Re Hurricane Season

Marsh & McLennan Co Inc 01 June 2007 News Release Media Contact: Christine Walton Gabriela Juncadella MMC Edelman for MMC 212 345 0675 212 704 4448 christine.walton@mmc.com gabriela.juncadella@edelman.com MMC ADVISES COMPANIES ON HOW TO MANAGE RISK FOR 2007 HURRICANE SEASON NEW YORK, June 1, 2007 - With the 2007 hurricane season now officially underway, Marsh & McLennan Companies, Inc. (MMC) today convened a panel of experts from across the firm to discuss ways companies can more effectively prepare and manage for the potentially catastrophic effects of this season's storms. An audio webcast of the event will be available at approximately 10 a.m. EDT at www.mmc.com. This year's hurricane season, which runs from June 1 to November 30, is forecast to be above-average with as many as 17 named storms compared with a more typical number of about 11 per season, according to the National Oceanic and Atmospheric Administration (NOAA). 'Hurricane Katrina showed in devastating detail how a powerful storm can wreak havoc far beyond where it makes landfall,' said Michael G. Cherkasky, president and chief executive officer of MMC. 'Organizations that were hundreds and even thousands of miles from the Gulf Coast suffered financial and other losses as the storm disrupted supply chains across industries and regions, illustrating why companies must consider the full spectrum of risks they face when confronted with a catastrophic event.' Among the critical business issues discussed by the MMC panel were business continuity planning, compensation challenges posed by displaced or reassigned workers, protecting and recovering digital data, managing the insurance claims process, understanding the impact of new Florida legislation, and forms of capital for property reinsurance such as catastrophe bonds. A major reason hurricanes continue to be so devastating is because of the population growth in and near U.S. coastal areas over the past decade, noted Robert W. O'Brien, managing director of Marsh's National Property Claims practice and leader of Marsh's Catastrophe Response team for North America. Marsh, Inc. is MMC's risk and insurance services firm. 'More people mean more business, and that translates into more exposure when disaster strikes,' Mr. O'Brien said. 'Companies should seek to fully understand all the issues that can prevent them from restoring normal operations - everything from knowing what an insurance policy does and doesn't cover to what documentation they need to ensure interim insurance payments after a storm has hit.' The MMC panel strongly advised companies to take pre-emptive action to ensure their ability to work through storm-related incidents and preserve operations to the greatest extent possible, including: • Developing business continuity and crisis management plans; testing emergency response plans • Assessing the resilience of the supply chain • Establishing internal and external communications procedures • Instituting data back-up and recovery protocols • Assessing and understanding levels of insurance coverage • Creating claims accounting and filing systems for use in post-loss scenarios • Becoming familiar with local government emergency response plans In addition to Mr. O'Brien, the other panelists were: Ken Giambagno, global leader of Marsh Risk Consulting's Forensic Accounting and Claims Services Practice, a specialist in forensic accounting; Howard Levine, principal at Mercer Human Resource Consulting and an expert in employee compensation programs; Mike Burmeister, director of engineering for Kroll Ontrack's data recovery operations; and David Priebe, global head of Guy Carpenter's Specialty Groups, which includes the firm's 16 Specialty Practices and the Instrat(R) modeling and actuarial unit. MMC is uniquely positioned to provide a range of management, operational and financial advice on natural disaster risks through its various operating companies, which are active in providing risk solutions across a range of professional disciplines. Marsh & McLennan Companies, Inc. (MMC) is the world's premier provider of advice and solutions in risk, strategy and human capital. It is the parent company of Marsh, the world's leading risk and insurance services firm; Guy Carpenter, the world's leading risk and reinsurance specialist; Kroll, the world's leading risk consulting company; Mercer Human Resource Consulting, the world's leading consultancy in its field; Oliver Wyman, a leading global management consultancy; and Putnam Investments, one of the largest investment management companies in the United States. More than 55,000 employees provide analysis, advice, and transactional capabilities to clients in over 100 countries. Its stock (ticker symbol: MMC) is listed on the New York, Chicago, and London stock exchanges. MMC's website address is www.mmc.com. This information is provided by RNS The company news service from the London Stock Exchange
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