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Building Community, Crafting a Message

Mutual insurers should stress community, governance: A.M. Best panel.

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Mutual insurers have an edge when it comes to good governance, financial security and community-building–but should make those attributes part of their branding, especially in the wake of the economic crisis, according to panelists at a recent seminar.

Since mutuals are defined by their local, customer-driven focus, they should make the most of it in wider branding efforts–making the public more familiar with their approach to business and attention to service through all communications, including websites and other materials, said Charles [Chuck] Chamness, president and CEO of the National Association of Mutual Insurance Companies (NAMIC), at the September 7 web seminar hosted by A.M. Best.

Though not a panelist, Normand LaFrenière, president of the Canadian Association of Mutual Insurance Companies (CAMIC) agrees that better branding is essential, and  pointed to a home-grown model of collective branding and community engagement: insurance brokers.

“It’s hard to be perceived as one group,” LaFrenière says, noting brokers’ “successful” efforts on that front, and acknowledging that they and mutuals share  similar community ties and can learn from each other’s community-minded efforts.

“What we have is a higher level of service” he told Canadian Insurance Top Broker September 14. “We [mutuals] don’t publicize that enough. We don’t publicize governance enough.”

Strong ratings, presence

Whether through a website, a logo or a brochure, capitalizing on mutual strengths is crucial, the panellsts stressed, noting that mutuals have a good record on both sides of the business:  most have strong financial strength ratings, and “have been able to hold their own in terms of business position and presence in the market,” said Vatsilis Katsipis, general manager of analytics at A.M. Best.

Highlighting those attributes alongside more personal and community-minded attributes will help build a group brand, the panelists noted. Chamness pointed to recent findings from a J.D. Power U.S. customer satisfaction survey that saw many mutual insurers among the top rated.

“Of the 12 highest scoring companies, 11 are mutuals,” he said. “It shows a great alliance.”

In the U.K., insurers are already moving toward marketing mutuality. A recent International Cooperative and Mutual Insurance Federation (ICMIF) survey showed that almost a third–32%–used their mutuality status in marketing at present, and more plan to do so in the future. “We’re moving in the the right direction,” said Shaun Tarbuck, CEO of the ICMIF.

Here, insurers are lagging somewhat on that front, say both LaFrenière and Chamners.

Building new communities

The Internet and online communities offers a particular opportunity for mutuals to capitalize on their real-world community strengths–allowing them to stay close to members and extended community with new communication tools.  They’re also an opportunity to enlarge their exisiting community, according to the panel.

“Mutuals are well positioned to give people another community, and insure each other,” noted Chamness. “The applications [to do so] are still emerging.”

They will also help mutuals challenge other messaging, added Gregor Pozniak, secretary general of the Association of Mutual Insurers and Cooperatives (AMICE.) “Our challenge is to surpass the message of  ’I care’ from other companies.”

In Canada, that first step has already begun. CAMIC members have begun their own collective branding efforts–examining the possibility of a group logo that reflects their common vision, reports LaFrenière.

A common logo “is on the way,” he says.