The importance of alpha branding

Interestingly, the number one brand is Apple, with Google at number two and Amazon at number 8. The reason for mentioning these brands is because of something London Market pioneer Robert Hiscox said a few years back (quoted in Ernst & Young’s Specialty Magazine Dec 2012).

“How we sell insurance better is crucial. Lloyd’s has a nasty habit of sitting and waiting for it and, in general, we tend (apart from our internet business) to sell the same products in the same old way as we did 40 years ago. The question I ask myself is: “Do we do enough research and development?” I’ve just looked at our household policy and asked, ‘Is it as good as an Apple product?’ I don’t fear other insurers; I fear Apple, Google and Amazon. If they start selling insurance, we are in trouble.”

Branding is crucial for all businesses but for global players, it is doubly important. It’s also vital to have a brand that is easily recognisable and pronounceable in all languages and dialects.

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Which brings me to insurer brand names.

There has been a definite move by many insurers to be at the top end of the alphabet. Whether this is to be near the front of the phone book (who even uses one any more) or at the top of any alphabetical list, is not clear. AXA, AIG, Aon, ACE (alright I know they are Chubb now). But there is more. Can you see the connection? Three letters. Easy to remember, to spell, to pronounce in any language. JLT, QBE, RSA, HCC (now Tokio Marine HCC), Gen Re (General Re), ZFS (Zurich Financial Services), even IPN (International Programme News) and CRE (Commercial Risk Europe).

One thing is sure in global branding. No-one likes long complicated names and certainly not more than two words if possible. Which explains why, whenever there is a merger or acquisition, companies announce that the acquired company will definitely not lose its identity, but after a while, it is quietly dropped. Who remembers Corroon? (Corroon & Black joined with Willis to create Willis Corroon).

Cooper Gay now calls itself Ed. Will any insurance group dare to go for one letter? Or a symbol like Prince? Can’t be far away.