Making friends in high places

The insurance industry seems, at long last, to be growing up in its relationship with government and the political system.

For far too long, the industry has relied on the trade associations - particularly the Association of British Insurers - to define its relationship with government. The ABI has got much better at the job in recent years, but narrow, interest-based lobbying is still as far it goes.

It can articulate the industry's views over immediate threats and link well into the political process. That's fine - up to a point. But lobbying only when you want - or, more often, don't want - something to happen is a less than complete relationship with government.

This is not meant as a criticism of the trade associations - that is, after all, what they are for. What has been missing is a broader vision of insurance's relationship with government - mainly because major insurers have stubbornly refused to see that they have a responsibility to the community and should be engaging in debate on a wide range of issues.

This is what is now changing.

Several major insurers are now committing significant resources to what is broadly termed 'public affairs'. I know many will say this is not significantly new - but, having observed this interface for several years, I would beg to differ.

For example, Norwich Union has linked up with the Smith Institute to promote a new series of seminars on communities, social exclusion and crime.

So what, you might say. Well, these are taking place in Downing Street - and the first of the series was addressed by the Chancellor and attended by the Lord Chief Justice. How many times does an insurer get praised in such exalted company?

The potential benefits to NU are long-term, and perhaps not immediately obvious. Of course, reducing crime will save insurers money - but issues of access to justice and the compensation culture also need to be aired in any debate about social exclusion.

By being involved in such debates, NU is ensuring that the industry has a voice in policymaking when it is at its most formative stages.