Insurers Must Defend Themselves!
They say the first step in solving a problem is admitting you have one. If that’s true, then insurers took a giant leap by confronting their reputational troubles during a recent conference.
The Property Casualty Insurers Association of America held their annual Executive Roundtable in San Antonio in late January, and yours truly was on hand to join a panel discussion on “Reputation Management.”
I give PCI a lot of credit not only for having the guts to address the industry’s lousy image, but for allowing me to participate. PCI has never invited press to this event, where CEOs gather to share information and swap war stories about the economy and insurance market.
(Before Bob Hunter of the Consumer Federation of America complains about the propriety of insurance executives conspiring under one roof, PCI was scrupulous in reminding attendees about their legal responsibility to keep discussions general, and be cognizant of antitrust restrictions at all times.)
I was invited because I’ve been giving speeches and writing columns for anyone who’ll listen about how the industry should stop playing rope-a-dope with critics and start fighting back to reclaim its identity.
Some at the meeting still had their heads in the sand, insisting the negative perception of this business will never change–or worse, questioning whether the industry’s reputation is really all that bad. However, most were eager to launch a counterattack.
On my panel, Steve George, executive vice president of AAA of Northern California, Nevada and Utah, urged carriers to “launch a campaign on how insurance makes your lives better.” He said the public, press and elected officials need to be educated about how the industry helps promote a more secure workplace, as well as safer cars, homes and commercial buildings.
Another panelist–Kelly Kenneally, a communications consultant–said insurers should form speaker bureaus and get their people into the field to address business and community groups, touting the contributions insurers make to the economy and society.
I was heartened by the response to my pitch that carriers enlist the help of all their employees as goodwill ambassadors by training them, keeping them in the loop and providing talking points to help them defend their business among friends and neighbors.
When I’ve suggested this before, most people balked, insisting their corporate counsel would never allow such a thing. Some told me their firms go so far as to prohibit anyone but authorized personnel (usually PR and legal) to say anything about the company to anyone. But at PCI, many attendees liked my idea.
One noted that “formal opportunities to respond to attacks on the industry are limited, but informal opportunities are unlimited.” Another said “it is naïve to think people are not talking about the company outside of work,” adding that “it makes more sense to provide them with the ammunition they need to properly defend themselves and their profession.”
A third said “you can’t give in to the tyranny of the attorneys,” adding that “if we craft our message only in the way the lawyers say is acceptable, we’re all going to be in a lot of trouble.”
Insurers shouldn’t behave like turtles—retreating into their shells until their attackers go away. Defend yourselves! Better yet, go on the offensive!
Consider the wise words of one PCI attendee, who said: “There is no place to run and no place to hide. We have to address our reputational challenges head on if we have any hope of getting our message out.”
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I couldn’t agree more with the comment that “carriers [should] enlist the help of all their employees as goodwill ambassadors….” It’s happening anyways so why not give them the tools and soundbites that will position the company in the best light. At the same time, the social media (i.e., Twitter and Facebook) environment is a fertile ground for people, both employees and customers, to grouse about perceived or real trouble caused by a particular carrier. So, get on top of issues now rather than later.
Your “head in the sand” analogy should be more than just a call for action to actively respond to harsh criticism. It also should be a cry for this industry to leverage these new tools to engage in an ongoing dialogue with those very same critics that most companies don’t even know carry on in virtual world. There is nothing more powerful than a negative comment Tweeted around the world. Viral marketing and viral criticism are two sides of the same coin.
One word of caution, though. Don’t let the potential anonymity of the Internet intoxicate you into believing you can control public opinion or lead you into trying to “stack the deck” in your favor. It will inevitably come back to bite you in the”you know where.”
Sam, I completely agree. The insurance industry does not do enough to let the world know about the good it does.
One long-term effect that this will have is the ability of the insurance industry to attract up-and-coming talent. With the Baby Boomers retiring over the next 15 years, there are fewer young workers who will replace those retiring workers.
If we don’t start “talking up” the insurance industry, the negative public perception will do more than just make the insurance industry look like a bunch of bad guys.
The true value of the insurance policy comes to the forefront when a claim is filed. Insuring that the policyholder recieves a fair, prompt and equitable settlement by trained professionals will deliver more positive response than all the publicity campaigns combined.
The perception of the public that getting a fair shake is problematic. It evolves from the chatter around unfair claims service delivery.
Focus on delivering the goods, not the message.
Sam if it is a fight you want bring it on. Disconnect remains on display at the National Underwriter….
Of all the other blogs that we’ve linked, National Underwriter Editor in Chief Sam Friedman’s blog certainly resides in our top 5 for mentions gere at Slabbed. We link Sam because of many of his insights are keen and because we respect his…(To read on, go to http://slabbed.wordpress.com/)
Sam, it seems that, like many of the issues we face in the insurance industry, the companies can’t seem to get on the same page. The industry’s reputation, however, is one that we all simply have to come together on and “pull on the oars in the same direction at the same time.”
I spent many years in the great Northwest when a now defunct organization known as the Western Insurance Information Service (WIIS) did exactly this. Supported by member insurance companies, WIIS had a very active speakers bureau that provided men and women from insurance companies who spoke to school classes, service clubs, radio call in shows and any other organization that had interest in hearing about insurance.
WIIS had a paid Executive Director who was adept at representing the industry on many issues when the local media had questions about insurance or wanted an industry perspective on current legislative proposals. We also produced loss prevention videos on auto theft prevention, home security and other topics. We sponsored auto crash cars at high school graduation times and at local fairs.
Unfortunately, WIIS disappeared when it was absorbed by a large, national insurance organization.
These are just some examples of what can be accomplished by our industry if we will only work at it and not simply brush off our reputational problems.
Changing our industry reputation requires had work and a strong will to continue the work over the long term. This is not something that will respond to a quick fix, but if we do nothing, then we deserve what we get.