Situation: Large multi-specialty law firm was confronted by soaring premiums due to increased claim activity. Questionable as to whether the current insurer would consider renewing the policy.
MGW Response: Rather than merely immediately shopping the current policy to various underwriters, MGW examined the cause of the claims to evaluate root causes and identify opportunities to restore insurer confidence. This analytical approach yielded significant strategic learnings for the firm about a particular practice area, its management, risk profile, and ultimately its overall financial returns. With this comprehensive assessment of the effects of this division on the firm’s overall financial position, risk profile, and insurance portfolio, the firm agreed with MGW’s recommendation that they cease operating that portion of their practice. Additionally, MGW secured peer reviews by comparable, non-competing firms and engaged in numerous high-level meetings with the current underwriter.
With the firm’s new structure that eliminated the highest risk/lowest return practice area, thorough peer reviews, and multiple senior level discussions with the insurer, MGW restored the underwriter’s confidence in this client. MGW’s analysis and recommendations were followed-up with a series of risk mitigation seminars for each of the individual practice areas to learn how they could minimize exposure by proactively implementing key operating policies and procedures. As insurance brokers who are also attorneys, the MGW executives were uniquely poised to design and deliver the professional development workshops to the firm’s attorneys and management. The firm’s premiums have remained stable, coverage uninterrupted, claims activity diminished, and financial returns stronger.