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Corporate Reputation And Effective Communication


July 31, 2009   by Lori Brassell-Cicchini


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As significant catastrophes make their way into headlines, adjusters must be well-prepared to handle the media after an event occurs.

Canada’s headline news has reported some significant environmental catastrophes in recent years. Fortyfour peanut-related products were recalled from a plant in Mississauga, Ont. after Salmonella sickened consumers. A massive explosion devastated a plant in a Northern Toronto propane facility leading to the evacuation of 12,000 people, including workers and local residents. Sydney Tar Ponds were identified as a hazardous waste site in Nova Scotia.

As these and other dramas were played out in the media, catastrophe claim adjusters worked tirelessly behind the scenes to manage the claims and losses in an effort to minimize the negative impact to the company involved.

Catastrophe claim adjusters specializing in man-made losses recognize that they operate as a representative of the company they represent. In this critical role, it is important for adjusters to know, understand and be able to execute on the company’s established protocols for dealing with a catastrophe. Perhaps, most important, adjusters need to be aware of the potential effect their actions could have in preserving the integrity of a company’s reputation and image.

Communication is a big piece of the complicated catastrophe management pie. Managed well, communications can help minimize negative consequences to the brand, reputation and financial strength of the company. For this reason, most companies have developed proactive strategies for making public statements or dealing with informal communications with employees, claimants and other key stakeholders.

Linking the company’s need to manage the catastrophe with the public’s desire for information becomes a high priority. So, how do these adjusters know what information to convey, with whom, and when?

Corporate side of crisis communications

Most companies contemplate the possibility that a catastrophe could happen at some point in time. In preparation, they develop operational procedures and a detailed communication plan. The plan usually discusses the company’s communication philosophy with regard to its stakeholders, maps specific communication channels and designates spokespersons. In general, good communication plans follow these simple rules:

• Preparation: Assume the worst-case scenario and be prepared.

• Careful candor: Engage legal counsel to develop appropriate messages regarding the acknowledgement of responsibility.

• Identify key messages: Select one or two key things that you want your audience to know.

• One voice, one message: Designate spokespersons and make sure they are prepared to deliver consistent messages.

• Be factual: Be sure spokespersons know all of the relevant facts. Instruct them never to speculate.

• Provide regular updates: Know how to collect and disseminate relevant information as events unfold.

• Respect the media: Stick to your message when communicating with the media. Maintain your composure when asked difficult questions and do not try to manipulate the interview.

•Avoid no comment: This statement always sounds defensive and evasive.

Adjuster’s side of crisis communication

Often, the claims adjuster is the first company representative to speak to a claimant.

Experienced claim adjusters understand the fundamentals of proper communication. First and foremost, they know how to locate their company’s crisis communication plan so that they can study the procedures and be prepared to handle whatever communication challenges come their way.

Below are some guidelines that adjusters can use when dealing with claimants. Keep in mind, the adjuster’s job is to do what they can to assist the claimant, while helping to preserve the company’s reputation and assets.

• Follow the company guidelines: Prior to meeting or speaking with claimants, it is important that adjusters be well-versed in the company’s public position about what happened, why it happened, what is being done about it. Most companies tell adjusters exactly how they want this information presented to claimants.

• Don’t guess or improvise messages: Sometimes, adjusters are asked questions they are not equipped to handle. It is okay to tell the claimant that you don’t know the answer. At the same time, this is an opportunity to build credibility by assuring the claimant that you will try to find out and get back to them in a timely manner. Adjusters should never speculate or make up responses on their own. This may jeopardize the company or its agents.

• Avoid jargon: Don’t use acronyms or other language that may be confusing or open to misinterpretation. Furthermore, be considerate and take the time to explain the process to the claimant so they will understand what you are doing and why.

• Listen to the claimant: In many instances, catastrophic losses affect many people inside and outside of the company. Discussing the event with you may reveal useful information that can be used to help settle the claim. In addition, this will help identify the need for critical incident counseling. The company may want to consider providing these services as they work to preserve their image and reputation.

• Follow up: Maintaining good public relations over time may be necessary. Claim adjusters who remain in close contact with claimants are better informed and are able to address important issues that may arise after the fact. In addition, this is an opportunity to gather intelligence and create good will for the company.

• Be discrete: Do not discuss the company’s losses in public. Keep sensitive information to yourself. Discuss claimant information only within company walls with individuals who share responsibility for the company’s claim experience.

When any company is faced with a catastrophe, there is bound to be some degree of internal turmoil and service disruption.

The claim adjuster can be the company’s most valuable asset by understanding their valuable role in managing claims and losses while being good stewards of the company’s most important asset — its reputation.

Lori Brassell-Cicchini is vice president, ESIS Catastrophe Services, where she oversees the catastrophe-services program. ESIS, Inc., is the risk management services company of ACE Group.

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