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to the point DEDICATION BEYOND DESCRIPTION We can be proud of the insurance industry’s record in creating a safer world By Emanuel Levy
Not long after the 1965 publication of the book Unsafe At Any Speed, I had the opportunity to interview its author, Ralph Nader. Because the book was daring in its challenge to automobile manufacturers for totally ignoring safety in design and construction, it was widely hailed as a courageous exposition of an industry’s disregard for the life and limb of American car owners, passengers and pedestrians. Nader became an immediate celebrity and was sought after as a speaker, including by independent insurance agents associations. Evidently emboldened by the recognition of his ideas and his elevation to safety guru, Nader included in his platform presentations sharply critical remarks about what little had been accomplished prior to his arrival on the scene. The independent agents associations were a particular target for his denigration. Members of the insurance press, then a vibrant industry force, often wondered why the agents were willing to pay Nader to speak at their meetings and conventions, only to hear him vent his criticism of their public service for safety. So, when I got the opportunity, at the annual meeting of the Independent Insurance Agents Association of Connecticut, for a one-on-one interview with Nader, I put the question to him. I described the long and dedicated efforts by independent agents and brokers to promote highway safety and to eliminate driving and road hazards and then asked him if he didn’t think this effort had resulted in the saving of even one life. There was a slight pause, but the very dismissive response was: “I don’t think so.” I did not believe the interview was going to be productive, and I decided, perhaps unfairly, that Mr. Nader had a narrow perspective that did not acknowledge the accomplishments of others. I am not disparaging what he did for auto safety during his career as a consumer advocate, or denying that his book ripped away the veil of disregard for safety by the manufacturers; but because of what he said and how he said it at that interview, it has always been my feeling that he wanted all the glory for himself. In my long and pervasive connection with the insurance industry, I have been unequivocally impressed by its dedication to serving public interests beyond what it does for a living. I’ve often wondered whether the public at large is aware of the accomplishments in the saving of life, limb and property through monumental projects and a keen awareness of exposures. I’ve wondered also if the industry itself, and particularly brokers and agents, has been sufficiently zealous in getting the story to its customers and its circle of friends, or to the news media, when the opportunity has presented itself. The key words here are “sufficiently zealous.” Some years ago, the Insurance Information Institute (I.I.I.) created a campaign to call attention to the public service aspect of the business, but it limited its audience to the editors of house publications of its member companies. The messages, which called attention to specific programs, each bore the headline “Be proud you work in the insurance industry.” An I.I.I. spokesman told me that those messages, with approximately 500 words each, were used extensively by member companies, and that there was positive feedback. Industry achievements referred to included the battle launched in the 1960s by property and casualty insurers and their trade organizations to force the U.S. Department of Transportation (DOT) to mandate the installation of both seat belts and air bags in newly manufactured cars. It took until 1983, and legal action that reached up to the U.S. Supreme Court—brought by several insurance companies led by State Farm Insurance Company—to wrest the DOT from its lethargy and force the manufacturers to act. Ultimately they were glad they did. As many people in the business are probably aware, the industry’s emphasis on safety has never abated, and programs are ongoing to eliminate highway hazards such as excessive speed and impaired drivers. The I.I.I series included essays on child restraint devices and the industry’s research and championing of their use; its persistent efforts to reduce drunk driving following the lead of MADD (Mothers Against Drunk Driving); its leadership in inducing the widespread use of seat belts; its success in reducing industrial accidents through innovative programs including the use of engineering specialists; the widespread use of smoke alarms through its offer of discounts for installation; the development of fire- resistant, safer and stronger materials as well as devices and practices to reduce death and injury at the workplace; the fight to force reluctant motorcyclists to wear helmets; and, by no means least, the introduction of incentives to spread the concept of safety. The I.I.I. messages emphasized that these industry actions were responsible for saving countless lives and reducing the extent of injuries. There is little question that these results were directly connected with the insurance industry’s creative and continuing contributions. Regrettably, the public at large seems to have little real awareness of how the quality of life has been served by an industry that is often considered monolithic and distant. Those who work in the industry, primarily the producers who have direct relationships with the vast body of insureds, should look for opportunities to get the public service message across. Tremendous detail on what has been done, and what continues to be the industry’s service culture, is available simply by browsing the Internet looking for safety, fire prevention and similar prompts. One can get quite an education about how the insurance business, through its associations (insurers and producers) all over the country, has performed and continues to perform. The service goes on, and while there are still too many vehicular accidents—injuries and deaths— too many unnecessary fires, both residential and commercial, too many industrial mishaps, they are a shadow of what life would be like were it not for the industry’s history of intervention. When did it start? Public service input by the insurance industry is hardly of recent vintage. The concept goes back well over a century. Take, for example, the National Board of Fire Underwriters (NBFU). This organization was created at a meeting of representatives of 81 insurance companies held in New York City on July 13, 1866. The conference was motivated by a series of disastrous fires that caused the deaths of many fire insurers, as well as by the recognition that some means of deterrence needed to be adopted. But it was the Great Chicago Fire of 1871, for which Mrs. O’Leary’s cow took a bum rap, that galvanized the NBFU into its first historic direct action. Three years after that fire, which resulted in the death of some 300 persons, destroyed about 17,000 buildings, made 90,000 homeless and cost $175 million (in 1871 dollars), NBFU conducted its own investigation. It concluded that the “deplorable” fire safety conditions in the city were responsible for the conflagration The NBFU engineers found that conditions had even worsened a year after the fire, charging, among many other deficiencies, that the fire department neglected its duties and failed to train or equip the firefighters. The insurance industry’s NBFU watchdog, only a few years in existence, set forth a list of six specific demands to the mayor of Chicago and its city council. They called for remedial action, setting a three-month limit for compliance. The demands had muscle, threatening to cancel all fire insurance in the city if they were ignored. They were not ignored, and the city agreed to accept the NBFU recommendations. This series of events evidently set a precedent that became a means of establishing standards for fire departments and firefighting and for the responsibilities of municipalities and other entities. During its distinguished history, the NBFU is also credited with devising the first model building code in 1905. To fulfill its self-chosen mission, it gave copies of the code, at no charge, to every city in the United States. It would take a book to list what followed. Few people in the business today will recognize the NBFU abbreviation or the designation National Board of Fire Underwriters, because they no longer exist as service entities. The work of NBFU was absorbed through consolidation into another industry association many years ago. Neverthe-less, its significance as the precursor to many public service divisions of the insurance industry cannot be over-looked in assessing the industry’s numerous monumental achievements. Especially worthy of mention is the long-established and highly regarded Insurance Institute of Highway Safety (IIHS) and its affiliated units, including the Highway Loss Data Institute (HLDI). These outstanding industry-funded organizations have gained exceptional recognition in the news media and by auto manufacturers, which not only adopt recommendations for structural safety but tout them in their advertising messages. The public in general should be made more aware that these invaluable services are insurance industry funded. And while the Insurance Services Office, once directly funded by the industry, is now an independent organization, it is directly linked to the industry. Now, as it has in the past, it supports the efforts of individual communities to maintain and improve their fire protection services. Through its affiliated insurers, it offers lower premiums for communities that invest in their firefighting services. The Underwriters Laboratories (UL), widely recognized for safety standards in the electrical and other fields, was acquired by the insurance industry in 1901 and maintained as an industry-funded service for many decades, though it now operates independently and has international subsidiaries. These organizations merit much wider exposition, and this columnist intends to do that in a subsequent issue. Much credit must be given to the associations of producers—national, state and local. For generations they have been responsible for incalculable public service in auto safety, protection of property and fraud prevention, using their expertise and their link to legislative bodies. They need to get that message across to their customers, along with the story of the industry contributions, when the occasion arises. There is absolutely no doubt that the industry’s efforts have resulted in the saving of thousands of lives, the prevention of millions of injuries and the safeguarding of property. All of this has been done with generous funding, without much fanfare and publicity, but with dedication, persistence and creativity. The many generations of people involved in the research and the planning of these efforts are largely quiet heroes. There are probably thousands of them, and they deserve the gratitude of everyone. The Insurance Information Institute got it right in its headline used with the essays sent to the house magazines of its member companies: “Be proud you work in the insurance industry.” No other industry seems close to matching it in public service. * The author |
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