Online communities may hold the key to rebuilding public trust

The insurance industry has had a turbulent few years. The fall in the stock market and the knock-on effect this has had on endowment policies has left a bitter taste in many consumers mouth.

To add to these woes, insurance companies are perceived by many consumers to provide a bad service. It is a perception that is based increasingly on the frustrating experience consumers have in dealing with call centres.

There can be no question that the insurance sector has to rebuild its image and regain the trust of its customers. The answer, however, does not lie in more generic, push-based marketing but in developing an online community that engenders trust and, ultimately, ensures that customers receive only information and advice that is directly applicable to their needs. In other words, it needs to be goodbye to junk mail.

In simple terms, an online community is a collection of like-minded individuals who have freely consented to form a group that they access online. Typically, a group tends to form around a special interest, a geographic connection, or a professional or market specialism.

The size and scope of each community is determined by its members and it can adapt to the changing needs of its members. Above all an online community is an inclusive forum that utilises web technology to share information, provide appropriate services and develop a rapport between individuals.

In many ways, an online community takes the notion of customer relationship management one step further by placing control back in the hands of the customer.

With new legislation coming into force in December 2003 that will make it obligatory for companies to obtain customer consent prior to any form of electronic communication, an online community provides a framework within which the customer not only provides their consent, but also actively engages in an ongoing relationship that is shaped to reflect their specific interests.

Insurance companies may look upon this with some scepticism, but online communities have been adopted by other sectors with phenomenal success. AccountingWeb is one such example of a successful community. Created in 1997, AccountingWeb now boasts 87,000 subscribers.

The success of the site is a combination of the services that have been developed as well as the community spirit that has evolved. The community spirit has evolved over the past 7 years to the point where the hierarchy within the accountancy community has been stripped away, allowing subscribers to communicate with very senior people in a way that is unheard off in the accountancy profession. This is the result of a gradual build up of trust in AccountingWeb and the wider notion of an online community.

For the insurance sector, online communities offer an opportunity to regain the trust of customers and prospects through an online service that seeks their participation, is tailored to their requirements, secures their consent and ultimately wins their trust.

Some may argue that online communities represent a bold step for the insurance sector. With over 11 million UK households online, the insurance sector cannot ignore the potential of an active engagement with this `community'.

Gaining the trust and confidence of this vast and diverse number of customers by investing in an online community portal - which, crucially, gives them chance to make their voices heard - can only be a step in the right direction.

Ben Heald, managing director, Sift Group