This post is part of the People’s Insights monthly briefs issue of January 2014.
In 2013, the Insurance Journal listed Reputational Risk Policies as one of the Top 10 Hot New Markets in the insurance field. As geographic boundaries shrink and digital technologies shift power to customers, protection of brand reputations has become ever more important. While rolling out the Allianz Reputation Protect product in 2012, Allianz quantified the value and risk of a reputation as such:
- 24% of a company’s value is in their brands
- Any listed corporation faces an 85% likelihood of experiencing a significant corporate crisis in any 5-year interval
- Companies which manage to transform crises witness a 10% gain in share price the following year, while those who fail witness over a 15% drop in share price in the same period (Oxford Metrica)
How it works
The Allianz product offers a coverage of up to €10 million and supports companies in putting together a professional response that addresses all stakeholders across multiple media channels.
Companies that avail of this product undergo a reputational risk assessment and workshop provided by Media Tenor International. Companies are then encouraged to take preventive steps before a crisis hits. Should a crisis arise, companies would have 24/7 access to a panel of crisis management experts and global service network, generous limits to fund a response – including production of PR and advertising, media spend and legal fees. Allianz also offers to personalize the product to suit a company’s individual risk profile.
Benefits of reputation policies
Five insurers offer reputational risk policies today. The initial analysis, preparation of a response plan and access to funds will help shift companies to the offensive when a crisis strikes. In the long run, insurers will no doubt contribute to the measurement and analysis of reputation, as they begin to, literally, put a cost on reputation.
In January 2014, Allianz announced an expansion of its reputation policies, with the Allianz Cyber Data Protect. This product insures against cyber attacks, specifically against the cost of responding to the attack and restoring data, losses that arse from business interruption and civil liability claims that arise as a result of data privacy violations. The product offers coverage of up to € 50 million.
About People’s Insights
100+ thinkers and planners within MSLGROUP share and discuss inspiring projects – that are driving engagement with stakeholders – on the MSLGROUP Insights Network. Every month, we pick the best projects and analyse conversations around them, on the MSLGROUP Insights Network itself and also on the broader social web, into an insights report. Every quarter, we compile original insights from the MSLGROUP global network into the People’s Insights Quarterly Magazine.
In our first year and half, we focused on inspiring consumer projects around social data, crowdsourcing, storytelling and citizenship. We synthesized the insights to provide foresights for business leaders and change-makers in the ten-part People’s Insights annual report titled Now & Next: Ten Frontiers for the Future of Engagement, also available as a Kindle eBook and an iPad app.
In 2013, we launched “The Future of” series with a focus on Citizenship, Money and Employee (Re)Engagement. In 2014, we continue to track inspiring projects that are shaping the future of engagement, with a focus on reputation, employee engagement and citizenship.