BulletProofBlog the blog on crisis communications

Ask you average American what reinsurance is and the response will likely amount to little more than a blank stare. It' s an industry that has flown below the radar for years - quietly going about its business without ever really having to deal with intense media scrutiny, government intervention, or an angry constituency. And that' s just the way they liked it.

With a very public postmortem of the financial crisis lurking on the horizon, however, that may change sooner rather than later. For the first time in history, regulators, lawmakers, and consumers are coming to the conclusion that an entire network of companies meant to bolster insurers around the world may be experiencing its own financial and solvency woes, even if indirectly.

Why? Because catastrophes are occurring on a more massive scale than ever before, and doing so at the very moment a financial meltdown has decimated the investments reinsurers depend upon to create capital to pay for disasters such as 9/11, Hurricane Katrina, and a host of others.

Now, the crisis mindset - which represents something of a black swan to the industry - will likely soon become an integral part of every reinsurer' s DNA. In a world where crisis moves at the speed of light, failing to effectively respond to even the most seemingly innocuous event could trigger a disastrous chain reaction: A blogger writes a critical piece about a reinsurer; the traditional media pick up on the story; regulators and lawmakers begin to worry about the stability of the company; stock plunges and business dries up because even long-time customers become leery.

With so much at stake, prudent reinsurers can' t afford to proceed as if the scenario above might eventually play out. They must plan as if it is an eventuality. That means anticipating likely reputational exposures; tracking the internet now for intelligence and warning signs; optimizing online efforts to ensure their crisis response will be found by journalists and bloggers; and planning now for web communications that a crisis would require (e.g., "dark" web pages). It means identifying the high-authority bloggers that report on the industry so their coverage can be shaped before it influences traditional commentary. And it means having the courage to articulate solutions in the form of action should the government come knocking.

As we' ve learned time and again in recent months, it doesn' t take long for crisis to move entire industries from the periphery of public discourse to center stage. In today' s digitally-dominated and hyper-connected world, the only way to ensure business as usual is to prepare.

Richard S. Levick, Esq. is President and CEO of Levick Strategic Communications, the nation's top crisis communications firm, and a contributing author to Bulletproof Blog.