9 ways to unleash the power of social media in insurance

Think about how you surf the Internet and what you do on yourpersonal social media profiles. If you’re considering a purchase,maybe you look up the product online to get its specifications,pricing and, most importantly, to read the user-generatedreviews before going to the brick-and-mortar store.

Or, you might look for the Facebook, Twitter or Yelp pagesof the product or the company that makes it before making a buyingdecision.

At a very early stage, your opinion is being formed about theproduct you’re going to purchase. This is one of the many ways theInternet has changed the way we shop.

Comments on social media impact insurance-buyingdecisions

For us in insurance — an industry built on bothproducts and services — Internet reviews and social mediaword-of-mouth play an integral part in credibility, too. Potentialclients, especially millennials, trust advice from friends, familyand even strangers on social media about the best insuranceproducts or carriers, according to Accenture’s report, “The digital insurer: Unleashing the potential ofsocial media in insurance.”

“Nearly half (48%) of the 6,000 insurance customers from 11countries participating in Accenture’s 2013 Consumer-Driven InnovationSurvey said they would consider comments on social media inmaking their insurance-buying decisions,” states the report. Thisis reason enough to pursue a social presence. In addition, socialmedia is also a great place to find information about consumers,including their behaviors and possessions.

Here are other findings from the survey, along with somerecommendations on how to start a successful social media campaignand keep innovating in the digital world:

1. Create better communication between brokers andcustomers.

Social media channels might present a new way for advisors,brokers and insurers to communicate with clients. The study foundthat 92% of respondents saw risk management advice as either a“good” or “critical” service desired from their insurance provider.“Given the relative infrequency of contact between consumer, agentand insurer through traditional channels, social media data canhelp fill in the gaps,” says the study.

2. Stay tuned in to clients' important lifeevents.

According to the report, a whopping 80% of respondents sawpersonalized advice from their insurance carrier as either“somewhat” or “very” important. Another important aspect to keep inmind is that social data is rich with life events and “otherinformation that can aid agents and insurers in providing morepersonalized and relevant experiences and offers.” And, right now,it’s all about creating a great online experience for clients.

3. Unleash brand rejuvenation.

The report found that most carriers use social media formarketing purposes, public relations or servicing, while they keepworking to build trust and rejuvenate their brands. They alsodesign and execute marketing campaigns, for example, by using brandicons like Progressive’s Flo, Allstate’s Mayhem and New York Life’sKeep Good Going campaign. Each of these campaigns or charactershave specific pages on Facebook, often referred to as “passionpages.”

Another great example of making a brand relevant and visible tothe consumer is how Farmers Insurance “sells” virtual insurance forfarmers against crop withering in the popular Farmville Facebookgame.

4. Reveal new products to the world.

More than half of respondents (55%) said that they woulduse one or more of a variety of prospective insurance servicesoffered through social media. And some insurers are beginning touse social media to introduce innovative products, combining socialmedia and mobile.

5. Discover social care (aka social media customerservice).

Major carriers already provide customer service via social mediachannel in a process often called “social care,” says the report.It also found that, “Consumers that have a positive social careexperience are nearly three times more likely to recommend a brandto others and nearly 40% of companies experience a 10% reduction insupport costs from implementing social care, with greater customersatisfaction.”

6. Use social media as a claims management tool,too.

Social media can also serve as claims management tool, wherecarriers can interact with customers around a claim and help toaccelerate the recovery process. Nearly one-third of respondentssaid they are using or plan to use social media related to claimsin the next two years; 44% would switch carriers if their preferreddigital channels were not available during the claims process.

Try the following exercise: Log in to your policy with yourcarrier and try to make a one-time online payment. See howdifficult or easy it is to make. Nothing makes a policy owner moreannoyed than trying to make a payment online and not being able tobecause of a lack of a user-friendly paying platform or unclearinstructions on how to do so.

7. Identify potential fraudsters.

Many special investigation units are using social media data tofight potential fraud in workers compensation and disabilityclaims. This is also a tool that law enforcement is currentlyusing, thanks to some brilliant criminals who have posted photos ontheir personal Facebook bragging about clothes they stole, forexample.

8. Recognize that social media usually matures in fourstages.

Accenture’s study cautions that, “Insurers will do well to actquickly to mature their social media capability, both as a naturalextension of their core business and as a catalyst for new,disruptive business models.” It also found that social media“matures” in four phases:

Listening: When organizations employ tools andservices to monitor, capture, analyze and respond to publicinformation available from social media to assess current customersentiment and identify sources of significant influence on customerdecision-making.
Engaging: Companies engage with customers in asystematic fashion, seeking to establish and build a presence,audit and report on activities.
Optimizing: Customer relationship managementprograms are linked to social media channels to track the progressand returns of specific campaigns and identify effective socialchannels.
Transforming: IT-enabled social tools areintegrated with other business systems to reinvent the traditionalmodel or create new disruptive business models.

9. Ultimately, your social media success will dependon:

Executive support for enterprise-wide socialmedia: Successful companies allocate the appropriateexecutive support and attention to social media efforts.
Social media strategy: Create a strategicvision of how social media can be incorporated into the fabric ofthe business. It is also critical to impart clear direction to theorganization. A sound strategy must take into consideration thechallenges of data privacy and address these through abusiness-driven compliant approach.
Resource commitment: Maintaining focus onsocial media programs is challenging and requires full-timecommitment.
Social media innovation lab: Creating a labwhere new technologies are tested and their business application isexplored in a fast, efficient and safe fashion is critical forsuccess.
Willingness to experiment quickly andinexpensively: Establishing a test-and-learn philosophy— where the outcome of an unsuccessful experiment is notpenalized but accepted as learning — is critical to pushingthe limits of what’s possible and challenging conventionalwisdom.

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