Insurers Gag Their Own Heroes!

Insurers are allowing lawyers to tie their hands behind their backs and gag their most obvious heroes, leaving them defenseless against attacks by their critics and hamstrung in efforts to improve their image. As Exhibit A, I present to you a letter from a reader sharing an interesting personal experience demonstrating the public relations obstacles that insurers face–often of their own making.

My blogs and columns about the need for an iconic insurance superhero to serve as a positive role model and help improve the industry's poor public image prompted a fascinating letter from Donna J. Popow, senior director of knowledge resources and ethics counsel at the American Institute for CPCU and the Insurance Institute of America.

She wrote to say she agrees with me that “the insurance industry has not done enough to improve its image with consumers,” adding that “in my personal experience, the insurance industry does not want to draw attention to itself.”

However, she went on to share the following story that spotlights one of the problems insurers face in getting the word out about all the good they do–obstacles of their own creation, I would point out:

“Shortly after Hurricane Katrina, I was asked to do a spot on a local Philadelphia news station. I talked about what homeowners could do to get ready for a catastrophic event.

“After that spot I went to the producers and suggested to them that the real story coming from Hurricane Katrina was the work of the adjusters on the ground handling claims. They agreed with me, and asked if I could find them adjusters to speak with.

“I contacted several adjusters who I knew were handling claims in Louisiana and Mississippi. Each adjuster I contacted thought the idea was a good one–and each of their employers refused to give them permission to participate.

“As a lawyer, I can understand why; as a claims person, I was bitterly disappointed.

“As an industry we have done very little to publicize the good that we do. Usually the only publicity we get is in a law journal, where even a win for the industry is cast is a negative light because it usually means a policyholder or a claimant isnt getting paid.

“Why shouldnt our industry pat itself on the back for mustering hundreds of adjusters on short notice to respond to a catastrophe? Why shouldnt the rest of the TV-watching, newspaper-reading public learn that these men and womenmany of whom are volunteersleave their families for weeks (or even months) on end to work these catastrophes, meeting with policyholders in extremely stressful situations, and diligently settling claims?

“Why shouldnt the general public learn that these men and women often put their lives on the line when they toil in the toxic landscape of New Orleans after Hurricane Katrina, or in some cases lose their lives–as happened with the murder of Katrina Anne Froeschle while she was investigating a claim in Tampa, Fla.?

“As a lawyer I realize that the insurance industry is reluctant to invite controversy–we are, after all, in the business of mitigating risk. But no industry is perfect.

“After the 9/11 terrorist attacks, we heard stories about firemen who looted goods from stores in the area of Ground Zero. Did that diminish the heroism of the New York City Fire Department? Not in my mind. It simply means that in every organization there are a few bad apples.

“Our industry should stand up for itself and shine a spotlight on those who deserve the recognition, while taking appropriate disciplinary action against those who do not meet our high ethical and professional standards.

“Sam, let me know when you want to start drafting some plot outlines for 'Gotcha!'–which was a program I suggested featuring insurance fraud investigators at work. “If Jerry Seinfeld can have a successful TV show about nothing, we certainly can have one about something.”

This letter really says it all. In past blogs and columns, I have complained about how insurance companies are letting their lawyers tie their hands behind their backs, forcing them to play “rope-a-dope” and take a beating from critics.

The big problem, I noted, is that when Ali employed “rope-a-dope” to defeat the heavyweight champion at the time, George Foreman, his strategy was to let his foe punch himself out, leaving him defenseless once Ali began his furious counterattack.

With insurers, however, the strategy seems to be to let critics keep beating on them until they just get tired and go away. Insurers never fight back.

It's time to change that! Don't let the lawyers gag your people! This industry needs all the goodwill ambassadors and heroes it can get!

What do you folks think?