Ethics and Branding

​A year ago, I spoke at a limited membership insurance conference. The organizer introduced me as the best consultant, but the worst consultant ever at branding themselves. Maybe because I’ve lived in cattle country most of my life, I’m a little hesitant about the thought of branding myself.

But he was 100% correct that I’ve done a horrible job creating a big brand. I find it frustrating that people with a much better brand get a lot of work because of their brand. However, sometimes the quality of their work is not only marginal but downright unethical.

A few months ago, a client gave me an idea for a brand. He said I’d carved a unique position for myself as pretty much the only consultant in the industry without conflicts of interest, especially conflicts that come from being a business broker and owning agencies that may or may not be disclosed to agency and carrier clients. I like that! But I still haven’t figured out how to turn that idea into a snazzy brand.

Then, a couple of weeks ago, a major national news outlet interviewed me in depth regarding how certain types of insurance companies are being created in a manner that enriches founders but leaves little true surplus available to pay claims, especially after a catastrophe. The reporter had read a lot of my articles critical of insurance company practices, especially those that unjustly enrich founders while leaving policyholders short in a catastrophe. He asked me how in the world I survive consulting for an industry for which I am critical.

I told him my success was due to only working with ethical people. I told him this industry is full of people at the company and distribution levels who really want to do the right thing. They want to take care of people, and to do so, they want to provide products that will help people recover after what might be the worst day of their lives.

Insurance has always had more than its share of unethical players. Today, the industry seems to have extra unethical parties, especially in the alternative risk transfer space, including self-funding benefits and creative new carrier/distribution models.

I am a huge fan of alternative risk transfer and many of the new carriers’ capital structures. However, the lack of competent regulation and the complexity of these structures make it easy for unethical parties to mimic ethical players’ structures. The devil is always in the details.

All ethical markets and agents have the same struggle in branding their honesty. People don’t generally trust insurance, which is why comical characters sell more new personal insurance than “trust me” brands. It is very difficult to create proof-of-trust measures until after someone has had a trust-testing experience.

What do you do to prove you are truly competent, trustworthy, and ethical? How do you brand this beyond token website adages? How do you prove your competitor, who you know is cheating but uses clever marketing, is not ethical? Are you direct, or do you try to show a prospect how you’re better and hope they see the light? There’s an entire economic theory built around the idea that the less ethical will win unless a boutique brand is created. What is your boutique brand?

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None of the materials in this article should be construed as offering legal advice, and the specific advice of legal counsel is recommended before acting on any matter discussed in this article. Regulated individuals/entities should also ensure that they comply with all applicable laws, rules, and regulations.