Jeffrey W. Greenberg has resigned as chief executive and chairman of embattled Marsh & McLennan Company. The resignation comes in the wake of the lawsuit filed by New York Attorney General Eliot Spitzer alleging that Marsh steered clients to insurers with whom it had lucrative contingency agreements, and solicited rigged bids from major insurers for insurance contracts. Greenberg’s replacement is Michael Cherkasky, newly named head of Marsh's insurance-brokerage unit.

At the same time, New York Insurance Superintendent Gregory V. Serio said he has sent citations to Marsh, its brokerage subsidiary and eleven other corporate entities to appear at a hearing on November 23 to respond to charges that they “used fraudulent, coercive and/or dishonest practices and have demonstrated untrustworthiness.” A spokesman for Serio told the National Underwriter that at the hearing, Marsh will be asked to give their defense to the accusations made by Spitzer in his lawsuit. In announcing the hearing, Serio noted that he has the authority to “suspend or revoke licenses, seek restitution on behalf of aggrieved parties, and levy monetary penalties against its license.”

“Our joint investigation with the Attorney General’s office has raised serious questions about the way they have conducted business in New York State. This action today is part of the regulatory response to these concerns,” Superintendent Serio stated.

New York State Insurance Department Issues Citations to Marsh (NY DOI press release 10/22/04)

PIA Comments on Actions by New York AG Spitzer (10/18/04)

October 26, 2004