Last week I blogged about the big disconnect between what the insurance industry publicly says about itself in traditional advertising, and the way it actually conducts itself.

This week I was interested to read something that seems to confirm my assuptions that we all need to be more transparent, at least according to what thousands of people are saying.

Edelman's 13th Annual Trust Barometer measures the public's faith in various institutions, industries and individuals. The global study of nearly 32,000 adults, conducted in 2012, looks at how consumers view government and private industry, and the news isn't good. In a ranking of 11 industries, financial services came in dead last–even trailing the reviled banks–with only 50 percent of respondents saying they trusted it.

Here's the ranking:

Technology (77 percent; 79 percent in 2011)
Automotive (69 percent; 66 percent in 2011)
Food and beverage (66 percent; 64 percent in 2011)
Consumer packaged goods (65 percent; 62 percent in 2011)
Telecommunications (62 percent; 60 percent in 2011)
Brewing and spirits (62 percent; 59 percent in 2011)
Energy (59 percent; 53 percent in 2011)
Pharmaceuticals (58 percent; 56 percent in 2011)
Media (53 percent; 51 percent in 2011)
Banks (50 percent; 47 percent in 2011)
Financial services (50 percent; 45 in 2011)

Not surprisingly, the survey also reveals that CEOs aren't topping the list of individual spokespersons we trust. Only 18 percent of respondents trust business leaders to tell the truth, while only 13 percent trust government officials to do the same. The most trusted spokespeople from companies are:

Academic or expert (69 percent; 68 percent in 2011)
Technical expert in company (67 percent; 66 percent in 2011)
“A person like you” (61 percent; 65 percent in 2011)
Financial or industry analyst (51 percent; 46 percent in 2011)
NGO (non government organization) representative (51 percent; 50 percent in 2011)
Regular employee (50 percent; 50 percent in 2011)
CEO (43 percent; 38 percent in 2011)
Government official or regulator (36 percent; 29 percent in 2011)

Although individual results and overall trust are on the rise–overall results are up to 57 percent this year from 51 percent in 2011–the financial services numbers are certainly nothingn to rave about.

The Edelman study acknowledges that there is a “built-in bias” for particular industries, with industry category, nationality or location or headquarters, and size playing a major role in determining trust levels.

For example, technology and automotive may be covered by a “trust halo” conveyed by perceived success and new product flow. Developed countries trust small businesses more than large businesses, and companies headquartered in emerging countries are perceived as less trustful.

Logical? Maybe not. But if Apple's cachet can lend a halo effect to technology as a whole, then certainly the scandal-ridden banking and investment industry will help cast a pall on the whole financial services sector.

Besides acting ethically (duh), what can an industry do to encourage trust?

The Edelman study encourages using a new dynamic called the “diamond of influence.” Instead of vertical communciation from a CEO to the general population via the “elite media,” companies need to communicate horizontally by engaging social activists, action consumers and employees in the dialogue, using all forms of media in their efforts.

The Edelman study recommends “inclusive management,” in which CEOs and government officials:

Establish a vision and transparently share reasoning, purpose and results
Enlist a broader range of advocates, including employees, action consumers, social activists, academics and think tanks, seeking their input and reaction
Embrace all channels of communications, actively listening to new voices of influence, and adapting
Shift from vision to implementation with transparent measures guided by continual engagement.

In light of last week's blog, the second and third points are especially resonant.

Independent agents and brokers are in a unique position to help burnish the industry's image because they work so intimately with the customer. And there's plenty of anecdotal evidence that although buyers may not trust a monolithic insurer, they view their agent or broker as a trusted advisor, a neighbor, a friend.

If that isn't trust, what is?

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