For Insurers, social media is no longer just for marketing. As Hurricane Isaac threatens in the Gulf of Mexico, many proactive insurance companies are using social media to communicate with customers; offering insight on preparing for the storm, tracking the radar, and offering instructions on how to file a storm-related claim.
Insurers have found that they can support customers and get information to them faster through the two-way dialogue enabled by social media. Twitter, Facebook, YouTube and blogs are being used in addition to the traditional channels of email, television and call centers. Not only are the social media channels faster than the traditional channels, but they are less costly to the insurance companies. And the alternative, not responding appropriately through these channels, can be extremely costly. See the article detailing the lessons Progressive Insurance learned through a social media "disaster".
Today, insurers are leveraging social media mostly for their marketing efforts. According to Strategy Meets Action (survey, 2011), 82% of social media investments for insurers are focused in the areas of:
- Identifying market opportunities
- Integrating into campaigns and marketing operations, and
- Managing their brand identity
But the possibilities for social media extend far beyond marketing. In addition to providing customer service through communication during the threat of a natural disaster as described above, Insurers are also figuring out strategies on of leveraging social media in non-standard ways. The data gleaned from social media can also be used in the areas of claims, operations, underwriting and policy servicing. This was heavily discussed in a recent Social Media Roundtable for Insurers that SAS sponsored in partnership with Insurance & Technology. 25 insurance executives gathered in Hartford, CT representing marketing, innovation and technology roles for some of the nation’s largest insurance organizations.
To read more about the roundtable discussion and the topic of social media, download a copy of the white paper “What’s not to ‘like’? – What social media can do for Insurers.”
The moderator and expert panel shared information and asked questions to feed the discussion. The feeling was consistent across the various functional areas -- there is far-reaching potential for social media in these other areas, but many companies have been slow to develop the strategies and leverage the solutions to address these new channels. Ways that insurers can use social media information for business purposes is further discussed in a recent post on the Analytic Insurer blog.
Twitter, Facebook, blogs, and online communities provide a storm surge of “big data” as it has come to be known. Insurers that use this information to create more predictive and accurate customer profiles, manage operations and make faster decisions will have the competitive advantage.
If you have your own thoughts about how insurance companies can leverage social media, please share them with a comment. Thank you for following!
