According to NetProspex’s Fall 2010 Social Business Report, the insurance industry ranks in the top 50 industries using social media. Sounds impressive until you see that the actual rank is #42 – not surprising that an industry inherently conservative and all about managing risks would rank at the bottom of the list. The good news is that industry use of social media outlets (notably Facebook, Twitter, YouTube, and LinkedIn) is growing as insurers and producers are using these sites as new ways to reach and interact with customers. Industry trade publications “tweet” headlines of articles, and regulators are using Twitter to communicate with insurers and consumers. For instance, the New York Department of Insurance tweets violations, new and proposed regulations, and new Office of the General Counsel opinions.
How can social media use benefit the industry? It can help keep members informed of top insurance news, connect with customers and answer questions, and even help uncover fraudulent insurance activities. Investigators are using Facebook as part of their arsenal for uncovering false claims made to insurance companies. A recent New York State Insurance Department tweet linked to its September 13, 2010 news release revealing that “Facebook Post Leads to Fraud Conviction” – a workers’ compensation benefit recipient bragged about her salary and full-time job at an apartment complex on her Facebook page.
As a compliance professional, I use Twitter to keep informed of what’s happening in the industry. I like the briefness of a tweet – it’s only composed of up to 140 characters; I can quickly scan the tweets to find anything that may be worth clicking on and read the full link. It helps me to weed out “the noise”. DOIs are jumping on the Twitter bandwagon: Michigan (@MIOFIR), North Dakota (@NDID), Utah (@uidnews), Louisiana (@LAInsuranceDept), Illinois (@InsuranceIL), Idaho (@IdahoDOI), California (@CDInews), and New York (@NYSInsuranceDep). Also, I would be remiss if I didn’t mention following Compliance Corner @WKFSSCC!!!
What are your thoughts on using social media? Does your company have a Facebook fan page or Twitter account?
