Marsh USA has taken legal action against Aon Risk Services Companies in a federal court in New York. The lawsuit alleges that Aon orchestrated a mass exodus of key employees from Marsh’s construction surety practice, including senior leaders. This incident has raised eyebrows in the industry, highlighting the ongoing tensions between major players in the insurance sector.
The complaint reveals that Aon targeted Robert McDonough, who was leading Marsh’s construction practice at the time. Using his insider knowledge, Aon allegedly recruited him and other team members by accessing confidential information, including compensation data. Marsh claims that this recruitment effort culminated in the resignation of 20 employees in just 38 minutes on March 10.
According to Marsh, Aon’s actions were a quick fix to its own staffing issues after losing its surety team to another firm. Instead of rebuilding its team internally, Marsh argues that Aon unlawfully poached a significant portion of its workforce, violating Marsh’s legal rights in the process.
The lawsuit also points to a specific incident where one departing employee confirmed McDonough’s role in coordinating the departures. This employee mentioned that McDonough had selected the top 20 team members to leave and offered them “life-changing money” to make the switch.
In addition to poaching employees, Marsh accuses Aon and McDonough of using confidential information to lure clients away. The day after the mass resignations, a long-time Marsh client informed the company that it would be moving its business to Aon, with McDonough as the main contact. Reports indicate that more clients may follow suit.
Furthermore, McDonough is alleged to have breached several agreements with Marsh, including confidentiality and non-solicitation clauses. The lawsuit claims he used proprietary information to undermine Marsh’s recruitment efforts. Notably, he left the company just days before a scheduled meeting to recruit an Aon candidate, allegedly sharing those plans with Aon.
This legal battle comes on the heels of Aon’s own issues last year when it faced accusations of poaching from other firms, including a case involving Howden. The ongoing disputes underscore the competitive nature of the insurance industry and the lengths to which companies may go to secure talent.
As this case unfolds, it will be interesting to see how the courts respond to the allegations and what implications it might have for industry practices regarding recruitment and employee movement.