It's official: the momentum behind social media is changingbusinesses one at a time and collectively.

Even though the direction is clearly being shaped outside theindustry, insurers are paying attention and some are taking boldsteps. The action surrounding social media goes well beyondFacebook, YouTube, and Twitter. The ultimate influence on thebusiness of insurance will be profound—and the impact, even today,is extending far beyond branding.

The technologies behind social media hold great promise for usein customer-facing applications and for making improvements insidethe insurance organization. These technologies offer new sales andservicing avenues, new methods for cultivating employeeprofessional development, new avenues for building teams, and willprovide valuable help in meeting staffing objectives.

The opportunities are vast and involve all parts of an insuranceorganization: marketing, claims, human resources, IT, customerservice, and more. The challenge is to make sure that all of theseparts are working in concert around a common goal and presenting anappropriate, effective face to the social world.

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A recent SMA study shows that more than 80 percent of insurersare studying and monitoring social media. Nearly 40 percent haveone or more initiatives underway, even though they have not yetlaid out formal plans. Future plans are predominantly centered onmarketing, with many planning applications for distribution thatinvolve the agent and/or go directly to the customer.

The most remarkable news, however, is what is happening in coreareas of underwriting, policy, and claims. Twenty-five percent ofinsurers say that they are planning activities around social mediain all of these areas.

Social media has redefined the boundaries of communities thatwere historically shaped by physical space. The power of newvirtual communities extends reach and the opportunity for targetedcampaigns and offerings. Communities open the door for messagesthat deliver useful information, and in catastrophe situations caneven prevent loss and help save lives.

Insurance companies understand that they need to be proactiveabout actively managing their cyberspace image rather than leavingit to their employees, customers, and external activists to createit for them. Social media sites such as LinkedIn, Facebook, andTwitter, and social media tools like wikis, blogs, RSS feeds, andforums help insurance workers find and nurture relationships withother professionals that can help them learn and grow.

Common interests can be as broad as life insurance or as narrowas claims fraud specifically related to soft-tissue claims. Socialnetworks are providing connection between employers and potentialemployees, opening the door for those wanting to learn more about apotential employer and facilitating interaction with people whowork or want to work for a specific company.

Decisions about what are the best ways to leverage the socialweb are rarely isolated. Rather, they are usually linked to howother organizations communicate and interact to sell and servicethe business. Insurers are recognizing the need to coordinate theirapproach and resulting market presence with agents and other keypartners. Likewise, the strategy for capitalizing on and reactingto this connected, information-driven culture and workingenvironment cannot be isolated.

Social media considerations should play a significant role in aninsurance company's overall business strategy and need to be a keypart of the decisions that guide tactical directions andoperations. The first steps are to set goals and establishenterprise-wide policies for social media. Insurers need to beaggressive about developing a plan for how social media can workfor them and how they can best manage it for their advantage. Thekey is to get started now, as the world is moving ahead. It is timeto get connected!