Reputation Insights for US Insurance Sector

US-Insurance-RepTrak-TopTenWe recently presented the results of the 2017 US Insurance RepTrak®. In addition to releasing the Pulse scores and rankings of 44 insurance providers, we also shared trends that demonstrate the changing priorities of stakeholders within the US Insurance sector. [ Get the report ]

For an insurance company, having a strong reputation is important, because it ensures customers will do business with you, policymakers and regulators will give you license to operate, and potential employees will be more willing to work for you. In 2017, the reputation of the insurance industry as a whole improved to a strong Pulse score of 70.7. However, the double-digit gap in the reputations of the strongest and weakest performers indicates a wide range of possibility and increased need for individual company differentiation.

“Volatile reputation results for the industry over the past decade clearly show how external economic and political events impact insurance sector reputation. From a reputation perspective the insurance sector is playing defense: there is an opportunity to be more proactive by addressing priority areas and aligning to factors that positively impact reputation.”

nickymchugh

 

Nicky McHugh
Vice President and Consulting Director, US
Reputation Institute

 

US Insurance: Stakeholder Priorities

The same dimensions comprise the 3 most important drivers across insurance industry sub-segments, although their importance does vary. Products/Services, Governance and Citizenship are the most important drivers of reputation in US Insurance. Our data also shows that a 5 point increase in Pulse scores can lead to a 6 – 9% increase in a stakeholder’s willingness to recommend your insurance brand. Therefore, companies wishing to improve their reputations need to focus on improving their performance within these three areas (marked in blue segments below) while differentiating themselves from competitors.

Insurance-dimension-priority-by-sector

The three wheels above show the the varying importance of dimensions within the US Insurance sector. The three dimensions in blue represent the most important dimensions and ultimately, the biggest drivers of Pulse score and overall corporate reputation.

Manage Reputation Risk in US Insurance

We identified 7 common or current risk factors within the insurance sector as well as case study data that quantifies the impact of these risks on reputation. These risks include:

  1. CEO resignation following financial scandal
  2. Significant layoff
  3. Failure to meet financial targets
  4. Product issues
  5. Lack of confidence in leadership
  6. Low community and cultural sensitivity
  7. Privacy violation

[ Download the 2017 Insurance RepTrak® for more on these 7 risk factors. ]

About the Insurance RepTrak® Study

The Insurance RepTrak® measures the US public’s perceptions of 44 major insurance companies. Reputation scores were based on 4,820 ratings drawn from the informed general public, with only people who were familiar with insurance organizations being qualified to answer. The study measures the general public’s perception of where the company stands on seven key rational dimensions of reputation: products and services, innovation, workplace, governance, citizenship, leadership and performance.

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