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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”
Demographics
Distribution Models
Dialogue
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
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
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
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
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
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
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
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
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
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
