On 7 January, the world was shocked by the horror and devastation of the LA wildfires, which destroyed homes, businesses, and large neighbourhoods in California.
The aftermath of this disastrous event displaced many people from their homes, caused untold damage, and resulted in the tragic loss of 29 lives. It is now also one of the largest catastrophes to hit the US, with Moody’s RMS estimating insured losses could reach or exceed $30bn.
However, insurers have been criticised in many media outlets, with very few counter-statements or explanations coming from the industry.
Speaking to The LA Times earlier last week, Chubb estimated that it would need to pay out $1.5 billion to cover its Los Angeles County fire claims. The accompanying statement from CEO Evan Greenberg was excellent, but it was one of very few made by industry spokespeople, despite the high-profile global nature of the event and its intrinsic link to insurance.
Ben Bolton, MD at Gracechurch, commented:
“The insurance industry is often held up as not being trusted by the public, but it’s often its own worst enemy by failing to show up in the media when catastrophes or significant events occur. These are the moments when the industry can and must show itself at its best – paying claims and supporting customers.”
Bolton added: “Insurers are investing more in their brands, but unless they communicate better, this money will fall on stony ground because the dim view of the industry won’t change. Insurers must learn from the banks, investment companies, tax advisers, and other industries that have to deal with challenging messages by appointing more professional and media-friendly spokespeople.”