Although most life and property-casualty insurers are currently using and plan to grow their use of social media, many are still ambivalent on how useful it actually is for their businesses, according to a new study by Moody's.
|The survey of 66 rated U.S. insurers (42 life and 24 P&C) found that 86% plan to grow their social media use within the next year.
|Other key findings include:
|- Most insurance companies using social media do not use it to talk about insurance.
- None of the companies believe social media is very effective in increasing direct sales.
- Companies' biggest reason for using social media is brand promotion and their biggest concern is legal and regulatory issues.
- Insurers also use social media for marketing, whether between wholesalers and financial advisors, or agents communicating with existing clients.
- There is very little difference between how life and P&C insurers use social media.
"For U.S. insurance companies, social media programs are in their early stages but based on our recent survey, many companies expect to make increasing use of social media in the future even if there isn't a direct link to sales," says Scott Robinson, Moody's senior vice president and author of the report. "However, we do see social media use as a potential future credit positive for early adopters, since over time their experience will likely give them an edge in branding and marketing relative to latecomer competitors."
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