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15 January '15 | Ralf Reich

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14 January '15 | Manesh Rajendran

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13 January '15 | Anil Gandharve

The New Omnichannel Dynamic: Finding Core Principles Across Industries

13 January '15 | Debjyoti Paul

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02 December '14 | Anshuman Singh

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02 December '14 | Indy Sawhney

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01 December '14 | Amit Varma

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06 October '14 | Raman Suprajarama

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18 September '14 | Gaurav Johri

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05 August '14 | Debjyoti Paul

The Dos and Don’ts of Emerging Technologies Like iBeacon

30 July '14 | Debjyoti Paul

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17 July '14 | Anshuman Singh

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04 June '14 | Koushik Ramani

8 Steps to Building a Successful Self Service Portal

03 June '14 | Giridhar LV

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13 January '14 | Ramesh Hosahalli

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Impact of Social Media in the Insurance Sector

Posted on: 12 April '13

Influence of social media on the insurance sector is not as critical as that of other sectors like retail or media. This is because people of the younger generation who are usually the most enthusiastic on social media networks are not the typical target segments for insurance companies. However, in the modern world, ignoring the impact of social media in any industry is unacceptable because this generation which is fed on mobile and social media will sooner or later start interacting with insurance organizations as they start growing older.

Social media can be leveraged to address one of the most common perceptions which many consumers share about the insurance industry, i.e. of being devoid of emotions. Moreover, insurance companies which typically come into action during a time of distress can increase its touch-points with consumers through social media during their happier times. By doing so, they can create a more cheerful perception of the brand in the mind of the consumer. Let’s focus on a couple of areas where we think that social media can make a positive impact on the industry.

Build trust with your consumers showing that you care
One of the most important areas where insurers can leverage the social media is for building trust with its potential customers. Every organization feels the necessity to build a strong bond of trust with its consumers so that they remain loyal and potentially become brand advocates.

In case of insurers, trust is perhaps the most important element because of the very nature of its business. Social networking media provides an ideal platform where the insurers can show that they care for their customers without being intrusive. Social media users do not like to be treated as buyers, but they do not mind if these organizations provide them the right tools, suggestions and necessary warnings about hazardous events.

Auto insurance companies are providing safety tips, impending storm warnings, best practices during driving through twitter, YouTube and Facebook to establish themselves as credible brands and potentially reduce or avoid claims. Similarly, life and health insurance organizations are providing necessary advice on healthy habits, early detection of dangerous diseases and other healthy living tips to customers. Highlighting corporate social responsibility initiatives undertaken by insurers also generates positive vibes about the company.

Keeping an interesting conversation going during happier times
By the very nature of its business, the traditional touch point of insurance agencies with its consumers has been when consumers go through stress. This is not in a very positive frame of mind. Perhaps, because of this, among a large majority of people, a wrong perception has developed where they view insurers and insurance agents as people devoid of emotions.

Social media provides a golden opportunity to change this perception. Insurance companies can change this by maintaining an interesting conversation in social networks and be a part of their lives during happier times. Adding some fun or amusement to these conversations can help in engaging the younger population who frequent social media and are potential customers for insurance companies in the coming future. With an active social media presence, insurers can generate a positive vibe and create a buzz around their products for the younger generation. I would love to know your thoughts on this. Please feel free to add comments.

Avishek Mukhopadhyay

Avishek Mukhopadhyay is a Senior Consultant with the Digital Business and Consulting group. He has over nine years of experience and passionately follows the latest developments in the digital, mobile and social media space. His interests lie in understanding consumer behavior in the digital world and creating services and solutions which can impact their lives positively. A consultant by profession, he loves to work with clients to solve their customer's day to day problems leveraging the digital medium. Avishek holds an MBA from IIM Indore, India and Bachelors in Electrical Engineering from NIT Durgapur, India. Avishek is a keen follower of equity markets and loves to spend his free time doing technical analysis of equities.

  • Tulika Mukherjee

    This was quite a revelation. a generalistic view which gave a good direction on how i can better my social media marketing.

  • Internet marketing Calgary

    Tulika like it. this mostly points of post is going in right direction for upcomming social media industry. thkx for this

  • General contractors insurance

    Valuable information and excellent post.I would like to thank you for sharing your thoughts and time into the stuff you post!!