Social Media and the insurance industry

social media insuranceThere are many opportunites for the insurance industry in social media. Afterall, it’s the ultimate experience good – you can’t judge the quality of what you have purchased until you claim, potentially years after payment.

As a result, it’s well suited to storytelling and sharing of experiences. Ratings and reviews have the potential to be an especially powerful tool for the insurance industry.

But social media marketing isn’t the only game in town. The insurance industry has another opportunity – using social media as part of the actuarial process. Insurance firms prefer to cover people who are less likely to claim. Social media may provide ways of helping to qualify in or out some people.

Have a look at Please Rob Me. A site that aggregates people’s check-ins on Foursquare and their GoogleBuzz locations to tell you who is away from home. Right now.

It is just a bit of fun, but the site makes an important point and should provide food for thought for armies of actuaries up and down the land.

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PS for an insurance-related social media case study, here’s an example of a research community that we built for a client