I have a feeling I'm going to get a lot of flack for my cover story in the May 26 edition of NU about how the property-casualty insurance industry can solve its image problem.

My piece is based on a presentation I've been making over the past two years to groups of carriers, agents and consultants on “The Insurance Industry's Reputation and Its Impact on the Bottom Line,” which was developed and tweaked in blog entries like this one, columns I've published in NU, and thanks to feedback from readers.

(You may read my cover story online at this address: http://www.property-casualty.com/Issues/2009/May%2025%202009/Pages/Insurers-Can-Polish-Their-Image-While-Boosting-Bottom-Line.aspx.)

Everyone has listened respectfully, but I am not convinced I've been getting through to people who are most often skeptical at best and cynical at worst about the prospects for convincing any “civilians”—those outside the industry—that insurance is anything but evil incarnate.

What has disturbed me the most, however, is that whenever I have published a column, posted a blog, or delivered a speech on this topic, at least a handful of folks accuse me of biting the hand that feeds me and taking sides with “the enemy”—the hostile consumer advocates, the media that's out to get them, and the politicians more interested in grandstanding than in the truth.

But the fact is that I beat up on the industry so thoroughly because I do care about those who read this publication and our online brand extensions. I understand that while insurers and their agents do bad things sometimes, that's no different than any other business—journalism included.

Indeed, I sympathize with the plight of the insurance industry, as perhaps only those in banking and the media have a worse reputation.

Yes, my colleagues in the consumer press are too often uninformed about how the insurance industry works and all the good it does for society. There is bias, sensationalism and sloppy reporting. But I know that most journalists are just trying to do a good job of keeping their audience informed about the most important news and trends of the day, in an objective and honest way.

The same can be said for those laboring in the underappreciated insurance industry. Yes, there are carriers that drag their feet when paying legitimate claims, and brokers who have conspired with insurers to rig bids or steer business to wherever they can get the best contingency deal.

But to argue that such behavior is the norm rather than the exception would be the same as arguing that all claimants are out to defraud their carriers.

Obviously, that is not the case, as the overwhelming majority of claims are fair and square, filed by those who only want what they paid for—just compensation for their loss. But to get the public to think of insurers as people of similar good faith is quite a challenge, given the misperceptions and stereotypes accepted by far too many as fact.

I have a number of concrete suggestions for insurers to consider that could help the industry improve its perpetually tarnished reputation. At the very least, if even some of my ideas are implemented, I believe the press and public might be more inclined to give the industry the benefit of the doubt.

So please check out my cover story and let me know what you think. But if you find yourself questioning my motives or feelings toward the insurance business at any point, keep in mind that if you can't depend on your friends to give it to you straight, who can you trust to do so?

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Time For Some Tough Love On Industry&#039;s Image

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