The following are some pro tips from our NEW white paper, Successful Social Media Strategies for Insurers, to help you take full advantage of the opportunities provided by social media.
The quantified self and gaming will be an important phenomenon for insurers. People, especially in the Western world, are increasingly logging personal data – such as how many hours they sleep, the number of steps they take, etc. – posting it on social media and using that data to compete against others.
Insurers have already created some innovative partnerships to help their customers get healthier and to obtain access to treasure troves of important data. For instance, John Hancock launched its Vitality 2.0 program, which rewards life insurance customers for healthy living. Individuals track their physical activities (such as the number of steps they take per day) via their Apple Watch or Fitbit to receive savings and rewards. The program was expanded in 2016 to also reward policyholders for purchasing healthy food.
It’s important to note that all of this new data, in addition to the billions of data points being generated by the Internet of Things, will necessitate an effective policy administration system for insurers.
- Start Unlocking the Value of Data
It is virtually impossible for an insurer to craft an effective social media strategy and approach without a top-notch, advanced analytics solution. Today’s “data streams” are continuously flowing from diverse sources, such as core systems, portals and of course, social media. The challenge is how to best incorporate all of these streams into data-driven decision processes.
In the not-so-distant future, insurers will be able to master data analysis and fully unlock the value of the streams generated by social media. But today, this is still an emerging area with insurers trying different methods. The reliability of the data and privacy concerns are still being worked out.
- Use Social Media to Detect Fraud
With insurers constantly focused on uncovering and eliminating fraudulent claims, which can drain millions of dollars unnecessarily, social media data mining offers a wealth of data that can help prove that a claimant is being less than truthful.
“This is an increasingly common situation, where we are able to use social media as part of our toolkit to be able to get rid of these claims,” said Catherine Burt, the national head of counter fraud at law firm DAC Beachcroft, which frequently works on personal injury cases for insurers, to The Guardian newspaper.
But insurers have to be mindful not to overstep and invade the privacy of their customers. Admiral planned to use Facebook posts to offer insurance discounts to young drivers who were considered low risk, but Facebook eventually blocked the move.
- A Modern Policy Administration System is Crucial
A policy administration system, modern back-office technology and a full digital suite are crucial for maximizing insurers’ ability to stay ahead of their competitors.
Consumers, especially millennials, expect immediate service and demand to be known by their service providers. They refuse to be “reintroduced” during every interaction with the insurer and want only relevant data and appropriate offerings. Using a fully digital suite and innovative policy administration system, insurers will have a 360-degree understanding of their customers, interact with them via their preferred channels, expose only the relevant data and offer new products and services that are the right fit.
My new white paper contains additional tips, including five social media content strategies for insurers. Click here to get the white paper now.