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-- Communication, a tool for risk management

Our Accounts Director, Cristina García Alonso, has published an article in SegurosNews on how a communication policy is a fundamental tool for companies to manage risk and reputation.

Have you ever heard about an appointment in your company through the media before it is made official?Has any information about it been published with erroneous data? Even if it hasn't happened to you, these situations happen with some frequency, and especially more so since social networks have become the medium through which many people access information and sometimes as a source for the mainstream media.

For anyone wondering why this happens, the answer is usually relatively simple. Either the company has not followed the advice of its communication director or consultant - or the company has not followed the advice of its communication director or consultant - or the company has not followed the advice of its communication director or consultant. situation quite often - or the company simply does not have a communications policy. The latter is a perfectly respectable decision, as each organisation has its own strategy, but the practitioner must also know that entails certain risks.

It is precisely one of the fundamental tasks of insurance companies to anticipate risks in order to try to prevent them before having to mitigate them. Well, communication is a key tool for addressing and managing risks. reputational. And even more so in a sector such as the insurance industry, where it is rare to find a person or company that is not a customer and where there are many prejudices and preconceived ideas in society.

It can be said that communication is a fundamental tool to fight against this problem. view that insurance is never there when it is neededto show society that claims are dealt with, that products are created for new needs, that a lot of solidarity work is done, that thousands of people are employed in much better conditions than in any other sector or that there are great opportunities to develop professional careers... It is a reality that practically only those who enter this world know about, but that needs to be transmitted to the outside world.

And that is no easy task. It is necessary to work on internal and external communication in order to strengthen the company's internal relations and those with customers, suppliers, suppliers, etc. or potential clientsThe first serves to create healthy relationships within the company itself and facilitates employee motivation and commitment, as well as creativity and innovation, which ultimately leads to profitability and the achievement of business objectives. Ultimately, the aim of this communication is to create transparency and trust in working relationships, but also to raise awareness among employees so that they are
aware that their activity on their personal social networks may clash with their company's communication strategy (when you post information on your social networks that affects your company beyond the personal). In this type of communication it is essential that the Communication department works in coordination with the Resources department. Humanswho, at the end of the day, manages the staff.

It is always a good idea for the two of you to work out a clear protocol for action to be followedFor example, when promotions or additions to the company take place, in such a way as to avoid the affected parties themselves being the first to announce it on their social networks, something, as I said above, that occurs more frequently than is desirable.

Both departments should also find out how best to ensure that company communications reach all employees and, importantly, are read by them. It is of little use to send weekly newsletters that are intermingled with dozens of external newsletters that arrive in the staff's inboxes and go straight to the waste bin. The same is true if you communicate only through social media to a workforce where a high percentage of the workforce does not use social media.

With regard to the external communicationeven more important is the have a sound strategyThe fundamental objective is to showcase the activity and values of the organisation to your current and potential customers and suppliers. And it must be done with clear and concrete messages about your activity and its purpose. It is not so much a matter of communicating to weight as of transmitting what is important, but whether there is little or a lot of information generated, it must be framed in a strategy to achieve its purpose and have a positive impact on the business. Getting professional help to design it is the most effective option.

And in the insurance sector, to do so effectively, companies need to communicate their business in areas that are fundamental to society and business. EIOPA, the European Insurance and Occupational Pensions Authority, recently established among its strategic priorities for the next three years issues such as sustainability, digital transformation and model internal governance. These are no different from what insurance companies and intermediaries are currently concerned about, and what society and institutions are demanding.

That is why they must value what they do in relation to these issues. New generations, according to different studies, increasingly value everything related to ESG (environment, social and governance) and the digital world is their key communication tool. This means that communication must be adapted to the new channels of its younger audiences, but without neglecting the more traditional channels of its veteran customers.The latter, on the other hand, tend to have greater purchasing power and more assets to insure.

In short, a good communication strategy generates a spiral of benefitsThis, in turn, will make it attractive to the best talent, who will put their skills at the service and profitability of the company. All of this, as well as allowing us to be prepared and being a fundamental tool for managing reputational risks.

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