Midwest Region E & O Mitigation

1. Midwest Region E & O Mitigation Process Rollout C O N F I D E N T I A L

2. E & O Early Mitigation • Why are we here? • - Hard market = increase in E & O frequency not so easy to “fix” mistakes • - Raise awareness to the seriousness of this issue • - Change in our culture: reporting and resolving • Today’s agenda: • - Raise awareness about the magnitude of this opportunity - via videos • - Rollout new “E & O Mitigation Process” Proactive in reporting……proactive in resolving 1

3. E & O Early Mitigation • 1) New approach to prevention: Early reporting of potential situations • E & O defined: • “Anything we did or failed to do that could or has created negative financial impact to the client.” • What should I report? • When in doubt: report it. Our goals are to: • 1. change the culture in terms of what we report • 2. remove the stigma surrounding E & Os. • When should I report? • - “Knowledge of” starts the clock • - Anytime a colleague feels an E & O situation may exist, the incident should be verbally reported to their department manager immediately • - Formally report to department manager and E & O Mitigation coordinator, using the E & O form, within 3 business days. Any client inquiry that hints at the possibility of an E & O..…report IT 2

4. E & O Early Mitigation • 1) Early Reporting cont. • Changing the reporting culture: • Legal currently categorizes E & Os as: circumstances, claims and lawsuits. • Midwest is tracking a fourth category: No Fault Placement Failure: Placement is not bound or some aspect remains open: T & Cs, limits, coverage gaps, etc. • NFPFs: (two types: red and yellow) • - Red: Help is needed to mitigate, must formally report in 3 business days • - Yellow: Types: (No promises to client - client informed) trying to fill a layer, punitive wrap-arounds and delays in receiving binders; must be formally reported in 10 business days if not resolved • If we have informed the client in writing that all of their wishes could not be accomplished, and they agree and do not desire Marsh to continue to pursue the differences - this would NOT be a NFPF situation 3

5. E & O Early Mitigation • 2) Assigning Ownership via Ad Hoc E & O Committee • Ownership: 1. EOM coordinator is notified of potential E & O. (EOM - Sr office claims person) 2. Upon receipt of “Report to Counsel” form, EOM schedules Ad Hoc E & O Committee meeting as soon as possible. • - This committee should consist of Sr. office level management, taking into consideration all aspects of the E & O incident. Potential representation from: • appropriate departments • claims/legal • Ad Hoc Committee to: • assess situation – client relationship • fight fires as needed • assign owner, establish next steps and reporting rhythm • informally share E & O learnings with their area Early intervention and ownership will drive results 4

6. E & O Early Mitigation • 3) COMMUNICATION of process changes and raise AWARENESS: • MANDATORY Office-wide or department meetings • Reporting catch-up period: • Once the Mandatory Office-wide or department meetings have taken place, all colleagues will have a 30 day reporting catch-up period during which reporting will be encouraged to work towards three things: • 1. Initiate a cultural change around reporting E & Os 2. Determine areas in need of training • 3. Develop a baseline of activity • Regional quarterly email to EOMs and Office Heads: • - provide data on what has been reported • - educate or raise awareness on what is being reported • - to encourage reporting • This network will assist in implementing process changes and lessons learned 5