Daily briefing: Tuesday - Making our voice heard

The riots that took place across the UK back in August will be remembered as one of the biggest events in the public eye in 2011. It will also be remembered as one of the busiest periods for the insurance industry – which, according to a government-backed report on the riots released yesterday, “failed miserably”.

Looking back at the events, which could in no way have been anticipated, the industry’s response from within was quick and in some cases military. The report does not recognise the majority of insurers’ reactions: for example, they set up 24-hour call centres to help deal with the sheer number of customer issues and complaints; though it notes the ABI’s public comments that the industry had “reacted well and quickly”.

But was this enough? Did the industry make its voice heard strongly enough during a time when reputations were hanging so finely in the balance? Insurers are understandably upset over the suggestions the report makes about its response to the riots, as many feel they could not have done much more given the nature and speed of the incidents that occurred.

The ABI put forward a strong response in defence of insurers to the panel in charge of compiling the report, but this seems to have fallen on deaf ears.

Despite much of the blame resting on insurers being too slow to pay claims, the report did recognise the difficulties that insurers faced with the process, for example; the circumstances of each claim were different and had to assessed on merit, which in turn makes it a lengthy process. And there were delays in reporting damage to the police.

But as these situations go unnoticed by the public, the perception of the industry dwindles and much of insurers’ communication with clients was described as misleading. This won’t be the end of the investigation into what happened during the riots and the industry now has its chance to respond.

But its perception has taken another battering and perhaps will prompt insurers and the wider industry to think about how to change this. What it seems to be crying out for is a public figurehead, someone who can stand up and speak out during events like the riot.

It doesn’t need someone to make excuses, but to inform and reassure policyholders of their position. It’s a challenge, but it needs to be overcome, urgently.