSE COST ALLOCATIONANALYSIS AND MODELING When faced with a challenging liability exposure, the Who its for: manner in which defense costs, as well as any settlements Organizations facing litigation or verdicts, are spread across the insurance policies at arising from: issue can have a tremendous impact on insurance Environmental contamination Asbestos exposures recoveries. Many insurance settlements simply cannot be Medical devices properly understood and valued without undertaking cost Construction defects allocation analysis/modeling. Catastrophic losses Sexual misconduct Marsh Risk Consulting (MRC) has Insolvent insurers Various other product and/or developed a series of sophisticated premises liabilities Applicability of aggregate limits allocation models that assist clients with the assimilation of complex claim Gaps in coverage What you get: data. The models enable us to simulate Treatment of defense costs An estimation of insurance how their claim data will impact their (e.g., in addition to policy limits, asset value available to offset insurance program(s) based on a within limits) current and potential future number of interrelated variables, liabilities Application of deductibles/Self- which frequently include the following: Insured Retentions (SIRs) A framework for analyzing positions taken by insurers Choice of law used to interpret the Relevant exclusions during settlement insurance contracts negotiations Applicable clauses/provisions (e.g., Vertical vs. horizontal non-cumulation, drop down) The ability to test the financial exhaustion impact of legal uncertainties Prior settlements with insurers Prior limit erosion/exhaustion Mathematical results that can Shared coverage be used to develop settlement Trigger of coverage theories (e.g., strategy and support Limits available under multi-year continuous, injury-in fact) settlement demands contacts and stub policies Number of occurrences at issue Analysis of cash flow requirements
- 2. Our allocation models can be efficiently custom built to meet our clients needs, whether they are facing only a handful of claims or many tens of thousands. With MRCs assistance, clients can determine the financial impact of pursuing a given allocation method or conceding a contested coverage issue. Often, the ideal strategy to pursue only comes to light after undertaking a modeling effort. GROUND UP ALLOCATION OF INDIVIDUAL CLAIMANT DATA For more information about the Complex Liability Consulting Policy Ending: 2/1/1993 2/1/1994 2/1/1995 Policy Beginning: 2/1/1992 2/1/1993 2/1/1994 Practice and other solutions Claimant First Exposure Exposure Settlement INSURER 1 INSURER 2 INSURER 3 from Marsh, visit www.marsh. EndDate Amount John Doe 1 6-Apr-85 1-Jan-99 $100,000 $12,269.53 $12,236.00 $12,236.00 com, or contact your local John Doe 2 1-Jan-82 1-Jan-98 $750,000 $104,851.03 $104,564.55 $104,564.55 Marsh representative. John Doe 3 1-Feb-93 1-Jan-99 $2,000,000 $0.00 $337,962.96 $337,962.96 John Doe 4 7-Jun-94 1-Jan-98 $200,000 $0.00 $0.00 $36,656.44 JIM DORION Practice LeaderChicago (312) 627-6186 james.f.dorion@marsh.com GRAPHICAL REPRESENTATION OF ALLOCATION RESULTS MICHELLE PINGOR Cleveland (216) 937-1375 michelle.m.pingor@marsh.com CHARLES MORAN Hartford (860) 723-5662 charles.m.moran@marsh.com Additional information about these servicescan be found on www.marshriskconsulting.com. Marsh is one of the Marsh & McLennan Companies, together with Guy Carpenter, Mercer, and Oliver Wyman. This document is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modeling, analytics, or projections are subject to inherent uncertainty, and the Marsh Analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. Copyright 息 2011 Marsh Inc. All rights reserved. Compliance MA10-10074 2696