NEW YORK–The insurance industry is often too fragmented, timid and lackluster when delivering messages through the media, and new public relations strategies are needed to defend insurer interests and educate the press, a business journalist and a regulator advised yesterday.
That description emerged in comments by Connecticut Insurance Commissioner Thomas Sullivan and Sam Friedman, editor in chief of National Underwriter, during a panel discussion at the Property/Casualty Insurance Joint Industry Forum.
The insurance industry, Mr. Friedman said, has a "huge hole" when it comes to getting messages out through the media. He said insurers should effectively and aggressively promote the good they do in society and in the economy.
Too often, he said, the industry allows others to dictate the message that gets to the media–such as the focus on the 2 percent of claims that were not paid after Hurricane Katrina rather than the 98 percent of claims that were paid.
He added that the industry never hits back against accusations. Instead, Mr. Friedman said, the industry lets its accusers hit it, continuously hoping that the attacks will eventually go away.
The Insurance Information Institute–in particular its president, Robert P. Hartwig–has done a "fantastic job" with consumer outreach and defending the industry, Mr. Friedman said, but the III cannot and should not have to defend the industry by itself.
"The industry can do better than just be represented by a sassy gecko and sourpuss caveman," Mr. Friedman said. "If that's the best the industry can do, that's sad."
Commissioner Sullivan agreed that the industry needs to do a better job educating the media and others on insurance issues. He said he has taken on the role of educating reporters that call him because the industry is lacking in this area.
But he said he cannot be deferential to the industry, because he is charged with protecting consumers at the end of the day.
Mr. Sullivan noted that many media interviews that should take 5-10 minutes and up taking 40 minutes because he has to educate reporters that call him on insurance issues.
He cited the trade press and a full-time beat reporter in Connecticut who focuses on the insurance industry as exceptions.
Charles M. Chamness, president and CEO, National Association of Mutual Insurance Companies (NAMIC), who moderated the panel discussion, said insurers are faced with the challenge of trying to fit effective public relations in as a priority while dealing with all of the other struggles the industry is facing.
He also noted that while the industry as a whole is not loved by the public, individuals generally react favorably when asked about the service of their specific agents or companies.
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