United we are perceived, divided we fall

There was a tetchy exchange between John McFall and an insurance industry audience at the recent Question Time, hosted by Professional Broking's sister title Post Magazine. The gist of the argument from the floor, led by Mike Eve, formerly of Aon and now of Aquilo, was that the general insurance market has nothing to do with the life and retail financial services sector that McFall's committee is so fond of berating, a view that was vigorously applauded by most of the audience.

Despite being outnumbered 200 to one, McFall fought back, arguing that the public - your customers - did not make that distinction and neither did the policy-makers. He pointed to the gentleman sitting next to him, Peter Hubbard of Axa, drawing attention to the fact that Axa uses a single brand to market both sets of products. Hubbard chose to diplomatically duck this point when the chairman, Radio 4's Paul Lewis, put it directly to him. McFall might just as easily have pointed to the next person along on the platform, David Strachan from the Financial Services Authority, and drawn attention to the common regulator for the entire industry.

It was clear that nobody else was going to be convinced, so the chairman moved on to the final question of the night, asked by FM Green's Ian Ritchens.

The question posed was: what one Christmas present 'for the industry' would the speakers like from the Chancellor? Ritchens chose to answer his own question by saying he would like the Chancellor to put back the money he stole from pension schemes. This was loudly applauded by the same audience that a few seconds earlier had been battling hard to claim the industry - of which they are a part - was a million miles removed from the life and pensions sector.

It almost certainly did occur to anyone who applauded Ritchens that they had just proved McFall right but - right or wrong - it does not really matter. It is all about how others see us. MPs clearly see the insurance industry as one, without distinction. The public see the insurance industry as one, without distinction. So, if the GI market wants a better image it has to acknowledge the need to join forces with the life and retail financial services market and collectively address the weaknesses that have left the industry - as a whole - with such a tarnished image.