Are Insurers Really Embracing Social Media?

In this report Celent gives an overview of social media use by Latin American insurers. The report also provides insight into social media penetration, trends, and priorities for the insurance industry.

Social media is changing the way consumers and companies interact, and a well-managed strategy can change how companies understand their market. Consumers perceive that they are interacting with a real person, someone who answers as if they were listening. More importantly, they find in social media a direct, better, and faster way to communicate.

Insurers have a great opportunity to exploit some advantages of social media in order to integrate various internal processes like underwriting, claims, recruiting, product management, consumer service, marketing, and sales. They also have a direct link to a large and more responsive audience.

“The new generations of consumers are more demanding, are more eager for information, and want things as soon as possible,” says Luis Chipana, an analyst with Celent’s Insurance practice and coauthor of the report. “Social media is opening the door to a young population that was born in the social media era and has it in its DNA. Insurers must understand this behavior so that they can speak the same language, even though it may seem too informal at times.”

“Social media is still a question mark for insurers in terms of revenue,” says Juan Mazzini, a senior analyst with Celent’s Insurance practice and coauthor of the report. “However, many top insurers are already participating. It is just a matter of time until insurers align processes and available technology to unfold the value of social media.”

This 34-page report contains 26 figures and three tables.