With so much at stake, automotive companies need a trusted advisor with the experience and resources to help them successfully manage risk.

Marsh's Automotive Industry Practice
Marsh's Automotive Practice works with a diverse group of automotive original-equipment manufacturers (OEMs), suppliers, dealers, and related industry clients. The practice comprises a global network of more than 375 experienced automotive risk specialists, who provide insights on key risk issues. Marsh also maintains an Automotive Center of Excellence made up of automotive experts who serve clients with similar risk issues, risk profiles, and servicing requirements.

Our Automotive Industry Practice's client base includes:

• More than 40% of the top 150 North American parts suppliers;
• Nearly 50% of the top 100 global parts suppliers;
• 425 U.S.-based clients;
• More than 70% of the top 25 global OEMs (based on global vehicle production); and
• 30% of the top 10 dealership groups.

Our professionals work with organizations to analyze hazard, financial, operational, and strategic risks and to develop the innovative solutions that help clients avoid, mitigate, and/or transfer their risk exposures.

For more than 70 years, Marsh has helped automotive-related organizations to implement successful risk management programs. Our practice's dedicated and talented professionals combine in-depth industry knowledge with thoughtful leadership, sound counsel, and results-driven solutions that serve automotive clients' day-to-day needs and keep them far ahead of the risk curve.

Hazard Risk Services

• Plant Closure Services
  Marsh Risk Consulting's, Claims, Property, and Human Capital Practices can help clients manage the many risks that come with closing a plant. Our solutions focus on employee communications, containment of claims costs, and preservation of physical plant assets.
• Business Continuity Services
  Business continuity planning (BCP) activities include prioritizing business operations, identifying tolerable downtimes, assessing financial effects, and outlining recovery strategies to eliminate or minimize impact on business operations. Our automotive experts can make site visits to supplier locations and assess existing BCP preparations, identify gaps in planning, and determine if overall plant conditions pose a threat to ongoing supplies.
• Supplier Resiliency
  Although supplier resiliency is subject to greater scrutiny today, most companies rely primarily on their first-tier suppliers to monitor the health of their own suppliers — an often insufficient approach. Marsh's supply chain experts use risk modeling techniques and other quantitative indicators to assess the overall viability of specific suppliers and determine which may be vulnerable to various risks.
• National Dealer Solutions
  Using our automobile dealer expertise, we have developed a group captive to provide competitive property and casualty insurance for larger dealer operations.

Financial Risk Services

• Environmental Solutions
  Marsh provides independent valuations that can help companies meet the challenges from stringent environmental liability reporting requirements of financial reporting authorities in the United States and internationally.
• Trade Credit Insurance (TCI) Solutions
  Credit insurers are reviewing exposures and avoiding difficult industry sectors and countries. Marsh's Trade Credit Practice can assess and manage global clients' receivable risks and advise on working capital optimization steps, receivable risk management and trade credit insurance options.
• Product Recall for Automotive Suppliers
  Marsh Automotive Recall Concept (MARC) provides a product recall risk transfer solution for U.S. companies with operations in Germany. Coverage includes first and third-party property for recall actions and expenses for dismantling and reassembly.
• Premium Finance
  Marsh AFCO provides a separate credit line for premium financing for all premiums at competitive rates.

Operational Risk Services

• Supply Chain Management
  Risk-adjusted supply chain management can help organizations identify, quantify, and prioritize complex supply chain risks.
• Human Capital
  Marsh's Human Capital Practice specializes in identifying and assessing employment-related risk and corresponding costs, evaluating potential solutions, implementing optimal solution(s), and measuring success.
• Severance Cost Reduction
  Through Transition Services Inc. (TSI), a fully outsourced severance administration solution, Marsh provides an alternative to traditional lump-sum severance arrangements that can reduce costs by as much as 30% to 40%.
• Product Recall
  Marsh Risk Consulting's Product Recall Practice can help evaluate recall protocols, gauge their effectiveness, and outline recovery strategies in the event of a recall. In addition, the Marsh Automotive Recall Concept can help protect the assets of tier one automotive suppliers against warranty and recall-expense claims of OEM customers.
• Equipment Maintenance Expense Consolidation
  This insurance can yield cost savings of 15% to 30% by aggregating maintenance contracts across a broad spectrum of equipment and providing an insurance benefit for repair and replacement of key components. By consolidating the contracts and providing a direct cost/benefit analysis of equipment maintenance spend, an equipment maintenance program provides a clear understanding of maintenance expenditures and its elimination of unnecessary costs. Either original service providers or approved vendors can be used under the program.
  

Strategic Risk Services

• Trade Disruption
  Companies that use third-party contract manufacturers overseas expose their businesses to a number of risks with the potential to severely disrupt operations. Our political risk experts in Marsh's Alternative Risk Solutions Practice work with organizations to assess which events have the potential to affect operations negatively and help tailor programs that specifically address the potential causes of loss.
• Private Equity and Merger and Acquisition (PEMA) Services
  As many automotive companies shed assets, Marsh's PEMA Practice's asset sale risk due diligence services can help them to manage a wide range of risks associated with divestiture. PEMA works closely with the client's team to identify and address deal-related issues, consults on the insurance and risk management implications of the proposed divestiture, evaluates historical liabilities, and advises on whether new or additional coverages or alternative retentions should be considered.
• Crisis Management
  Marsh's risk professionals help senior leadership to prepare for, prevent, manage and recover from issues and adverse events that threaten their people, valuation, brands, finances, operations — and reputation. A comprehensive crisis management program provides a roadmap to manage any crisis and aligns all related incident response plans, including business continuity planning, security, emergency management, product recall, supply chain, human impact, etc.

Additional Information
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