Reputation risk in a social media culture: How well is the insurance market responding?

With the advent of social media and global connectivity, incidents that have the potential to cause damage to a company’s reputation have increased almost beyond comprehension. Organisational behaviour and corporate social responsibility are under scrutiny by a technology savvy customer who has various mediums through which to expose a company to reputational damage – in some instances, by just a single ‘tweet’.

So how has the insurance industry responded? The insurance industry is quick to promote the idea that ‘anything can be insured’. From celebrity legs to footballer’s feet, the insurance industry can usually offer a solution in return for a premium. However, whilst a small number of insurers have adapted to the idea of covering brand and reputational damage, the difficulty remains in defining and quantifying the exposure.

This whitepaper considers:
• The need for brand and reputational risk cover.
• The barriers to insurer participation.
• The level of coverage currently available.
• How the insurance industry should respond.