Reputation; liberty, equality, fraternity

26/11/2011 12:19 pm

Reputation Consultancy has been in Paris this week at the invitation of ROAM (Reunion des organisms d'assurance Mutuelle) attending the annual meeting of leaders from the French mutual sector, a group holding 40% of the country's insurance market.

Globally, 26% of the world's insurance market is mutual, owned by members, run for members, it is a powerful statistic.
At this gathering, as at any meeting of mutual and co-operative organisations, there is a shared, almost palpable, sense of pride, openness and value - even before the presentations begin.

The opening echoes the position of mutual insurance across the world; a pillar of insurance and a partner to capitalism.

Dominating the agenda is sustainability, how the sector can best prepare for long term success both in overcoming the burden of regulation and legislation and of the mutual model itself.

Presentations cover business efficiency and mutual values and include topics such as the European Mutual Statute, the value of the French social economy and the role of mutuals in the 21st century.

We can't help but feel that this is the time for mutuals, our society and economy needs something different, an alternative answer. So why do we sit here finding ourselves, not excited about the future potential but feeling a sense of 'threat' and 'self protection'?

The mutual sector believes sustainability will come from its ability to gain access to capital or to affect regulation. The opportunity is so much more broad.
In our opinion, the answer is this.

Continued success of the mutual sector is dependent on its ability to command strength of reputation among stakeholders, at a national and global level; something it is already well placed to do.

These member-owned organisations excel in so many reputation components. In stewardship, they exist to serve the next generation of members, in belonging their very foundations are rooted in society, they innovate from social need, not from greed, they deliver products and services that are designed specifically to meet members' needs. Even in performance against the backdrop of recession, they stand strong.

So why are they struggling with 'threat' and 'self protection'?  The answer is because they are not utilising the assets of their reputation.

• On brand the term 'mutual' is confused. Articulated differently by numerous brands of mutual insurer both nationally and globally, the brand is further weakened by a number of varying legal constitutions that comprise one mutual sector.
• On understanding, a key quality of reputation, there is complexity and confusion around what mutual means; ironic given the consensus and strength of the shared values lying beneath.
• A alignment between internal and external stakeholders is clear. In one presentation by a significant external stakeholder we heard the sector referred to as 'complex, vital and historical' .  The same presentations from mutual insurers themselves are peppered with terms such as 'service, duty and value'.

If the mutual sector was to stop and really listen carefully, to understand the sentiment towards them, the reasons for the attitudes and behaviours they are experiencing, then they would see how drawing equally and freely on all the assets of reputation that they already hold, would go a long way towards the sustained success of the model.

Bringing in the 'outside-in' view is as important (although not as comfortable) for sustainability as looking from the 'inside out'.
This proud, powerful sector understands very clearly the role it has to play in both society and the economy, if only it would give itself permission to listen, it could understand where its unique values can best serve to enhance its reputation.

"We need to speak with one voice," says one speaker, " why do we blush about our model?"Sustainability of the mutual model, lies in the sector's own ability to listen, understand, interpret and respond to the answer to that question and to face the reality of its reputation.