“A look in Lombard’s crystal ball reveals three possible outcomes of turning a deaf ear to reputation risk: first, customers will ask what’s the point of insurance if it doesn’t pay out at the time of greatest need. Many will self-insure. Second, politicians will threaten to force insurers to pay up. Already US state legislators and lawyers have threatened to force the payment of virus-related claims. Third, businesses in extremis will band together to launch class actions. ”Financial Times
April 14, 2020
“The harsh lesson that the insurers may learn … is that Covid-19 could infect the industry for decades.”
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Reputation risk is the peril of economic damage from the behaviors of angry disappointed stakeholders.
Risk governance and management, risk financing, and risk transfer through insurances comprise the constituent elements of a comprehensive enterprise reputation risk management solution.
What’s your strategy?