Read-in

A gathering in late October of people in the communications field in Santa Barbara, Calif. during the Insurance Information Network of California’s annual planning meeting highlighted what may be considered one of the biggest hurdles not only in the field, but possibly throughout the industry.

Trying to communicate to the general public the need for disaster preparedness, and for consumers (individuals and businesses) to read and know their insurance policies was the main theme of the meeting between a dozen top communicators for large insurance firms and groups.

A guest speaker at the group’s meeting was Santa Barbara County First District Supervisor Salud Carbajal. The supervisor discussed the public’s perception of the insurance industry and his own frustrations in getting his constituents to understand the dangers of fires and other hazards, such as the Jesusita Fire in 2009, which destroyed 80 homes causing an estimated $17 million in damages. The fire was one of four major fires in two years, including the Montecito Tea Fire in November of 2008 that destroyed 210 homes.

While the fires are recent history, Carbajal feels that efforts to improve public safety continue to be met with a lack of understanding, or in some cases outright political opposition. Communicating the need for such plans to people and businesses puts politicians like him on the same playing field as those who work in the insurance industry, he said.

Following disasters, people are often quick to assign blame, and in such cases some may view the insurance industry as the bad guys, Carbajal said. “But I understand that you are not,” he said, adding a call for more concerted, and creative, communications efforts to get people to understand these dangers and what risks they are and are not covered for in their policies.

At that point, Insurance Information Network spokesman Pete Moraga suggested that carriers hold a massive “read in” in communities, during which policyholders can learn to read their policies.

“Our major challenge after every disaster is that homeowners don’t always understand their policies and many of them have never read them until it’s too late,” Moraga said. “We know it’s not the sexiest reading.”