Wall Street and Insurance Industry

The recent “Occupy Wall Street” movement highlighted the public’s discontent with giant financial institutions and the country’s growing income inequity between the rich and the poor.

The protesters have argued how these “too big to fail” financial corporations had pushed the country into a crippling crisis in 2008. They claim these institutions continue to help enrich the few at the top of the economic ladder at the expense of the 99 percent of the population.

The movement has gotten plenty of attention alright. Many approve of the protesters’ intentions, though there have been a lot of naysayers as well. Critics described the protest movement as hodgepodge encampments without clear goals that disrupted daily lives and businesses of surrounding neighborhoods. (There have even been questions of whether a drop in sales at nearby stores can be covered by insurance.)

And with more city governments and police departments now taking a tougher stance on these protesters, it’s becoming increasingly more challenging for them to keep the movement going and get their message out.

But if you are concerned about whether the insurance industry’s reputation is also tarnished because of Wall Street’s misdeeds, maybe you don’t have to worry. Many people may indeed be fed up with Wall Street. But they still appreciate the dedication and the hard work of Main Street insurance professionals, according to a new study.

The Hanover Insurance Group’s survey released in November says small business owners continue to trust independent insurance agents and commercial insurance carriers significantly more than other financial services companies. The survey asked over 500 small business owners with less than 30 employees. (Here’s a sample of the survey results: respondents trust insurance agents 48 percent more compared to their trust level with banks, 97 percent more than healthcare companies and a whopping 295 percent more than stock brokers.)

The finding that independent agents and carriers are perceived as having a higher level of trust is important, the Worcester, Mass.-based insurer said. It’s especially heartening because the finding comes at a time when trust and confidence in the financial services industry are at an all-time low, as the economy continues to feel the sting of the 2008 financial crisis.

The Hanover survey also said that for small business owners, trust is the single most important consideration when choosing an insurance provider, with nearly nine out of 10 small business owners rating trust “very important.”

“In a time of considerable economic uncertainty, small business owners want to know they are working with an agent and a carrier they can count on. This study confirms that it’s critical for companies to establish and maintain trust and confidence of those they serve,” according to the insurer. When it comes to winning consumers’ trust and confidence, Wall Street lags far behind Main Street insurance agents and carriers.

Topics Agencies Market