“A brand is a living entity - and it is enriched or undermined cumulatively over time, the product of a thousand small gestures.” So said Disney CEO Michael Eisner talking about the importance of reputation.
Judging from a recent survey of insurance buyers and brokers, Lloyd’s brand continues to be enriched at a time when other financial institutions have seen theirs devalued.
Increasing awareness of Lloyd's brand
The survey, which involved over 500 brokers, insureds and reinsureds around the world, also revealed an increasing awareness of the Lloyd’s brand name across the globe.
Importantly, during a period of economic downturn and uncertainty in the global financial markets, Lloyd’s core attributes have remained stable among customers and other stakeholders. Between 2007 and 2009, while the financial crisis raged, the survey showed that favourability towards the Lloyd’s market actually increased.
The survey, carried out in October and November last year, showed that Lloyd’s “key differentiators” from other big global insurers are that it is viewed as being traditional, entrepreneurial and dependable – and with excellent financial security.
A leading authority on emerging risk
Reassuringly for Lloyd’s, the survey indicated that Lloyd’s is seen as being the world’s leading insurance market and also as a leading authority on emerging risk.
When compared with its peers in global reinsurance, Lloyd’s is characterised as innovative and progressive. In addition to rating Lloyd’s higher overall for favourability, reinsurance respondents were more likely to state that Lloyd’s has improved in the key areas that drive favourability: willingness to negotiate; risk appetite and ease of access.
Lloyd’s reputation has weathered the financial crisis well. Asked to rate Lloyd’s in terms of its stability on a scale of one to 10, respondents gave the market an average score of 8.1 compared to 7.1 for the wider insurance market and 5.9 for all financial institutions.
Lloyd's has weathered financial crisis
It was a similar story on openness and transparency where Lloyd’s scored 7.0 out of 10, against 6.5 for the insurance industry and 5.7 for financial institutions.
There is still room for improvement and survey respondents identified some attributes they would like to see Lloyd’s insurers improve on. US buyers named breadth of cover as a top priority while insureds in some markets suggested willingness to negotiate and broader risk appetite as key areas to work on.
But the survey shows that Lloyd’s has improved in most areas, however, with greater choice over the last two years and better leadership and management over the same period for example.
Lloyd's key expertise recognised
Lloyd’s CEO Richard Ward said that the positive feedback provided by the survey from insureds and brokers around the world was an endorsement of the Lloyd’s franchise.
“We’re pleased with the survey findings,” he said. “It shows that Lloyd’s key attributes of financial strength and risk transfer expertise have gained currency in what has been a difficult and uncertain time for businesses everywhere.
“The insurance industry and its customers face some big challenges as the world comes out of recession. But we believe – and importantly our stakeholders believe it too - that Lloyd’s is equipped to help tackle those challenges.”
