- Defining strategic objectives that are dependent not only on internal but external data,
- Defining a referential or a group of topics, relevant social media platforms as well as a geographic and language scope to be considered for the analysis,
- Filtering and analyzing social media data regularly (real time, daily, monthly but it is generally a continuous process)
- Implementing an action plan leveraging findings derived from the data analysis to achieve the strategic objectives initially defined.
- How does an insurer reduce fraud, manage risk, decrease losses, minimize customer acquisition expense, and lower processing costs all at the same time? Join Sebastian Herfurth, founder and co-CEO of Friendsurance as he explains how his company is using social collaboration to turn the traditional insurance model on its ear and accomplish all these goals simultaneously. His presentation details the mechanisms that allow their customers use social networks to agree to “cover” each other if there is a loss.
- Don Montanaro, CEO of TradeKing Group, will describe how their focus on social networking immediately differentiated their firm from the 600-pound gorillas in the online brokerage industry by providing a safe, collaborative environment for investors to interact with peers and with the company itself. He will share examples of how TradeKing operationalizes social. Working closely with securities industry regulators to leverage social’s power beyond marketing, they have built industry leadership in key business functions like customer service.
- With the increasing need to innovate and change the way business is being done, companies continue to struggle with tapping the skill and knowledge of their employees to identify ways to transform the business. Everyone recognizes what a valuable resource associates can be, but it is very difficult to collect and refine the “next great thing”. Chubb & Son uses social technology to build innovation as a part of the day-to-day, natural activity stream of all of their employees. Jon Bidwell, SVP and Chief Innovation Officer, will describe the social platform that reaches directly to front line support staff and interacts directly with agents and customers to engage them in the product development and feedback process. Their lessons learned are surprising and insightful.
Which U. S. P&C insurance company will be the first to use a social network as a platform to transact insurance?
Part of the hype involved with the Facebook IPO this week is the vision of its founder to establish it as a platform for people to use when interacting on the internet. To me, this means not simply linking from the S.N. to another site, but to actually complete commercial transactions on the social network itself. For insurance, this would have a minimum benefit of avoiding tedious data entry of demographic information that the network already knows about you, age, sex, address, etc.
If you don’t think transacting insurance on a site other than that of the writing company will happen, you can stop reading now — you won’t be interested in the rest of this post. If, however, you are game to consider that a company will try this, read on and get ready to post a comment and make your pov known.
What would be the characteristics of the first U.S. P&C insurance company to use a social site as a platform for its business? Here are some considerations:
Product – Will be one of the commoditized, less differentiated products such as personal automobile, motorcycle, or dwelling: In these lines of business, price and service separate the offerings. Being able to ease the process of obtaining and maintaining insurance will be a driver.
Segment – Likely youthful: The companies first attracted to a S.N. platform will be those with prospects who are most comfortable with the environment, aggravated by traditional insurance distribution and less concerned about personal privacy.
Channel – Direct: As this new way of doing business will involve first-mover risks, it is likely that companies with intermediated distribution will pass on using the platform in the beginning. Upsetting their existing agents with a direct social network approach will be too much to bear.
Culture – Innovative: There will need to be some match between the value system of the insurer and that of the social network company. Stepping into this unknown territory will require that both parties are comfortable with their partner. Thus, insurers which have a reputation for being more innovative will be more likely to reach acceptable terms with the platform provider. Since this will probably be either Google or Facebook, the insurer with the vibe closest to “do no harm” or “hacking” will likely prevail.
Size — Not necessarily the largest: I do not think that the first S.N. insurer will need to be a billion+ organization, but I am sure that the network provider will demand some fairly steep rent and this will restrict the number of insurers able to pay the freight.
Technology – Probably not a barrier: The investment of many insurers in core system renewal should position most of them to take advantage of the open standards that a S.N. is built on.
Regulator view – The wildcard: The most likely insurer, in my view, is one that has a good reputation with the regulators and a decent reputation at addressing their concerns in past market conduct reviews and inquiries. As the response of regulation to this new way of doing business is such an unknown, the company willing to take this step will be confident in its ability to respond to its overseers.
Given these parameters, does anyone come to your mind? In days past, I would have identified the company with the pink-haired lady mascot as a leading possibility, but its recent purchase takes them off the table. It also could be one of the specialty auto insurers targeting the youthful driver market as well.
A recent conversation with a concerned aunt reminded me how location-aware and enabled our world has become. My aunt was worried that her teenage children were being a little too forthcoming about family movements on the social network sites. She knew her daughter had posted about an impending family holiday. She’s right to be worried.
Legal & General’s latest digital criminal report highlights once more the dangerous of the proliferation of location-aware services like Gowalla, Foursquare and Facebook places. The report notes that the younger you are, the more likely you are to give information away concerning your whereabouts, with nearly six out of ten 16-24 year old sharing their holiday plans – which could be a cause for concern for parents, and certainly my aunt.
For those with malevolent intentions, the process is surprisingly simple. Few people are aware that anyone can purchase private address information, which is based on the electoral role. Armed with this data, notifications of when people are away, photos of housewarming parties showing contents of house, and pictures of animals indicating the likelihood of cat flaps or open windows, the burglar has a pretty easy job. This poses an increasing claims threat for insurers and an opportunity in educating consumers.
Another side of location-aware technology is more benign. Advertisers can target consumers by location using services such as Ji-Wire , which launched in the UK last month. Its deal with BT Openzone means it is has access to users of Wi-Fi networks in more than 4,000 ‘hotspots’ – and can target them with localised ads when they log on. One of the first advertisers is insurance firm Hiscox, who signed up this month and will integrate its digital media campaign with local poster activity. Using location aware services can open a whole new world of advertising for insurers in a digital media world (See Celent’s digital media report)
Whether on the defensive or the offensive, the time has arrived to understand the opportunities and threats of location aware services in new media.
Our event in London– New Rules of Engagement: How Digital and Social Innovation Challenge the Insurer Business Model — will cover this topic in more details. We hope to see you there.