Insurance industry makeover

It’s not difficult to figure out why the insurance industry has experienced a “crisis of trust” among the public in the last three years. Challenging market conditions, rising rates and availability problems came together in a “perfect storm” that lashed virtually every insurance organization. Most importantly, it put our industry in a negative public spotlight and severely curtailed our credibility with consumers at the same time they were going to the polls to elect provincial leaders. The media capitalized on the stories one consumer at a time.

Public polling we have done clearly shows a diminished level of trust among Canadians in our industry. Survey results pinpoint when exactly we started losing the trust of consumers. We have to tell ourselves the truth about these results. We have to listen to the public. And we have to do something about it.

This process of restoring consumer confidence has, in fact, already begun. We are encouraging all members of the insurance industry to participate in these ambitious initiatives and to stay informed.

RESTORING TRUST

In June, the Insurance Bureau of Canada (IBC)’s board of directors gave clear support for and a broad mandate to undertake the ‘Restoring Consumer Confidence’ initiative. A vital part of this strategy is the understanding that we must proceed on both an intellectual and emotional level to change public perceptions. Insurance is not the first industry to be cast in a negative media and consumer light, whether fairly or unfairly. And we know from research that other industries have offered fresh perspectives by running concurrent intellectual and emotional programs. IBC’s board of directors and a coalition of insurers support a similar model for our industry.

INTELLECTUAL APPEAL

The intellectual component of this initiative is captured in an accelerated media and government relations plan. IBC is engaging the media to ensure they more accurately report about our industry and our stories. Difficult market conditions spawned not just negative media coverage, but also intense government scrutiny. We are working closely with both provincial and federal government representatives to ensure they understand the complexities of the business. These efforts will continue in the months ahead.

We are also challenging widespread, erroneous reports that compare auto insurance rates across Canada. Specifically, we have strongly refuted the methodology and conclusions of a recent Consumers Association of Canada study, which contains numerous errors and discrepancies in data associated with several provinces. Such distorted “reports” spread misinformation instead of encouraging open, constructive debate about potential insurance reform.

The intellectual messages are pivotal to promoting a better understanding of property and casualty insurance, its products, and the role of insurance in society.

EMOTIONAL APPEAL

Our research, however, also told us that although the public wants to know more about how industry works, this information must be coupled with emotional and caring messages. That is why we are focusing on supportive and helpful safety messages to connect with consumers.

On October 25, IBC launched a National Injury Prevention Campaign to reinforce the message that most injuries are preventable. The community-based campaign is traveling to towns across the country to show Canadians what they can do to prevent injuries in the home, on the road andat play.

Every day, about 6,000 Canadians are injured and almost 40 die as a result of their injuries. Injuries cost Canadians an estimated $14.7 billion every year in health care expenses and lost productivity. We are pushing the federal government to commit to a national injury prevention strategy. But we’re going beyond that. With our Injury Prevention Campaign, we will speak directly to Canadians about what they can do themselves to avoid injury. Our theme is: “Be Smart. Be Safe.”

This industry has a long history of working with provincial governments and safety organizations to make our communities safer for everyone. Whether by promoting seatbelt legislation, anti-drinking-and-driving campaigns, or graduated auto licensing, home, car and business insurers have always been proponents of injury prevention.

The “Be Smart. Be Safe.” program reinforces this commitment to prevention and builds on our tradition of safety advocacy.

The first of many stops on the injury prevention campaign was Truro, Nova Scotia. The insurance industry was highly visible during the community’s injury prevention week from Oct. 29 to Nov. 5. Events included a dramatic ice rescue, a driver distraction display, a demonstration of proper helmet use and a safety expo featuring a host of activities and games for kids and grown-ups about injury prevention in the home, on the road and at play.

In the New Year, we will be truly taking the injury prevention program on the road, with scheduled stops throughout the winter and spring.

IBC spent much of 2004-05 researching and testing the most effective ways to reach Canadians with the messages of injury prevention that they identified as being important to them. It was determined that the one-on-one, in-the-community approach had the most significant impact. Tailoring activities to the priorities of the community creates the best opportunity to reach as many people as possible while reinforcing the important work already undertaken by local volunteer safety groups.

So that’s what the “Be Smart. Be Safe.” campaign is all about — seasonal and regional injury prevention ideas, techniques and demonstrations. The idea was first tested in North Bay, Ontario. Encouraged by their local safety organizations, people in North Bay learned, for example, about safe snowmobiling, the importance of wearing the right head gear while skiing and the value of snow tires when driving in the winter.

ACTING LOCALLY

Reaching consumers in the communities where they live is an important element of our work; it is also vital to make all Canadians aware of these community-based initiatives and their important safety messages. To that end, the “Be Smart. Be Safe.” program will bring these messages to all Canadians through a national advertising presence. In addition, Qubec-based insurers will support the loss-prevention, “Prevention for Peace of Mind,” campaign throughout Qubec.

The “Be Smart. Be Safe”. program reinforces our industry’s long-standing pledge to prevention. But what does this mean to those working in the insurance industry? The sponsorship and guidance of this campaign comes directly from the CEOs of several large insurance companies. Implicit in the message is the belief that everyone associated with the insurance industry – company employees, adjusters or brokers – can act as ambassadors. We want to get the word out to consumers in as many ways as possible, through employees, through company websites, through company mailings, and through the one-on-one encounters with friends and families at times when conversation turns to industry issues.

The million-dollar question for our Restoring Consumer Confidence program is simple: Will it work? Based on research, we believe that community outreach, leveraged with national advertising and an aggressive media relations effort, can be a very effective form of consumer contact. Our test community outreach initiative in North Bay in February yielded 75 positive media hits in three weeks, reaching over 600,000 consumers, while our dedicated website received more than 17,000 hits. This coverage was augmented by our successful joint participation with local government and longstanding prevention groups. We are just now gathering the results from our outreach program in Truro and look forward to building on this information in the future.

This combination of community outreach (emotional) with an aggressive media and government relations plan (intellectual) is a powerful f
orce in the creation of a reservoir of goodwill that affects our positioning with consumers and governments. Insurers across the country recognize this relationship of trust as important.

We still have work to do, and Canada’s car, home and business insurers will lead the charge in the months ahead. We want to encourage all members of the industry to embrace the role they have to play in restoring consumer confidence.

Our next stop may just be your local community.