With the perception around insurance currently in the spotlight, particularly after the murder of a CEO, a new report has emerged that surveys how the industry can better gain the trust of the public.
The Chartered Insurance Institute (CII) New Generation Programme 2023/24 London Market Group has released a new report examining how the insurance profession can bolster public confidence.
The report analyses the sector’s response to significant global and national events, identifying three key principles – namely collaboration, certainty, and creativity – as central to enhancing public trust in insurance.
The report also evaluates the reputational impact of the London Market’s response to events such as the war in Ukraine, IRA bombings, and the notable Grenfell Tower disaster.
The third incident, which happened in 2017, saw 72 dead and hundreds injured; it was declared the worst residential fire in the UK since the Blitz in World War II.
The CII further highlights the Ukraine Grain Facility and PoolRe as examples where the insurance sector’s actions had a positive effect on public perception, citing these initiatives as demonstrations of industry expertise and innovation that benefited society.
In contrast, the insurance response to the Grenfell Tower disaster was noted as having negatively impacted the sector’s reputation, with a lack of market collaboration cited as a factor in the failure to provide a fair, affordable, and timely resolution. As late as last year, specialists are quoting the incident as fire safety failings persist more in the country.
The report goes on to suggest that the London Market should apply the principles of collaboration, certainty, and creativity to emerging risks, such as systemic cyber threats, to develop solutions that reinforce public trust in the insurance profession.
The 2023 version of the Institute’s Public Trust Index did reveal some good tidings for trust in the industry, as it showed record-breaking customer satisfaction level for a particular type of insurance – travel insurance (87% satisfied).
Motor and building/contents are also widely trusted, with 85% and 81% satisfaction, respectively.
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