Business practices’ revamp at Marsh as chief executive quits

US INSURANCE giant Marsh and McLellan announced a revamp of its business practices yesterday, as its chief executive resigned in the wake of a fee manipulation controversy that caused a 50% fall in its share price.

The company, whose Irish subsidiary said last week that it had overstated its accounts by €6.7m, said its businesses around the world would bring in a range of reforms before the end of the year to better look after its clients’ interests and ensure it stuck to the highest standards.

The announcement came after chief executive Jeffrey Greenberg stepped down to make way for Michael Cherkasky, the head of the company’s insurance brokerage unit. Mr Greenberg came under fire from shareholders last week after news emerged that the company was being sued in America by the Attorney General of the state of New York, whose investigation centred on the use of incentive fees to manipulate the sale of policies. The restatement of the Irish operation’s accounts was unrelated to the investigation.