A recent Moody’s survey of US life insurers and P&C insurers revealed that 86% of them expect to increase their social media insurance presence in 2015.
Following a recent LIMRA survey confirming that almost every US life insurance firm has a social media program, Moody’s released the results of their own survey on social media insurance.
The survey of 66 rated U.S. insurers (42 life and 24 P&C) found that 86% plan to grow their social media use within the next year.
- Most insurance companies using social media do not use it to talk about insurance
- None of the companies believe social media is very effective in increasing direct sales
- Companies’ biggest reason for using social media is brand promotion and their biggest concern is legal and regulatory issues
- Insurers also use social media for marketing, whether between wholesalers and financial advisors, or agents communicating with existing clients
- There is very little difference between how life and P&C insurers use social media
Scott Robinson – SVP at Moody’s: “The goal for insurers across the major social media sites is the same: to tap into a pre-defined network and use it, at very little cost, to extend a brand’s strength and reach.”
If any indication from the financial services industry of budget increase for social media is encouraging, it’s important banks and insurance firms don’t think too inwardly and too tactically.