My idea for the next version is rather... Well... Rather something.
I think you should be able to have the Navy tag you have in the beginning, be able to have the faction you belong to instead. I'm pretty sure that made no sense, so, here's an example:
John is in the Rheinland Military.
John goes by "John".
When appriached by another player in a ship it shows "RH Military-John".
I'm pretty sure there is a limit to the number of characters that one can have as a tag, but people can always make shorter tags to fit. What the tags say should be up to the leader of the clan/faction/group.