market reputation

Jamie Marchant
INSURANCE MARKETING & COMMUNICATIONS SPECIALIST

Turning ne words into concrete action

The need for a cross-market task force

Theres never been a more pressing need for a crossmarket task force - a genuine force for good to help deliver the right messages; rebuild consumer trust; and restore the reputation that the insurance business properly deserves. But to be truly effective any effort to boost public image needs to be a collective market endeavour, with the leading trade bodies working together to create the agenda and keep everyone on message and on track. Greater co-operation and collaboration can also help support joined-up thinking and eliminate the damage that hurts market reputation when local point-scoring fails to see the bigger picture. It might also allow the sector to speak more frequently with one voice.

A force for good

Jamie Marchant advocates the need for a crossmarket task force to help deliver the right messages
referral of the 'dysfunctional' private motor market to the Competition Commission; accusations of market profiteering in a recent Dispatches TV programme; and before that, last year's Which? investigation into 'dual pricing' and over-charging customers for policy changes. Add in rising levels of customer complaints; companies being fined by the regulator for claims irregularities; and a spat between BIBA and insurers, and it's probably no surprise that the market's public image finds itself languishing in the doldrums. In fact, according to the 2013 Edelman Trust Barometer only 50% of people now trust the financial services sector to do what is right the same result as the banking industry. Even the media enjoys greater levels of trust. "Not fair..!" the profession may rightly wail. But actually, most policyholders probably think that paying claims speedily and providing valuable protection is exactly what insurers and brokers get paid for. Like it or not, customers perceptions are still more to do with insurers being keen to take the premiums but less than happy to pay out. Unfortunately recent media coverage only serves to reinforce such stereo-typing. Pleasingly though, some insurance leaders are now responding. But how easy will it be to turn their fine words into concrete actions? Changing deeply held consumer convictions takes time, effort, and commitment. It might even call into question some of the market's fundamental thinking:

Is strategy really driven by a genuine desire to meet customer needs? Or is the priority more to do with delivering financial returns? Is the insurance business truly customer centric? Or does it allow itself to blur the focus when it becomes too expensive or inconvenient? Does the market meet the challenge to engage more openly, to listen and learn from customers; and give their needs greater priority? Do business practices need to be overhauled to be more transparent and less bureaucratic? Are products and services easy to understand and access? Could communication be simpler and quicker? Is the challenge and potential of social media being embraced, getting brokers and insurers even closer to clients?

o here's the thing. Insurers have recently stumped up over a billion pounds from last year's poor weather. They've paid up promptly, efficiently, and without complaint. Theyve compensated thousands of customers affected by the monsoon-like weather. In some instances theyve literally rebuilt homes and helped rebuild lives. Yet little of this tangible evidence of the insurance promise finds its way onto the pages and screens of the national media. So it never seeps inexorably into the national consciousness, and fails to create any of the positive image such excellent work deserves. Regrettably bad news travels faster, and the recent insurance headlines have made pretty dismal reading. There's been the OFT's

Such questions might be uncomfortable, but they are also at the heart of the market's challenge to rebuild consumer trust. Excellent progress is already being made in promoting greater professionalism. Impending changes to simplify the archaic law surrounding disclosure are also a major step in the right direction in helping demystify insurance for customers. All of this helps reinforce appropriate behaviours and produce leaders comfortable with the right values and ethics.

20 insurancepeople MARCH 2013