A broad insurance cover which will protect a firm’s reputation has been launched in response to the “volatile and dangerous reputational environment” that firms across the globe now face.
The rise in the influence of social media has prompted broker Willis Towers Watson, and Liberty Specialty Markets, to launch their Reputational Crisis Insurance solution that enables organisations to transfer the financial risk associated with certain types of reputational crises in addition to providing access to a range of non-insurance capabilities, including AI-powered data analysis.
Garret Gaughan, Head of Global Markets P&C Hub, Willis Towers Watson, said:
“The nature of public trust in authority, whether private or state sector, has changed radically in the last five years. The balance of power in the context of influencing public perception has shifted from the boardroom and into the hands of the smartphone generation.”
“Organisations find themselves in a volatile and dangerous reputational environment with significant and abstract forces to contend with. Willis Towers Watson is pleased to be at the forefront of moving the conversation away from the drawing board and towards the delivery of a tangible fiduciary support mechanism for clients.”
WTW said the Reputational Crisis Insurance had been developed through an exclusive partnership between the broker and Liberty Specialty Markets. Live, client-controlled reputational data and intelligence analysis is provided by market leader, Polecat Intelligence Limited. The solution will be available globally and is initially available to clients in the leisure & hospitality, manufacturing, retail and transportation sectors.
Lewis Edwards, Head of Underwriting, Specialty Binders at Liberty Specialty Markets, added:
“Clients’ increasing exposure to both traditional media and social media has led to a rise in reputational losses globally. Most Reputational products in the market currently only respond to the crisis communication fees incurred following a reputational crisis event.”
“This new product is one of the few that provides coverage for the loss of an organisation’s gross profit following such an event, providing financial protection and also giving clients the tools they need to protect their reputation. The ability to act quickly and transparently can have a hugely positive impact on a crisis outcome.”
Adam Garrard, Head of Corporate Risk and Broking at Willis Towers Watson explained: “While the world contends with the outbreak of Covid-19, the importance of maintaining momentum in innovation remains clear. Emerging threats continue to arise, and companies need the option of modernised risk transfer and mitigation solutions in response.
“In Reputational Crisis Insurance, we are delighted to offer our clients a risk management solution combining AI-powered data analytics, consultancy and insurance risk transfer in one place. For organisations of all types in a changing world, the holistic management of emerging risks like fake news, social engineering and perception manipulation will be critical to maintaining value.”