New Guy Carpenter Report Sees Toxic Mold and Mildew as Growing Concern for Insurance Industry

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New Guy Carpenter Report Sees Toxic Mold and Mildew as Growing Concern for

Insurance Industry

Business Editors

NEW YORK--(BUSINESS WIRE)--Jan. 7, 2002--

New Study Analyzes Potential Impact of Toxic Mold and Mildew in the

Wake of $32 Million Mold-Related Verdict in Texas

As insurance companies encounter a growing number of toxic mold and

mildew-related claims, the industry needs to be acutely aware of health

risks associated with the problem, as well as coverage considerations,

public education efforts and cost containment issues, according to a new

study released by Guy Carpenter & . Co., Inc., the leading global reinsurance

intermediary.

The report, Toxic Mold: A Growing Risk?, is based on a recent seminar

sponsored by Guy Carpenter to provide insurance company executives with a

better understanding of the potential impact of toxic mold and mildew on the

insurance and reinsurance industries.

According to presenters at the seminar, there have been approximately

9000 toxic mold and mildew-related claims filed in the U.S. and Canada in

the past ten years. The claims are growing in size, are geographically

widespread and impact both the home and office, including a $32 million

award in Texas, an $18.5 million settlement to a California homeowner and an

action initiated by a New York employee seeking $65 million for workplace

mold exposure.

" While very few of the 1000 species of mold that are commonly found in

the U.S. pose a serious health hazard to humans, those that do can have a

significant impact on the insurance and reinsurance industries, " said Brad

, head of Guy Carpenter's Dallas office and the organizer of the

seminar, " Heightened awareness of mold and mildew as both a public health

and industry issue will help to minimize exposure and keep this problem from

becoming our next asbestos or radon crisis. "

The Guy Carpenter seminar brought together the insights and analysis of

several experts in the area of toxic mold and mildew, including:

J. Tuttle, co-owner, Steamatic of East Texas, Inc., who discusses

the science behind mold and the challenges it presents to insurers,

including prevention and removal.

S. , Partner, & Wilkerson, P.C., who provides

insight into the legal issues facing the insurance industry in the areas of

coverage, loss mitigation and claims handling.

Jerry F. s, president, Southwestern Insurance Information Service,

who discusses the media's role in informing the public about exposure to

mold and mildew and the insurance industry's response.

is Dick, deputy commissioner, Inspections Division, Texas Department

of Insurance, who examines the role of building codes as a means of reducing

overall exposure.

Harry C. Zimmer III, senior vice president and senior property officer,

Gerling Global Reinsurance Corporation of America, who addresses toxic mold

and mildew exposure from a reinsurance industry perspective, reviewing

underwriting, claims and coverage issues as well as its implications for

reinsurers.

Guy Carpenter & Company, Inc. is the world's leading global reinsurance

intermediary and a part of the Marsh & McLennan Companies (symbol:MMC), a

global professional services firm. Guy Carpenter creates and implements

reinsurance and risk management solutions to clients worldwide through more

than 2,000 professionals across the globe. The firm's full breadth of

services include Specialty Practices in Special Property, Professional

Liability, Life & Annuity, Accident & Health, Environmental Impairment

Liability, Finite Reinsurance, Worker's Compensation, Surety & Fidelity,

Agriculture and Managing General Agents. In addition, Guy Carpenter's

Instrat unit utilizes industry-leading quantitative skills and modeling

tools that optimize the reinsurance decision-making process for the firm's

clients. Guy Carpenter's website address is www.guycarp.com.

Toxic Mold: A Growing Risk? is available by e-mailing a request to

marketing@....

The report can also be downloaded from the Guy Carpenter website at

www.guycarp.com.

--30--bp/ny*

CONTACT: Dee Group

Betty Schwartz, 201/567-7783

bschwartz@...