Now and When: Why Social Media Matters to the Insurance Industry

Social media is seen as a risk management obstacle

Focus is on the risk of being ON social media This ignores the risk of NOT being on social media

E&Y: Insurers are lagging behind the digital curve

47% have no single cohesive digital strategy New entrants and digital leaders will exploit this failing

“Failure to embrace digital exposes the industry to considerable risk”

© Amy Gibbs 2014

Demographics

Distribution Models

Dialogue

© Amy Gibbs 2014

Gen Y value transparency, trust, technology

Don’t like a hard sell and are advertising savvy

Want to make their own, self-solved, decisions Will check online reviews, will “google it”

Don’t want the cheapest - want the easiest, clearest

and quickest

No social = No transparency = No trust

Bad website = Bad business © Amy Gibbs 2014

Distribution models are being challenged

After 132 years, Kodak declared bankruptcy in 2012

Despite inventing it, they failed to adapt to digital

Allowed others to bypass their distribution networks Cameras

Photos

The music industry also missed the digital boat, as did Nokia, Blackberry, Blockbuster, Borders…

© Amy Gibbs 2014

PwC predicts that by 2020: Balance of trust will shift from advisors to online communities

Social networks will become group insurance channels

Social networks will become pooling mechanisms

Insurers will go from being product manufacturers to administrative service providers

Peer to peer / social insurance is already here

© Amy Gibbs 2014

Goal of bridging the trust gap by making insurance “social, fair and reasonable again”

Combines social networking with established insurers Select large claims coverage from comparison list

Connect to people and pool money for small claims

More connections = higher claims support

Up to 50% of premiums back each year

Better risk pools, reduced fraud, 40% fewer damage events, less sales, reduced claims handling costs

© Amy Gibbs 2014

Peer-to-peer networked insurance group

No premiums, insurers & insured have a stake

Each group sets its own conditions

Payout is split by the group if the majority approve claim

Amount paid out is proportional to what’s put in If you don’t pay you’re ejected from the group

However… Peercover is no more

© Amy Gibbs 2014

Guiding Gen Y using technology and engagement

Everyday goal to make insurance simple, intuitive & human

Want to be a health services provider, not only an

insurer

24/7 doctors calls, free doctors visits, free generic prescription drugs, ‘find a doctor’ interactive map

Doesn’t pander to Gen Y, talks to them in their spaces

© Amy Gibbs 2014

People grouping together online to cater for niche insurance needs

Build their own group insurance with better coverage, dedicated policies and less expense

For example: Travel insurance for people with arthritis

Abyssinian cat insurance

Over 50s iPad insurance

Nintendo insurance

© Amy Gibbs 2014

The Australian state police forces are some of the best social media users in the world

Tell positive stories, correct rumours, provide facts quickly and are FUNNY

Create brand new touchpoints with the community

Changed the conversation Public perception has been affected

People now help THEM

They own and direct the conversation

© Amy Gibbs 2014

MetLife - #WhoILiveFor campaign Positive spin on life insurance

Focus is not on sales but on stories

New York Life Establishing touchpoints outside the sales cycle

Listening to customers

Medibank, BUPA and AAMI Informing, educating, entertaining

© Amy Gibbs 2014

If insurers want to retain customers and acquire new ones, there is no choice but to adapt

Be part of the change. Innovate. Now.

It takes a year to build up a social media community

Hire a professional social media or digital manager

Change the internal conversation, ask the hard questions, invest the time and money

Don’t be Kodak

© Amy Gibbs 2014

Now and When: Why Social Media Matters to the Insurance Industry

Social Media

Transcript of Now and When: Why Social Media Matters to the Insurance Industry