june 10, 2015 abfc – 2015 supply chain insurance
TRANSCRIPT
June 10, 2015
ABFC – 2015 Supply Chain Insurance
Marsh Leader in Client Value Delivery, Supported by Scale and Scope
Marsh Operations
Correspondent / Regional Office
Revenue: $5.7B
MMA 11%
International52%
US and Canada
37%
27,000 colleagues 500 offices in more than 130 countries
Approx. $55B in global premium
2
33
12th largest US agency, driving significant growth through 40+ agency partnerships, 3,060 colleagues across 75 locations
Employee Benefits, 39%
Commercial P&C, 40%
2011 2012 2013
302
358
470
163
2010
2009
4
Revenue ($M)
Marsh & McLennan Agency
Current Run-Rate
590
680
2014
Marsh & McLennan Agency - Today
Houston
Overland Park
Minneapolis
Richmond
New York City
Boston
Conshohocken
Mobile
Atlanta
Jacksonville
West Palm Beach
Charlotte
Greensboro
RoanokePetersburg
Alexandria
King of Prussia
Baltimore
White Plains
Paramus
HaywardSpoonerEau Claire
Fort LauderdaleMiami
MilfordTroy
Orlando
Worcester
Dayton
Sioux Falls
Greenville
Dallas
Milwaukee
Duluth
ColumbusCincinnati
Springfield
Spring
Livonia
San Diego
Oakland
San Francisco
Aliso ViejoWilmington
High Point
Raleigh
San Antonio
4
Anchorage
Marsh & McLennan Agency Energy Vertical – Profile
• Formed in 2009/2010
• Studied & invested in the industry
• Focused on Biofuels/Biomass
• Fragmented supplier network
• Manuscripted coverage form
• Located Zurich Supply Program– Teaching Zurich the unique Biomass/Biofuels industry– Coverage is in place and available in the market
Supply Chain Insurance – Who it’s for
• Any organization that
– Significant dependence on their supply chain
– Wants to protect their revenue stream “output”
– Wants to improve their ability to gain favorable financing terms
Supply Chain Insurance – What it is
• “All Risk” Business Interruption– Loss of profit– Increased cost of working
• Transfer risks associated with named suppliers
• Insurance is based upon pre-agreed limits per supply and supplier
“Reduction in Supply which leads to a reduction in Output…”
Supply Chain Insurance – What it isn’t
• Quality of Supply
• Deliberate Acts of the Insured– Non acceptance of the supply
• Deliberate Acts of the Supplier– Withholding due to non-payment
…Very Few Exclusions…
Supply Chain Insurance – What’s needed
• Detailed overview of operations / project– Financials / pro-forma’s– Off-take agreements– Etc…
• Current supply agreements in place
• Detailed analysis of supply chain
…The better the information the better the outcome…
