Publications

December 4, 2024

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Governance experts including the National Association of Corporate Directors and other authorities are encouraging boards to support management more closely in an "uncertain — and possibly volatile — environment," even at the risk of appearing to micromanage. But with engagement comes culpability for the reactions of already-angry stakeholders. Simply put, the costs of leaning into a reputation crisis may include the dispensation of board members whose personal losses will not be covered by D&O liability insurance. Board members need personal reputation insurance.

Governance experts including the National Association of Corporate Directors and other authorities are encouraging boards to support management more closely in an “uncertain — and possibly volatile — environment,” even at the risk of appearing to micromanage. But with engagement comes culpability for the reactions of already-angry stakeholders. Simply put, the costs of leaning into a reputation crisis may include the dispensation of board members whose personal losses will not be covered by D&O liability insurance. Board members need personal reputation insurance.

October 28, 2024

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An industry that is using parametric technology to insure losses from natural disasters caused by wrathful deities can now also provide meaningful insurance for losses from reputation disasters caused by emotional mortals. The 4-M parametric framework of metric, model, monitor and market for natural earthquakes disclosed at the 2023 Hawaii Captives Insurance Conference makes parametric insurance for metaphorical earthquakes easy to back, underwrite, broker and bind.

An industry that is using parametric technology to insure losses from natural disasters caused by wrathful deities can now also provide meaningful insurance for losses from reputation disasters caused by emotional mortals. The 4-M parametric framework of metric, model, monitor and market for natural earthquakes disclosed at the 2023 Hawaii Captives Insurance Conference makes parametric insurance for metaphorical earthquakes easy to back, underwrite, broker and bind.

October 1, 2024

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Investors are not good predictors of reputation value loss as seen in this graph comparing the equity performance of three companies with reputational crises. When normalized against respective peers, the over or under-reaction in the first few weeks is striking. At day 71, Crowdstrike, Boeing, and Southwest were, respectively, -20.8%, -28.1%, and -23% relative to the performance of the Nasdaq Cyber Index, FTSE|US Aerospace Index, and the Dow Jones US Airlines Index.

Investors are not good predictors of reputation value loss as seen in this graph comparing the equity performance of three companies with reputational crises. When normalized against respective peers, the over or under-reaction in the first few weeks is striking. At day 71, Crowdstrike, Boeing, and Southwest were, respectively, -20.8%, -28.1%, and -23% relative to the performance of the Nasdaq Cyber Index, FTSE|US Aerospace Index, and the Dow Jones US Airlines Index.

April 6, 2024

The reputation premium-seeking RepuSPX is out-performing the S&P500 Index by 397.14; basically, arbitraging reputation value and stock price. All of Steel City Re’s quantitative risk management and insurance solutions are informed by the metrics of these indices. Is the quality of your risk management authenticated by reputation insurance?

April 1, 2024

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Bud Light reputation crisis at one year. $1.4bn estimated loss in sales. Equity lagging S&P Food and Beverage Index (IFB) by 12% (~$14bn); and Molson Coors (TAP) by ~40%.

With reputation risk forecasting, management, and insurance, Steel City Re helps companies build and prove to stakeholders their thoughtful risk management and dutiful governance over all that is mission-critical. It is an authenticated story stakeholders can appreciate and value.

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