The Insurance Broking Faculty new generation group is calling for brokers and insurers to rise to the challenge of providing brand and reputation risk protection for small and medium sized enterprises.
The group's in-depth and well researched paper looks in detail at the need for brand and reputation risk cover; the barriers to insurer participation; the level of coverage currently available; and most importantly how the insurance industry can and should respond.
With a view to driving change rather than just highlighting the issues, the report, Reputation Risk in a Social Media Culture, includes a breakdown of four elements of protection that the group believe a brand and reputation risk policy should cover, namely: prevention risk management; crisis costs & containment; indemnity protection for loss of revenue; and post loss consultancy.
The group's recommendations also include a call for data capture and collection to be developed to allow quantification, with insurers and brokers co-ordinating a shared approach to recording loss data.
In the short-term however, and in the absence of an insurer developing a suitable product, the report argues that the insurance industry should pull together to address the issue. The group suggest the establishment of "a facility to allow the pooling of 'Brand & Reputation' risk across the UK.
The group's view is that once the insurance industry becomes more comfortable with brand and reputation risk, and as data becomes available, the industry will revert to a more traditional distribution model. "This would allow for insurers to begin offering 'Brand & Reputation' cover by way of an extension to Commercial Combined or Liability policies. In the mean time more insurers could provide policy extensions to assist SME companies in prevention, mitigation and crisis management."
The New Generation Group do not want their report to languish on a website gathering proverbial dust and despite the fact that the members of the group have now technically finished the CII programme, they are determined to drive real change and are actively engaging with insurers to garner support for credible insurance solutions to meet this clear customer need.
2015 Insurance Broking Faculty New Generation Group members
- Paul Bartlett, Thomas Carroll
- Alexander Bateman, Willis Re
- Michael Brett, Ten Insurance
- Andy Chibeba, First Insurance Solutions
- Jeremy Court, Bluefin Group
- Ed Day, JLT Group
- Nick Kincaid, Willis Towers Watson
- Louise Parry, Lockton Companies
- Reyhan Rasyid, Arthur J Gallagher
- Kirsty Savidge, Regis Mutual Management