Allianz Global Corporate & Specialty (AGCS) has launched Reputation Protect Plus in the UK to help companies protect their reputations – their most valuable assets – in times of crisis.
Providing “tangible assistance to an intangible risk,” AGCS said its Reputation Protect Plus offers comprehensive crisis management services to ensure that an organization’s response to a crisis is professional and timely. In addition, the product also offers compensation for the loss of profit if revenues are affected by the crisis.
Under the Allianz Reputation Protect Plus product, AGCS first provides the customer with an in-depth analysis of its specific reputation risk from MediaTenor International AG, a global leader in strategic media analysis.
Companies can also select an international crisis communications agency from its partner network, which include Brunswick, Kekst CNC and Hill+Knowlton, to help clients “react quickly and professionally in the event of a crisis,” said AGCS.
AGCS will cover the costs of communication consulting as well as reputation monitoring service provided by MediaTenor International and for the implementation of the crisis response measures recommended by the communications agency commissioned.
Such measures include the establishment and operation of call centers, cross-border advertising campaigns or the commissioning of market research institutions, AGCS explained. Finally, after the crisis, important results of the specific case will be analyzed together with the communications consultants and made available in the form of a final report.
“This is important in order to learn lessons from the incident and from the mistakes made,” said Matthias Vollbracht of Media Tenor International.
Given all the potential causes for a reputation-affecting event, an organization’s reputation is constantly vulnerable, said AGCS. “Nevertheless, many companies are still inadequately protected against the consequences of a reputational crisis. This is all the more alarming because the triggers for reputation risks have multiplied in the social media age,” explained Stefania Davi-Greer, Regional Unit London head of Financial Lines, AGCS.
“With the new Allianz Reputation Protect Plus product, AGCS offers a comprehensive insurance solution that combines the support of professional crisis communication consultants with the coverage of financial damage resulting from a reputation crisis,” said Davi-Greer.
“In the era of social media and fake news, perception is reality and reputations can be destroyed in hours with an immediate knock-on effect on a company’s bottom line. A crisis can also lead to aggressive competitors seeking to capitalize on your troubles,” said Susan Crabtree, regional head of Product Development Financial Lines at AGCS. “Our customers can take reassurance from the fact that for the first time, monetary losses are also included in a reputation product at AGCS.”
“As the first broker to offer the Reputation Protect Plus product, we worked closely with the Allianz team developing exclusive wording to ensure our clients are sufficiently protected in the event of a reputational crisis” said Edel Ryan, partner and head of Media & Entertainment at JLT Specialty. “Our bespoke wording will help to mitigate risks companies face in an environment where reputational issues have a habit of escalating rapidly, fueled by social media and 24-hour news.”
AGSC explained why reputational risks are growing in importance:
- Almost a quarter of a company’s value (24 percent) is estimated to lie in its brand, said AGSC, quoting the “Brand Finance Global 500 Report,” published in March 2012. Studies also suggest that a company can lose close to 30 percent of its equity value in the year following a reputational crisis, added AGSC, citing statistics from the report titled “2018 Reputation Risk in the Cyber Age,” published in 2018 by Aon.
- Reputational crises are among the 10 largest corporate risks, said the Allianz Risk Barometer 2019. More than any other threat, reputation risk is interconnected with other business risks. A negative compliance event, for example, can turn into a reputation risk. The same goes for other risks, such as cyber attacks, financial issues and risks around company culture and behavior, AGCS said.
- No business is too small to be unaffected and reputation can be under-protected but insurance can provide funding for, and access to, crisis management experts.
Source: Allianz Global Corporate & Specialty
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