What might insurance company CEOs learn from Monty Python's “Spamalot,” you might ask? NU Associate Editor Mark Ruquet filed a column in this week's NU in which he made the leap, arguing that by listening to their legal departments more than their PR and marketing experts, they end up doing their images more harm than good, and undermining their reputations in the long run. Read on and feel free to offer your own take.

Spamalot Teaches Insurers
Valuable Marketing Lessons

BY MARK E. RUQUET

I recently saw Monty Pythons Spamalot on Broadway, a stage musical version of the movie Monty Python and the Holy Grail. One of many hilarious scenes has a line of robed monks walking in a line, reciting some innocuous, Latin-sounding chant while holding a huge book in their hands. In between chants, they smack themselves in the head, repeatedly.

A few days later I jetted off to the annual conference of the Insurance Marketing Communications Association in Cincinnati, where I appeared on a panel with Jack Roberts, editor-in-chief of Risk & Insurance, and Dennis Pillsbury, associate editor of Rough Notes, to discuss the relationship between the press and the industry.

I walked away convinced that when it comes to communicating with the public and the media, there are more than a few insurance company managers who act like Monty Pythons monks–mouthing a message publicly that is often difficult to understand, while smacking themselves in the head repeatedly with legalese protections.

Now dont get me wrong, the industry has developed some very effective marketing tools over the years. Take such branding campaigns as Allstates The Good Hands People and State Farms Like a Good Neighbor, both of which conjure up images of strong insurers whose aim is to protect the cherished property of policyholders.

Liberty Mutual is in the midst of building its own strong branding recognition with its Responsibility ad campaign–which garnered the SAMMY Award, as voted by the members, at the IMCA conference.

There was plenty of evidence at the conference that shows some managers get it.
On display were marketing materials that insurers have developed to promote their products. It was some impressive stuff, and clearly underscored this industry is very aware of the need to distinguish one insurer from another. The question is, who is the audience they are trying to reach, and how much–beyond dollars–is management willing to commit to the effort?

What struck me during the IMCA editor workshop was the enthusiasm among those in the room from insurer public relations, marketing and advertising departments, eager to promote their company and its message. But I got the distinct impression that some in senior management are unwilling to listen to marketings ideas. Instead, the top dogs seem to pay more attention to their legal departments.

While I guess that would make sense in this litigious society, one must ask whether there might be fewer lawsuits against the industry if there was greater understanding about insurance among the general public.

This is a business, after all, and the primary duty of any chief executive is to protect the corporation. However, too often, the cautious nature of some insurance executives produces statements couched in legalisms or befuddling shop talk that confuses and even alienates the public.

Such double-talkor no communication at all–only produces misunderstanding and suspicion. Among cynical reporters, confusion and misunderstanding lead to doubt and distrust of a carriers message.

The press is not the enemy, but a muddled message or a constant stream of no comment statements do not make any friends among the media, either.

However, there is evidence some companies out there understand how important a decent marketing message is.

Belmar, N.J.-based CIM–an insurance and financial services marketing consulting firm–did an online survey of insurance marketing professionals, querying 73 companies in all. Thirty-six percent said their 2008 budgets have increased, while 34 percent said it remained the same. The remaining 30 percent said their budgets decreased.

Growth was the number-one objective among 52 percent of those surveyed. Brand awareness came in second at 17 percent, and other issues trailed far behind.

To show their commitment to getting their message out, 52 percent said they have increased staffing, while 38 percent reported maintaining the status quo, and only 10 percent decreased their marketing staff.

Like most jobs today, marketing executives are being asked to do more–71 percent said their roles are changing, with 57 percent seeing an expansion of their duties and responsibilities.
Sixty-four percent said their companies are outsourcing to marketing communications firms or ad agencies.

Interestingly, when asked about the challenges in outsourcing, the Ability to generate ideas, not just take orders was number one at 31 percent. The next highest challenge was evenly split at 26 percent of respondents between Ability to deliver within budget and Time required to bring them up to speed on our business.

Maybe if insurer CEOs listened more attentively to their marketing people, they could produce the success Liberty Mutual is seeing with its ad campaign.

In a talk about his companys development of Libertys Responsibility marketing campaign, Steve Sullivan, senior vice president of communications for the Boston-based insurer, discussed how the ads hit a chord with the public.

The commercials–promoting the Liberty Mutual brand–is being used in lectures by religious leaders and educators on respect and responsibility, and even got mention during highly-rated television programs to illustrate the point, Mr. Sullivan reported.

He described how someone sent the company a check for $25 to be used toward the campaign. He said he jokingly went in to his boss and showed him the check, saying this was proof that the marketing department could produce revenues.

Yet behind the joke there is a message: Value cannot be measured by revenue production alone. And good communication advice can produce solid dividends, if senior management would only listen.

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