In the last few years, technology innovators have brought consumers a profusion of so-called social web or Web 2.0 tools, such as blogs, social networks, video sharing sites, microblogging, and other products. These new services are vastly different than prior generations of web sites because of three key elements:

  1. They are driven by users.
  2. They are linking people to one another like never before.
  3. They are putting power in the hands of consumers, who are influencing and informing each other.

People are now asking each other questions in real time and from all over the world — and giving each other answers. But are these new web tools relevant to insurance professionals? Do they make any difference to people who need to bring customers and premiums in the door, and keep them there?

The answer is definitely yes.

In order to understand and use the social web, we must realize that a sociological shift is taking place. Yes, technology enables what is happening in social networking. But technology is simply extending and broadening the human experience of communicating with and learning from others.

Rick Morgan, the entrepreneur who founded transactional filing for insurance agencies, offers the perspective that, in centuries past, the front porch of the general store was the place where folks gathered to share news and stories and trade goods. The industrial revolution and the long-term rise of mass production and mass communication gave businesses and institutions a strong position and subjugated the individual.

Now it is turned back the other way: The social and interactive technologies of Web 2.0 are ushering in a new era of relationship and community — there is a power shift from the institutions back to the consumer.

Insurance agents have always been in the business of answering questions and giving advice while providing coverage. These new web tools can help insurance professionals gain new means of influence with consumers as well as peers.

Insurance producers, agency owners, and managing general agencies in the property and casualty insurance industry have an unprecedented opportunity to add one or more of these tools to their branding and marketing communications mix. However, this new environment gives rise to a new round of questions that agency marketers should consider, such as:

  • What tools should agencies invest in?
  • Are blogs better than social networking sites?
  • Should agencies drop their traditional web sites?
  • Do e-mail newsletters still work?
  • Is advertising — whether it is the old-fashioned Yellow Pages listing or something more involved — still relevant?

Some insurance agencies and wholesalers are ahead of the game; they have figured out how to make these trends work in their favor. Our research revealed several pacesetters:

  • An East Coast specialty wholesaler is using e-mail marketing to connect both with its vertical market and with brokers.
  • A New England insurance agency has put its principals front and center with a compelling blog for consumers.
  • An industry services organization is using the Twitter microblogging platform to highlight its research and expertise for the media.
  • A West Coast agency, which revamped itself using a new brand strategy several years ago, has refreshed its market presence with blogs.
  • A national technology provider has overhauled its brand to make itself more distinctive and memorable for its insurance industry customers.
  • Big brand-name marketers are bringing new creative approaches to their advertising, but they are basing it on suggestions and feedback from consumers.

All of these success stories have one thing in common: They came about because of management's willingness to experiment with social web tools and not wait for others to blaze a trail for them to follow. Many of them also looked first outside the industry to see what innovators in other markets were doing, and brought these ideas within the insurance industry. G

Charles Wasilewski (charles@Aartrijk.com) is director of marketing communications for Springfield, VA-based Aartrijk, a brand consultancy specializing in insurance and financial services. Aartrijk Brand Camp, the industry's first conference to examine social networking and branding exclusively for insurance marketers, will be held in September in Chicago. More information is available at www.Aartrijk.com/brandcamp. Phone 703-912-7974.

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