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Reputational risk product

Reputational risk is a pressing board-level concern and in a changing world, something that is increasing is importance to companies of all types. The Beazley solution is unique because in addition to providing ‘all-risks’ reputational coverage with indemnity for crisis consultants and business interruption, we combine that with giving a Policyholder access to cutting-edge data analysis technology that uses AI to assess open source reputational data.
George Beattie, Head of Incubation Underwriting, Beazley
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Through the use of AI and in collaboration with Polecat Intelligence, Beazley’s reputational risk product is able to help policyholders take more control of their corporate brand and reputation, thereby minimising this risk on the balance sheet.

Our product has been designed for B2C companies and works with crisis consultancy services to mitigate the risk. The product will pay loss and/or crisis costs arising from a notification which has been made to the insurer during the policy period, provided that:

(a) the act, incident or event described in such a notification gives rises to reputational harm

(b) the insured organization suffers a reduction in revenue

(c) it is established to the insurer’s satisfaction that there is a causal link between the reputational harm and said reduction in revenue

How is Beazley’s reputational risk product simpler for customers?

Beazley’s product is different because it offers:

  • An ‘all-risks’ approach with some exclusions: cyber, fraud/intentional criminal acts, corporate strategic decisions, systemic and macro-economic declines
  • A straight-forward, pre-agreed basis for calculating BI that avoids the expense of adjusters
  • On-demand reputational intelligence harnessing AI to analyze open-source data and provide real-time, accessible visualizations
  • Access to leading crisis response consultants, providing rapid support in a crisis
  • Indemnity for expenses incurred to rehabilitate the business and get the insured back on track

Key learnings when looking to simplify your products and services

Reputational risk is a challenging area, which highlights some key learning points around the importance of product simplicity and aiding customers comprehension:

  • Leading with services is helpful, because it minimises risks on the horizon and suppresses losses when crises occur
  • When offered a choice between speed or payment quantum, companies will generally choose speed of payment. Business interruption is a major point of frustration for insurance buyers and new approaches are needed
  • It is entirely feasible to pre-agree certain financial metrics in advance of a policy binding, to prevent the need to discover/agree those same metrics post-binding
  • Policy language should be assessed, to highlight potential differences in interpretation between the underwriting team and the buyer
  • Overengineering is a danger when trying to simplify downstream issues like business interruption

You can find out more about Beazley’s reputational risk product by visiting our website and by listening to our podcast.