Marsh and regulators expected to settle by February: bargaining points include bid-rigging, restitution and punitive damages

Risk & Insurance, Jan, 2005 by Steve Yahn

The New York Attorney General's office and the New York Insurance Department are expected to settle outstanding civil complaints against Marsh by late this month, says a well-placed source.

"The goal is to settle all civil complaints and citations in one, final agreement," the source said. "All sides are pushing for an announcement by sometime late this month, in February at the latest."

On the fast-track bargaining table to settle all civil charges and regulatory citations are:

* Marsh's definitive agreement to end steering and bid-rigging practices, and to take a hard look at any form of compensation, or "contingency" arrangements.

* Restitution of improper payments to those harmed by any of Marsh's illegal practices.

* The assessment of punitive damages.

* Resolution of citations issued in October by the New York State Insurance Department.

"The kind of settlement that is sought by all parties is intended to allow Marsh to put all but criminal charges against individuals behind it, so that it can move forward with a clean slate and clear guidelines of expected conduct," one insider put it.

Marsh avoided criminal prosecution last fall after it agreed in October, to implement reforms outlined by New York Attorney General Eliot Spitzer. The reform announcement came just 11 days after Spitzer filed civil charges against.