Social media began to impact insurers in 2009 as pioneeringcompanies used the networks to promote and protect their brands.Over the next several years, various surveys charted its growinguse and sophistication. Here in 2013, social media in insurance hasestablished a solid base in North America.

How solid? A survey conducted by Celent and Locke Lord, LLPdiscovered that 80 percent of insurers report that they are usingsocial media in their business and that of the remaining 20percent, nearly half—45 percent—plan to implement social toolswithin the next year.

A new report, "Social Media Use in North American Insurance,"explores the benefits, barriers, plans, legal considerations, andbusiness results related to social media in insurance. The feedback provides a snapshot of the current status and also anindication of what insurers expect in their "social" future.

"The survey data confirms that social media use in insurance hasestablished a firm foothold in North America," says MikeFitzgerald, senior analyst with Celent's Insurance Group and authorof the report. "We see insurers of all sizes and in most lines ofbusiness on social for marketing, customer service, sales andcatastrophe response functions."

Most insurers state that they have gained social media benefitsprimarily in marketing, and a surprisingly large number haveidentified customer service as a key potential value area,according to Fitzgerald. Legal, regulatory, and compliance issuesare the highest ranked barrier, he adds, with regulatory complianceidentified as a significant area of uncertainty.

Strategies, goals and execution vary from company to company,according to Fitzgerald. Celent encourages any insurer writingautomobile, disability, workers compensation, and/or employerliability lines to evaluate the benefits of social media as a fraudmitigation tool in both underwriting and claims functions.

Also, as insurers build social skills, carriers should evaluatethe benefit of leveraging these to extend services to its agencyforce. Such services can include creation of content, building ofsites, and/or training on social media.

 Other findings include:

• No one rated their social media technology tools as excellent;the fact that social media technology continues to mature wasevidenced by the fact that most indicate that they cannot offer anopinion on the usefulness of these tools.
• The number of companies offering assistance with social mediato their agent force is low.
• Over one third of insurers using social state that they havenot established a social media strategy; beyond missing a valuablecommunication opportunity, this can create a risk management issuein the areas of employment law, regulatory compliance, andprotection of intellectual property rights.
• Over half of insurers allow employee access to social mediasites from their company network based on the specific jobfunctions or in targeted groups of employees. An additional thirdallow access with no restrictions. This reflects a more liberalapproach to social media than has been seen. Celent views this asan example of how increased interaction via social media in societyas a whole is influencing the insurance community. Additionally, itmay represent a growing confidence by employers in responsibleemployee use.