15 Feb Reputation Insurance: A Remedy for Fake News
We have all now heard the term fake news: an opinion presented as if it were fact. The rise of fake news is driven by both the high demand for content to fill the 24-hour news cycle on hundreds of cable channels and the supply of content from anyone with an opinion they can present in a blog or video on social media without regard for journalistic standards that require independently verifying relevant facts.
The life insurance industry is riddled with fake reviews and policy audits that are presented as a factual analysis of economic policies. The prevalence of fake reviews is driven by the many agents, brokers, and companies producing policy reviews in response to the desperate need for information to support management decisions.
Fake reviews can be appealing to clients seeking confirmation of their own biases regarding a particular agent, broker or company. They can be useful to those wanting to sell a particular or limited number of products. This affects decision-making, and life insurance has been among the worst-performing asset relative to clients’ expectations for decades.
Outside of the insurance world, fake news also has the ability to severely damage the reputation of organizations. The cost of a reputation loss today is approximately five times higher than it was in 2011. There is a new breed of insurance policy known as reputation insurance that has been developed to combat these losses.
The principal of reputation insurance is to make sure the operational and communications parts of a company work together to ensure promises don’t outpace fulfillments.The mitigation strategy comes from generating positive stories in case negative ones come out in the future.
These policies transfer the risk of paying for reputation services, such as business consultancy, PP or digital communications to prepare for a crisis or respond to its immediate impact. Here at AWS, there is nothing fake about us. We have an experienced staff waiting to help you find the best reputation insurance policy for you.