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Sector must tackle SME reputational cover shortfall

The CII Insurance Broking Faculty New Generation group is calling for industry wide action to address the gap in reputational risk protection for Small and Medium size Enterprises (SME).

The group's new report details the growing threat of reputational damaging events due to unprecedented advancements in social media and global connectivity.  The report addresses the lack of response from the insurance sector to mitigate developing risk; analyses the difficulties in offering reputation damage cover and puts forward practical solutions the sector can and should adopt.

The group's recommendations, following 18 months of research are:

  • Data capture and collection must be developed to allow quantification. Insurers and brokers must co-ordinate a shared approach to recording loss data.
  • Brokers must become far more proactive. In their role as risk-advisor they should discuss brand and reputation risk with their clients as a matter of course.

Furthermore, the group have recommended the market should develop  a comprehensive 'Brand & Reputation' solution which should offer four distinct areas of protection:

-       prevention risk management,

-       crisis cost & containment,

-       indemnity protection for Loss of revenue and:

-       post loss consultancy

Nick Kincaid, project manager at Wills Towers Watson, member of the group, said: "The use of social media is exacerbating the extent to which reputation damaging events affect a business. From our research it is clear that this is especially true of SME-sized companies, who at present, are left unprotected.

"Insurance brokers must be prepared to readily discuss this exposure with their clients, and the industry as a whole must devise a concise and cost effective solution to help SME's protect their brand. We hope our report's recommendations can form the basis of a marketable product, or at the very least, help elevate the profile of brand and reputation risk within the insurance industry."

Ant Gould, CII director of faculties, said: "The fact that this group of insurance professionals - the likely future leaders of the insurance broking profession - have identified this issue demonstrates that it is one that should not be ignored.

"It is only by tackling the real risks that customers face that the insurance profession can ensure it remains relevant and continues to do what it has done for centuries - which is support and facilitate the development of individuals and businesses by taking imaginative approaches to covering risk.

"The group has analysed this ever prevalent issue of ensuring the security of SME's reputation and I urge the profession to act on the groups work."

 

ENDS

Contacts:
Georgina Gold, public relations executive

georgina.gold@cii.co.uk

Office: 020 7417 4447

Mobile: 079 1873 5107

 

David Ross, director of communications

david.ross@cii.co.uk
Office: 020 7417 4478

Mobile: 075 454 01788

 

 

 

Notes to Editors:

The CII


The CII is the world's leading professional organisation for insurance and financial planning. Its more than 120,000 members are committed to maintaining the highest standards of technical competence and ethical conduct.

A robust framework of learning and development solutions enables the CII to support corporate partners and individuals across the industry. It ensures that all members comply with minimum standards and inspires many more to achieve advanced levels of technical and professional competence.

 

Follow the CII on Twitter, where you will be kept up to date with latest press releases, media appearances and expert commentary: www.twitter.com/CIIGroup

 

 

New Generation Groups

The New Generation initiative is part of a faculty strategy designed to support the retention of talent and give the individuals selected additional exposure to market issues and tools to equip them for future leadership opportunities.

 

 

The list of members of the New Generation Broker Group 2015 are as follows:

 

First name

Surname

Job title

Company

Paul

Bartlett

Account Manager

Thomas Carroll Insurance Brokers

Alexander

Bateman

Broker

Willis Re

Michael

Brett

Broker

TEn Insurance Services Ltd

Andrew

Chibeba

Senior Account Executive

First Insurance Solutions Ltd

Jeremy

Court

Client Director

Bluefin Group

Ed

Day

Broker

JLT Group

Nick

Kincaid

Project Manager

Willis Towers Watson

Louise

Parry

Account Manager

Lockton Companies LLP

Reyhan

Rasyid

Account Handler

Arthur J. Gallagher

Kirsty

Savidge

Assistant Mutual Manager

Regis Mutual Management Ltd

 

 

 

 

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