“I'd like my life back.” Oh, my goodness. You could almost hear the collective gasp of every journalist, PR person, and blogger when BP CEO Tony Hayward uttered those words on May 30. Not long after — and following an equally infamous appearance at a Congressional hearing — he got his wish. The face of the Deepwater Horizon oil spill was sent packing by his boss, Carl-Henric Svanberg, who had an uncomfortable moment himself when he voiced his concern about the oil spill victims by solemnly declaring, “We care about the small people.”
Showing a stiff upper lip, Hayward was seen two weeks later at a glitzy yacht race around England's Isle of Wight. His egalitarian-named yacht “Bob” finished fourth.
Hayward and Svanberg are certainly not alone when it comes to verbal gaffes or ill-considered public actions. However, in today's electronic world where seemingly every embarrassing moment immediately goes viral, company leaders simply must become more adept at guiding their organizations through situations where corporate reputations are at stake.
Hayward's PR debacle should serve as a teachable moment for all of us. Insurance people have an image problem even in normal times. Today, the challenges facing us are rife with potential for media missteps — a hurricane season that may end our charmed five disaster-free years, the continuing Chinese drywall saga, the overarching 24/7 spectacle of the oil spill. Couple those dangers with the general misconceptions of our role in all of them and our already poor public image, and the possibility for major mistakes becomes almost paralyzing. (For an overview of the insurance implications of the oil spill, see Lynne McChristian's article on page 16, where she breaks it all down for us. It can serve as a handy guide when talking with your clients or local media.)
Also of help may be a May 25, 2009, cover story in National Underwriter's P&C by Editor-in-Chief Sam Friedman, in which he discusses insurers and reputational risk management. “Insurers — in the rare times they do appear in TV, movies or novels — are almost always the bad guys,” he wrote. “Is this life imitating art, or just lazy, stereotypical writing? Is the best image this industry can hope for on the pop culture scene — a sourpuss caveman, a sassy gecko and an accident-prone duck? I believe there are steps the industry can and should take to reboot its image and convince people to give insurers the benefit of the doubt. To accomplish this, carriers must:
? Reject the notion that perception is reality, and that insurers will never be respected.
? Stop being so defensive when the industry does screw up.
? Be far more proactive and innovative in publicizing all the good the industry does. That includes encouraging positive insurance role models in pop culture.
? Enlist every employee, from the CEO down to clerical help, to defend and promote the industry.
? Market the vital services insurers provide, not just the price of policies.
? Diversify the work force — especially among senior management — so it better reflects society.”
I encourage you to read Sam's entire article, Insurers Can Polish Their Image While Boosting Bottom Line online in the archive section at www.property-casualty.com. One of the suggestions, to enlist every employee's help to defend and promote the industry, is especially well taken. However, without proper media training and guidance, it can backfire.
Timothy Hagler, a well site leader from Texas and 30-year BP veteran, helpfully told the Associated Press recently, “We're not going to destroy the planet. The planet has a way of taking care of itself. If it gets tired of humans, it will find a way to get rid of us all.”
Oh, my goodness.
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