They say the first step in solving a problem is admitting you have one. If that's true, then insurers took a giant leap by confronting their reputational troubles during a recent conference.

The Property Casualty Insurers Association of America held their annual Executive Roundtable in San Antonio, and yours truly was on hand to join a panel discussion on “Reputation Management.”

I give PCI a lot of credit not only for having the guts to address the industry's lousy image, but for allowing me to participate. PCI has never invited press to this event, where CEOs gather to share information and swap war stories about the economy and insurance market.

(Before Bob Hunter of the Consumer Federation of America calls to complain about the propriety of insurance executives conspiring under one roof, PCI was scrupulous in reminding attendees about their legal responsibility to keep discussions general and be cognizant of antitrust restrictions at all times.)

I was invited because I've been giving speeches and writing columns for anyone who'll listen about how the industry should stop playing rope-a-dope with critics and start fighting back to reclaim its identity.

Some at the meeting kept their heads in the sand, insisting the negative perception of this business will never change–or worse, questioning whether the industry's reputation is really all that bad. However, most were eager to launch a counterattack.

On my panel, Steve George, executive vice president of AAA of Northern California, Nevada and Utah, urged carriers to “launch a campaign on how insurance makes your lives better.” He said the public, press and elected officials need to be educated about how the industry helps promote a more secure workplace, as well as safer cars, homes and commercial buildings.

Another panelist–Kelly Kenneally, a communications consultant–said insurers should form speaker bureaus and get their people into the field to address business and community groups, touting the contributions insurers make to the economy and society.

I was heartened by the response to my pitch that carriers enlist the help of all their employees as goodwill ambassadors by training them and providing talking points to help them defend their business among friends and neighbors.

When I've suggested this before, most people balked, insisting their corporate counsel would never allow such a thing. Some told me their firms go so far as to prohibit anyone but authorized personnel (usually PR and legal) to say anything about the company to anyone. But at PCI, many attendees liked my idea.

One noted that “formal opportunities to respond to attacks on the industry are limited, but informal opportunities are unlimited.” Another said “it is na?ve to think people are not talking about the company outside of work,” adding that “it makes more sense to provide them with the ammunition they need to properly defend themselves and their profession.”

A third said “you can't give in to the tyranny of the attorneys,” adding that “if we craft our message only in the way the lawyers say is acceptable, we're all going to be in a lot of trouble.”

Insurers shouldn't behave like turtles, retreating into their shells until attackers go away. Defend yourselves! Better yet, go on the offensive!

Consider the wise words of one PCI attendee, who said: “There is no place to run and no place to hide. We have to address our reputational challenges head on if we have any hope of getting our message out.”