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Managing Director, Aon National Property Brokerage
Aon, New York
Aaron_Davis@aon.com

The Talent Template

Aaron Davis broke ground in 2008, helping a leading investment bank to obtain one of the first Basel II-compliant global property programs. As a result, the client was able to secure regulatory capital relief equivalent to their risk transfer costs.

The insurance program involves an initial two-year term and "evergreen" extension capabilities, which has formed the basis for subsequent global financial institution renewals involving Basel II operational risk capital relief programs.

"That template did not exist before," said the risk executive about the contract wording and insurance structure. "Now others can follow."

"Aaron deserves the credit," he said. "He's extremely talented."

In addition to his work on the Basel II compliant property program, Davis also was responsible for placing property and terrorism insurance programs for a number of real estate and financial institution portfolios that include some of the world's top terrorism "target" risks.

"It's not all D&O," one financial institutions client noted. The biggest financial institutions often own landmark properties in major cities where there can be serious terrorism risks.

In the last year, Davis, 39, also designed and implemented captive-based property and terrorism insurance programs for several global and U.S. real estate and financial institution clients.

He was responsible for developing the TRIA captive concept and implementing it for more than 20 of Aon's largest corporate clients.

Managing Director
Aon, New York
Vincent_flood@ars.aon.com

High Water Marks

Vincent Flood is known as one of the top property insurance brokers working for the financial institutions sector, getting the job done for his clients while maintaining the respect of the underwriting community as well.

"He will go through a brick wall for his client," one such client, a risk manager at a large financial institution, said. But he also "has the ability to finesse situations where he could achieve something really big for a client and yet not alienate the market in doing so," the client said.

This client's property program was up for renewal in May. "We achieved last year the steepest reductions I have ever achieved on a property program and tremendous enhancements along with it," he said. "The policies that I've got with him are just so much better than what I was able to achieve with the former broker," he said.

"I would tell you that I think Vinny is the foremost property insurance broker in the market today, and that's why I hired him," he said.

In addition to placing property insurance coverage, Flood also was involved in writing and negotiating with senior management of insurance companies and legal departments of all parties specific detailed contract language for U.S. financial institution clients, allowing them to apply for significant credits regarding their operational risk under Basel II.

In response to market changes and economic turmoil, he also developed alternative risk transfer structures including the creation and negotiation of credit wrap products.

Managing Director
Marsh, New York
Patricia.A.Logan@marsh.com

Special Privilege Character

Patricia Logan is a specialist in financial institutions bonds and was able to negotiate expanded coverage for a key client in the past year.

She successfully negotiated the wording on the excess layers of a large financial institution's FI bond program that allows the client to access the excess limits even though the primary underlying limit is not completely exhausted by payment of claims.

Historically, the excess limits of a financial institution bond could only be accessed if the underlying layer was completely exhausted as the result of a claim payment by the underlying carrier.

But because this client's FI bond program was structured with multiple carriers on each layer, the possibility for dispute by one or more participants certainly exists.

After agreeing to this wording, several carriers subsequently refused to grant it on other risks, thereby elevating the accomplishment.

"Pat has tremendous understanding of the nuances of these different policies and helped us in coordinating them," the client said. She was able to reorganize the programs and get expanded coverage, something that "I could not have done without her."

In addition to her work on this program, Logan also provided fidelity training to members of the risk management staff at large corporations. Because fidelity is a specialized product that differs greatly from liability policies, clients are not as familiar with the coverage and require experienced brokers to place appropriate coverage.

Senior Vice President
Marsh, New York
Siobhan.OBrien@marsh.com

Setting New Standards During an Implosion

The year 2008 was one that shook the financial institutions sector to its core. The major Wall Street investment banks no longer exist as independent entities. Many commercial banks failed and had to be rescued by the federal government.

In March, J.P. Morgan stepped in to rescue Bear Stearns. By September, a number of other big firms were also in crisis. The U.S. government seized control of mortgage lenders Fannie Mae and Freddie Mac. Lehman Brothers filed for bankruptcy. Merrill Lynch agreed to sell itself to Bank of America, and American International Group had to be bailed out by the federal government.

Insurance brokers faced unprecedented challenges in this environment.

Siobhan O'Brien rose to the challenge, helping her clients get the directors' and officers' and fidelity bond coverage they needed.

One client at a large financial institution gave O'Brien high marks for helping the firm negotiate its coverages in September on very short notice.

"Siobhan led the charge to negotiate with all the potential carriers," he said. It was an "enormous task" that went beyond the demands of a standard renewal.

Another client had a renewal in early October "that was in the midst of the financial crisis¿at the height of it."

"It was a pretty challenging time--to get the coverage we got in the time frame we did," he said. To put together the program that O'Brien's team did "was a big win."

Managing Director, Financial Institutions Practice Leader
Aon, New York
Michael_O¿Connelll@ars.aon.com

An Asset to Those in Distress

The turmoil in the financial institutions sector was far-reaching in 2008, presenting challenges for everyone connected with the industry.

During the past year, O'Connell was instrumental in Aon winning new clients or gaining expanded responsibilities for existing clients. These successes included many high-profile clients or clients in distressed situations.

Two of these clients awarded business to Aon within three weeks of renewal after the incumbent broker was unsuccessful in developing a program.

One of those clients commented that her company had a very hard time placing its financial institutions bond and errors-and-omissions coverage earlier in the year after the market for those specific programs had hardened substantially.

The company moved the business to Aon, which was able to secure terms and get coverage placed in two weeks.

"He and his team went above and beyond," this client said. She gave credit to O'Connell for pulling together an effective team that got the job done in very difficult circumstances.

"He personally made phone calls to insurers, he had relationships," she said.

"There are others that have the financial institutions expertise," she said. "What always impresses me with him is he tries to be creative. I don't see the creativity out there with others."

Senior Vice President¿FINPRO; National Practice Leader for Tech/Telecom E&O, Network Risk
Marsh, New York
robert.parisi@marsh.com

A Broker and Networked Expert

Robert A. Parisi Jr. has won a spot as a Power Broker^TM this year for his work as a cyberliability expert.

Companies are legally responsible for the security of confidential customer and employee information, and financial institutions have significant risk in this area.

One of Parisi's clients noted that, after years of declining to buy cybercoverage, he decided to buy the coverage this year after Parisi was able to address his concerns.

"He really has been a pioneer in that area," this client said. "He's absolutely world class. He can get things done that no one else can in cyber. He's definitely the top talent in the business," this client said.

Over the past year, Parisi has worked extensively with financial institutions and retail to identify, quantify and manage the risks associated with privacy and information security. He has been instrumental in working with the insurance markets to expand traditional property/casualty products and enhance specialty products to best address the needs of his clients.

This has included working with carriers to find ways to expand minimum sublimits into full policy limits for things like breach notification, crisis management and regulatory defense associated with information security and privacy breaches.

Immediately prior to joining Marsh, Parisi was chief underwriting officer of eBusiness Risk Solutions, a unit of AIG.

Willis
Executive Vice President and Financial Institutions Industry Leader
Basking Ridge, N.J.

Marsh
Managing Director
New York

Marsh
Managing Director
New York

Aon
Managing Director
London

Marsh
Managing Director
New York

Managing Director
Marsh
New York

Aon
Managing Director
New York