Part 5. The future role of brands in insurance
“Prevention is better than cure” is a maxim that resonates well beyond healthcare. In insurance, it is supported by at least three arguments:
The financial loss will very rarely be fully covered by insurance. The policyholder will usually need to bear a deductible, or self insured retention, and if the loss is severe, it may exceed the limit of liability under the policy. It will also normally result in higher insurance premiums going forward. Making an insurance claim is, at best, an administrative hassle and at worse a massively time- consuming exercise for an individual and – still more in the event of a complex commercial claim – for a firm. The circumstances that generate an insurance claim – particularly a third party liability claim – may generate serious reputational costs that are not covered by insurance.
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For all of these reasons, insurance propositions that include well-designed risk management services are likely to support stronger brands than products that rely exclusively on the insurer cutting a check in the event of a loss. And when a loss occurs, the insurer can often incur more gratitude for well-designed incident response services that reduce stress and reputational risk. Above all, from a branding perspective, these services will multiply positive touchpoints to ensure that insurers are no longer “out of sight, out of mind.”
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