For years, the argument to legalize the use of marijuana has been that if you legalize it, you can regulate it. It may surprise you to hear this, but the same basic principle is one that the insurance industry should apply to social media.
Perhaps the most dangerous myth swirling around about social media is that it's just a fad. As we all know, fads run a predictable course and then fade away.
Those insurance organizations buying into the myth of social media as a fad could easily be tempted to turn a blind eye and not invest time, energy and talent into finding valuable ways to use social media, or to resist adopting a definitive social media policy to regulate it. That could have serious consequences.
One of the biggest threats of social media inaction is to risk having a big, dark cloud cast over your brand.
Chances are that even though your company or agency has not made a conscious decision to participate in social media on a corporate level, your firm's name and logo are splashed all over Facebook pages, LinkedIn profiles and Twitter accounts. 
Unfortunately, all the exposure your organization gets will not be positive, but the nature of social media means you have a chance to recapture control of the message and the eventual outcome of the situation based on the way you handle both positive and negative opportunities to talk back.
Your employees and your policyholders are likely already participating on an individual level. Without guidance from you about levels of participation, information that may and may not be shared, ways the company name and logo may be used, and how negative posts from policyholders and partners should be handled, these individuals will make decisions that may not fit with your corporate strategy and goals.
By putting a corporate social media policy in place that ties back to customer service and new business goals, corporation communications and branding guidelines, and which strictly adheres to privacy laws, you have the ability to influence how existing and potential policyholders, as well as employees and distribution channel partners, will perceive your brand.
Another factor to consider when it comes to social media is the age-old saying that "ignorance of the law is no excuse." When your firm chooses not to participate in social media on a corporate level, you limit the organization's ability to take advantage of positive situations–but more importantly, you limit your ability to head off potential disaster.
Lack of knowledge about information being shared via social media, or failure to accept responsibility for control over social media participation relating to your company, does not mean you cannot be held legally liable for the statements and actions of employees and partners alike who may claim to, or appear to be acting on the company's behalf. Remember, ignorance of the law is no excuse.
Let's examine a simple hypothetical situation between a disgruntled policyholder and an independent agent, during which the policyholder publicly decries injustice based on an insurance company's refusal to pay a recent claim via an online status update to a social network.
Next, perhaps the agent who sold the policy agrees the claim should have been paid and that the policyholder was wronged by the insurer. Will the policyholder take that information to heart and re-file the claim? Or will a lawsuit ensue based on information provided publicly by both parties in the social media arena?
Further, is the insurer now responsible for making good on the claim because of the agent's statements, even if extenuating circumstances clearly made the claim ineligible for payment?
The answers to the above questions are not clear cut, but to save the relationship with the policyholder and maintain the company's image as an upstanding corporate citizen, a compromise will likely have to be reached on the aforementioned claim.
Of course, the area of law relating to social media is still evolving, but in the meantime, gray areas exist around the extent of the risk social media presents and the limits of liability a company may possess.
The best way to mitigate your company's risk is by setting a social media policy in place and closely monitoring participation by those who represent your organization in any fashion.
Developing a definitive social media policy can help protect your brand's integrity and limit your company's liability for online actions. Even though it won't be an easy process, by utilizing a team approach you can build a comprehensive corporate social media policy.
Here are some basic steps you can follow to get started.
o Define, document and prioritize your company's purpose for participating.
o Set attainable, measurable goals for social media participation.
o Map social media initiatives back to strategic corporate goals.
o Identify the specific individuals, departments or functional areas that will be responsible for social media initiatives.
o Outline how much time and effort your organization is willing and able to invest.
o Use social media tools to further goals while maintaining consistency in corporate messaging and branding.
o Implement an integrated plan that incorporates social media tools with existing tools, departments, individuals and channels.
o Calculate your return on investment by measuring positive customer interactions and proactive ideas gathered from social media channels.
o Re-evaluate and redirect on a regular basis to keep your goals within reach and your approach fresh.
"Hide and watch" is not a strategy you can effectively cultivate when it comes to social media participation. As the demographics of your employees, existing and potential policyholders, and distribution channel partners change, so should your approach to doing business.
The next generation of individuals with a stake in the insurance process has grown up hooked on social media. These individuals feel no apprehension about taking their fights straight to a public forum.
How you rise to the challenge–or not–can define your success in the future. Avoid the dangers of inaction by establishing a corporate social media policy for your company today.
Jennifer Overhulse-King is the principal owner of St. Nick Media Services, a B2B PR, marketing and media services firm consulting to firms in all industries but with special areas of concentration in technology and insurance. She can be reached via e-mail (jen@stnickmedia.com), Twitter (www.twitter.com/stnickmedia), Facebook (St. Nick Media Services), LinkedIn (www.linkedin.com/in/stnickmedia) and many more places.
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