Social media has tremendous potential within the P&C industry—particularly among millennials—but many carriers and agencies are ill prepared for the challenges and opportunities it presents.
Boston, October 18, 2011 – A new report from Aite Group examines the impact of social media within the North American property and casualty (P&C) insurance industry, including specific challenges and opportunities for underwriting, marketing, distribution, and claims. Based on Q3 2011 Aite Group interviews with 15 North American P&C industry executives, the report also describes several insurance-company programs that effectively leverage social media.
Social media is rapidly rendering traditional marketing paradigms obsolete among consumers, who are now more heavily influenced by friends and strangers than by marketing and advertising campaigns or insurance agents. Today, nearly two-thirds of Internet-using adults use social networking sites; among millennials, the next large and untapped market for the insurance industry, almost all use these tools. As social media continues to facilitate consumer disengagement from the traditional agency distribution model, carriers can no longer rely exclusively on insurance agents to identify the product needs and expectations of customers and prospects. While many P&C insurance carriers recognize social media’s marketing potential, many have yet to focus on its ability to revolutionize claims processing.
“It is said that insurance is at its core a relationship business,” says Stephen Applebaum, senior analyst with Aite Group and author of this report. “Since social media has fundamentally changed the nature of business-to-consumer and interpersonal relationships, it is fair to say that is has also fundamentally changed the P&C insurance business.”
This 20-page Impact Note contains four figures. Clients of Aite Group’s Property & Casualty Insurance service can download the report.