An American political and communications strategist said the Bermuda Government should take a more active role to ensure that the Island is not singled out as ?inordinately risky? by foreign regulators and legal overseers as a result of current investigations into the insurance industry.

Harry Clark of the Stanwich Group addressed a BIBA forum last night at a time when a probe spearheaded by New York Attorney General Eliot Spitzer has made the insurance industry ?the new ground zero for the kind of controversy that over the past few years engulfed Wall Street securities research, accounting firms and mutual funds?.

While Bermuda has not been the target of the investigator?s laser, Mr. Clark said the Island is ?surely at risk for collateral damage?.

In an interview with, Mr. Clark who has provided public policy, political and strategic communications advice to companies, trade associations and political leaders for the past 25 years, said that with local insurance and reinsurance companies taking a conservative largely lawyer-driven approach to the probe, Government as well as industry groups not in the direct line of sight of the regulators can play a valuable role as spokespersons of the Island and defenders of the industry generally.

The issues raised in the investigation extend far beyond Bermuda but he said that, in the face of an aggressive investigation, the Island still must make sure that is not singled out as a more dangerous, risky jurisdiction.

?[Government and trade groups have to be sure that the regulatory community and the legislative community and the media both in the EU and the US are fully aware of the distinctive advantages and unique characteristics of Bermuda and that Bermuda is not reticent about talking about the nature of the industry and how it is practised there,? he said. He added that whenever there is a crisis, media and investigators tend to presume that if someone is hiding under a rock there is a good reason.

?The more visible and more available spokespeople are for the Island and for the Ministry of Finance and for the insurance and reinsurance industry and the hedge funds as well, there will be a related implied confidence that they are not hiding these kinds of things,? he said.

Mr. Clark said the worst thing a company can do when it finds itself under the spotlight is what Arthur Andersen did.

?Don?t shred documents and don?t delete emails,? he said.

He said each company that lands under the microscope should assume the posture of a ?cold, hard realist? ? understand where they are and what they are facing in a multi-stakeholder environment. Then, they should shape a comprehensive, sustainable and sophisticated strategy to deal with a scenario that entails legal, regulatory, political, market and reputation risk.

?Once it was possible to talk of having a political problem or a legal problem or a media problem and obviously market reaction was always a concern,? he said. ?Now, it?s difficult to even see the break points between those kinds of challenges. A legal problem is usually one step away from becoming a media problem which soon becomes a political problem. And of course, uncertainty can cause a quick and damaging impact on share price,? he said.

Sustainability is another crucial element, he said, as a successful strategy must recognise that crises ?have a tendency to hang around for a while?.

The strategy must also be sophisticated, he said pointing out that in today?s wired world, a single misstep while in the glare of the spotlight will be seen far and wide and echoed repeatedly.

?For a company, a misstatement in the Press can lead to opening an SEC investigation so what you say in a Press release or an email, what actions you take, what guidance you give your employees has to be carefully considered.?

Mr. Clark said that when under scrutiny the media will demand the same level of access to corporate leaders as they would an entertainer, rock star or politician.

Candour, transparency, clarity and simplicity are key, he said, adding that the more obscure the answer the more likely it is to be misinterpreted.

?What you say must be immediately understandable to your employees, your clients, your shareholders and to the layperson that turns on CNBC or BBC in the morning,? Mr. Clark said. ?If your answers are only understood by the smartest guy in the room, you don?t have a believable message. If your response is only satisfactory in the eyes of your general counsel you will not win a news cycle. When your employees are at a party or when they run into friends at a soccer match, they have to be able to voice the same message you do ? with the same clarity and the same conviction.?

Mr. Clark acknowledged that the insurance and reinsurance industries will be challenged to offer clear answers since the very nature of the services and products offered are complex.

However, he said: ?There is a widely held view, especially among the media, that complexity is bad, simplicity is good. For some in your industry, explaining what you do and how you do it, and what the value added is, will be an enormous challenge. But it has to be met and soon.?