FINANCIAL ADVISORY SERVICES
Provides more precise measurement of your potential and actual financial damages and supportive expert testimony and analysis — whether to improve insurability, maximize claims recovery, settle outstanding litigation, or resolve construction project management or other disputes.
• Construction Project Management Benchmarking
• Construction Delay and Dispute Consulting
• Business Interruption Loss Estimation
• Forensic Accounting and Claims Preparation
Key Capabilities:
HIGHER RECOVERY
We measured and supported a petrochemical company’s business interruption losses and rebuilding expenditure claims after a fire closed a plant, helping it quickly settle with its insurer for 35% more than the initial offer.
35%
STRATEGIC RISK CONSULTING
Helps your business be prepared to quickly bounce back from an unexpected event through identification of your enterprise-wide risks and collaborative development and implementation of mitigation strategies, executive preparedness exercises, and recovery plans.
• Cybersecurity Vendor Risk Management
• Cybersecurity Operational Reviews
• Cybersecurity Risk Quantification and Strategy
• Business Continuity and Crisis Planning
• Enterprise Risk Management Planning
Key Capabilities:
MORE
PREPARED
We conducted a series of business continuity and crisis management executive preparedness exercises for a technology company, increasing surveyed participants’ comfort, confidence, and preparedness to implement response processes by more than 95%.
95%
CASUALTY CONSULTING
Helps you improve workplace health and safety practices, streamline claims and vendor management practices, and leverage sophisticated analytic tools to reduce workers’ compensation claims and liability costs.
• Complex Liability Consulting Services
• Medical and Disability Management Services
• Claims Inventory Workout
• Workers’ Compensation Loss Control
• Workplace Injury Prevention Strategies
and Safety Program Design
Key Capabilities:
FEWER
CLAIMS
We designed a comprehensive workplace safety and injury prevention program for a global aerospace company, resulting in a nearly 50% reduction in workers’ compensation claims and a 75% decline in incurred costs over the past six years.
50%
PROPERTY CONSULTING
Enables you to strategically manage the risks associated with your portfolio of physical assets – whether identifying your organization’s biggest vulnerabilities, implementing strategies that can save you money or more effectively protect your business, or supporting insurance decision-making.
• Natural Hazards Risks and Data Quality
• Value Stream Mapping and Supply
Chain Risk Management
• Asset Valuation Services
• Property Risk Engineering and Loss Control
Key Capabilities:
LOWER AVERAGE
ANNUAL LOSSES
We helped a large hospitality company with coastal exposures improve the quality of its windstorm risk modeling data, reducing average annual losses by 30% and resulting in significant insurance premium savings.
30%
EMAIL AN MRC EXPERT
VIEW THE COMPLETE CASE STUDY LIBRARY
Learn more about how MRC can support your strategic risk
management and total cost of risk reduction objectives.
Close working relationships with your team that enable us to develop customized solutions that can be integrated into your broader risk management strategy.
COLLABORATIVE APPROACH
Proprietary data and innovative tools to identify and quantify your risks.
ADVANCED ANALYTICS
Skilled professionals in almost every major sector who understand your risks and your business.
DEEP INDUSTRY EXPERTISE
Consultants in over 40 countries who work as one global team to meet your needs.
GLOBAL REACH
By engaging MRC’s FACS specialists, the client gained better resources to restore and rebuild the site, a stop-gap production solution during production downtime, and a significantly larger settlement than the insurers’ original offer. The client was thrilled with these outcomes, which enabled it to maintain operations, appropriately manage costs, and stay focused on its business.
Impact on Risk
• Ultraconservative Insurers: There were significant coverage disputes between the client and its insurers. Our FACS
team partnered with Marsh claim advocates, and the
client’s in-house engineers and accountants, to develop a
comprehensive analysis of the damages, business
interruption losses, and extra expenses. This enabled the
client to overcome the insurers’ ultraconservative initial
stance and increase the insurers’ initial settlement offer by
more than 50%.
• Sole Production Facility Shutdown: Our FACS team
assisted the client in documenting and quantifying the
extra cost to outsource a large portion of the damaged
plant’s production to a competitor.
• Physical Recovery of Site: The client had initially
enlisted a local restoration contractor, which was
overwhelmed by the scope of the project. We were
brought in as the project manager to assist the
client’s internal team with managing the restoration
and repair process.
Our FACS experts were onsite the same weekend as the fire to assist in organizing the client’s response. We worked with the client’s internal team to tackle three main issues:
Our Strategic Approach
A chemical manufacturing company experienced a crippling fire at a plant that was the sole production location of a primary group of products. The client executive enlisted our Forensic Accounting and Claims Services (FACS) Practice to assist the client with quantifying its losses, preparing its claim, and recovering business operations.
The Client’s Issue
FINANCIAL
ADVISORY SERVICES
STRATEGIC RISK
CONSULTING
CASUALTY
CONSULTING
PROPERTY
CONSULTING
By engaging MRC’s cybersecurity specialists, the client gained a more accurate representation of the value of its cyber exposures. This informed the client’s risk transfer decisions, including helping to determine what coverage and limits to buy. Additionally, we identified an unknown gap and developed concrete recommendations to improve the client’s cyber posture through risk mitigation actions.
Impact on Risk
• Corruption of a database, which would require
replacement of shipped product.
• Production shutdown triggered by a ransomware attack.
These scenarios were representative of low-likelihood/ high-impact cyber events that could serve as reference points for risk management planning. During our analysis, we also identified a previously unknown gap around which a third scenario would later be developed.
We worked with the client’s management to develop and analyze two realistic and tailored cyber event scenarios to demonstrate the potential recovery costs:
To help this client meet its objectives, our Cybersecurity Consulting and Advisory Practice experts applied our CBIQ analysis method. Through this analysis, we were able to stress test the client’s risk appetite to help it determine what level of risk reduction measures, such as additional organizational preparedness or risk transfer, would be needed.
Our Strategic Approach
A physical security and services company released an RFP seeking to establish a first-party cyber insurance program as part of its best practice efforts. However, it was struggling to identify how big its cyber risk was or how much insurance to buy. To assist this client, the client executive integrated our Cyber Business Interruption Quantification (CBIQ) offering into our RFP response as a potential solution and differentiating factor, which ultimately aided in Marsh’s selection.
The Client’s Issue
FINANCIAL
ADVISORY SERVICES
STRATEGIC RISK
CONSULTING
CASUALTY
CONSULTING
PROPERTY
CONSULTING
By engaging MRC’s casualty consulting experts, the client gained a more accurate understanding of its risks and a strategic plan for improving performance. The strategic plan covered issues such as staffing levels and roles, automation, managed care program and process improvements, revised roles and workflows for return-to-work, safety regulatory and compliance programs, and data system issues, among other matters. The report and roadmap provided by our team identified cost savings of approximately 18% for the client.
Impact on Risk
• Reviews of data validity and integrity, data sources,
metrics, KPIs, and reports.
• Audits of TPA claims handling to assess and
quantify performance.
• Visits to locations to understand their roles in the
process, losses, corporate messaging, and safety
and ergonomic issues.
• Assessments of benchmarking and safety program
outcome measurement.
• Interviews of key stakeholders.
• Reviews of extensive documentation related to
workers’ compensation program management,
including policies, procedures, staff job descriptions,
workflows, reports, and metrics.
To help this client meet its goal, MRC’s Casualty Consulting Practice undertook a multi-disciplinary approach to evaluating all facets of the client’s workers’ compensation program. Our team included claim professionals, managed care experts, safety and ergonomic professionals, and risk analytic and information management experts. Our evaluation consisted of:
Our Strategic Approach
A national retailer needed an objective evaluation of its workers’ compensation program management that covered pre-loss, post-loss, and information management. It was seeking to identify program enhancements with measureable cost savings and claim outcomes. Given its growth plan, strong workers’ compensation program performance would help transition any newly acquired companies into a best-in-class program.
The Client’s Issue
FINANCIAL
ADVISORY SERVICES
STRATEGIC RISK
CONSULTING
CASUALTY
CONSULTING
PROPERTY
CONSULTING
By engaging MRC’s valuations specialists, the client gained a more accurate representation of the value of its assets location by location, along with a streamlined process to update, add, or delete locations on a yearly basis. As a result, the SoV value decreased by $500 million, generating more than $500,000 in premium savings.
Impact on Risk
• We performed an asset valuation — covering
buildings, contents, and insurable land
improvements — for all locations on a portfolio
basis. We then performed a detailed analysis of a
set of 12 prototype locations and 13 newly-
constructed locations to segregate insurable
construction costs from total construction costs.
The resulting data allowed us to add all 2016
locations’ values appropriately and correct the
values in the portfolio.
• We reviewed the client’s current valuation processes
against best practices, identified a range of issues to
be addressed, created an appropriate procedure for
values, and developed best practices for updating
the SoV going forward.
To help this client meet its yearly valuations objectives, our Valuations Services Practice experts took a two-phase approach.
Our Strategic Approach
A leading national restaurant chain client with over 1,700 retail locations was unsure about its property values calculations. It had in place a process that had never been vetted by a valuations specialist and often included non-insurable assets in its valuations. This led to the overvaluing or undervaluing of individual locations and inaccurate values by geography on its statement of values (SoV).
The Client’s Issue
FINANCIAL
ADVISORY SERVICES
STRATEGIC RISK
CONSULTING
CASUALTY
CONSULTING
PROPERTY
CONSULTING
How We Did It
COLLABORATIVE
APPROACH
ADVANCED
ANALYTICS
DEEP INDUSTRY
EXPERTISE
GLOBAL REACH
Across Industries And Geographies,
MRC Helps You Manage Risk More Intelligently
Can reduce settlement time by more than 35% and reduce disputed claim amounts by more than 90%.
Can mitigate potential losses tied to business interruption, data breach, and malware exposures.
Can optimize capital efficiency by lowering reserves 15% to 35%.
Can validate mitigation efforts, lead to enhanced coverage terms, and improve return on investment payback.
Can result in claims being paid up to 50% faster.
Can help decrease insurance costs by as much as 10% due to underwriters’ comfort in resiliency plans.
Can reduce injury rates 5% to 30% upon adoption.
Can help lower insurance premiums 15% to 25%.
Lowering Your Total Cost Of Risk
Sophisticated Loss Estimates
Cybersecurity Third Party and Vendor Management Programs
Workers’ Compensation Claims Inventory Workout
Value Stream Mapping Analysis
Construction Claims Recommendations
Business Continuity Programs
Workplace Health and Safety Assessments and Strategies
Advanced Natural Disaster Modeling Techniques
FINANCIAL
ADVISORY SERVICES
STRATEGIC RISK
CONSULTING
CASUALTY
CONSULTING
PROPERTY
CONSULTING
MRC’s Four Consulting Practices
We work with you to identify the most significant property, casualty, cyber, and strategic risks to your business. We then quantify your potential losses and help you determine your explicit risk appetite.
DETERMINE RISK EXPOSURES AND APPETITE
We can help you save money on insurance premiums and claims costs, improve health and safety practices to prevent losses, accelerate and optimize insurance claims payouts, develop business recovery plans, and reduce balance sheet reserves. These measurable outcomes can help you demonstrate a real return on your risk management investment.
DELIVER PROVEN RESULTS
We assist you with developing appropriate strategies for your business and help you make continuous improvements. This may include implementing risk mitigation programs designed to minimize exposures and losses, enhance your resiliency, and maximize recovery after an event. We also work together with the broader Marsh organization to transfer unacceptable risks.
DEVELOP RISK MANAGEMENT STRATEGIES
Risk
MRC’s Integrated Approach To Managing Your Risk
Lower your total cost of risk.
Develop customized strategies to address them.
Assess the full spectrum of your risks.
Marsh Risk Consulting (MRC) has the breadth and depth of expertise to help you:
An Uncertain And Complex World Demands That Business Leaders Manage Risk Holistically And Deliver Measurable Results
Helping You Navigate Risk In A Complex World
Marsh Risk Consulting
