Insurance 2015: The Social Impact

2. IASA 86TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW The Social Impact: Insurance 2015 Session # 375 3. The Social Impact: Insurance 2015 Jennifer Overhulse, Principal Owner St. Nick Media Services Jennifer Overhulse is the principal owner and founder of St. Nick Media Services. She is a writer, as well as a marketing and public relations expert, with more than 20 years of journalism background and expertise. As principal owner of St. Nick Media Services, Jennifer works with companies to tailor marketing, PR, advertising and sales messages/efforts for specific target audience groups. She has recently published expert articles in leading trade publications. Additionally, Jennifer is a member of the Insurance Marketing Communications Association (IMCA), the Insurance Accounting & Systems Association (IASA) and is editor of IASAs Interpreter. About St. Nick Media Services Founded in 1998, St. Nick Media Services is a top-tier public relations, marketing and media services firm consulting to companies of all sizes throughout the United States and Canada. St. Nick Media Services partners closely with clients to provide individualized, strategic support that helps achieve business, marketing and sales goals. By listening carefully to client objectives, setting realistic project goals and working diligently to achieve and exceed them, St. Nick Media Services delivers a strong return on investment in the areas of Public Relations, ROI Marketing, Editorial Services, Brand Development and Social Media Strategy. 4. The Social Impact: Insurance 2015 Ken Zieden-Weber, SVP & COO Xchange Benefits LLC Ken Zieden-Weber is an insurance and reinsurance industry veteran with 25- years of finance experience. He has worked in almost every facet of the insurance and reinsurance industry, and has been associated with insurers, reinsurers intermediaries, managing general agencies (MGAs), and consultancies. His financial experience includes external financial reporting (IFRS, US GAAP, Statutory, and SEC reporting); operational accounting; financial modeling, planning and budgeting; rating agency responsibilities; audit management; tax; and treasury and investment accounting. His other experiences include claims management and TPA review; underwriting; process re-engineering; reinsurance management (including reinsurance accounting and claims, collection of reinsurance recoverable, collateral, insolvencies, commutations, program management and development, ceded underwriting and placement); due diligence reviews; IT system design and conversion; and actuarial analysis. Zieden-Weber is a graduate of Boston Universitys College of Arts and Science, where he received a Bachelors of Arts degree in Economics. He also holds a Masters of Business Administration degree in Accounting. He received this degree from Baruch College. Zieden- Weber is also a licensed Certified Public Accountant (CPA) in the state of Delaware. 5. Power is a lot like real estate. Its all about location, location, location. The closer you are to the source, the higher your property value. The Social Impact: Insurance 2015 6. 6 Today, more than 1/3 of all married couples in the U.S. meet online. 7. Canadians spend more time online than anybody else in the world an average of 45 hours per month! The Social Impact: Insurance 2015 8. More than 50% of the worlds population is under 30 years old. Which channel reaches them best? 9. Marshall McLuhan says, The medium is the message. 10. 757 million active users as of December 2013 Over 1 BILLION monthly mobile active users as of March 2014 Average user: Professional woman in her mid 40s with at least a college degree and more than 130 friends In a single year, FB users listened to 62.6 million songs on the site, equating to more than 210,000 YEARS of listening time Lost more than 10% of audience between ages 16 and 34 in 2013 555 million active users as of December 2013 Only 241 million monthly active users Approximately 500 million tweets are sent each day Average user: Woman under 30 years old with no professional or college degree 250 million active users as of March 2014 Average user: Upwardly mobile men and women over 40 with college and/or graduate degrees who use social media for professional reasons More than 277% more effective than FB or Twitter for lead gen The Social Impact: Insurance 2015 11. 50 million active users upload more than 5 million photos each day These photos generate more than 575 likes and 81 comments every SECOND Over 6 months, average daily Instagram visitor numbers increased by 724% 375 million active monthly users More than 925,000 NEW users on G+ each DAY Average user: Single, college-age student, typically male, pursuing degrees in engineering, computer science, or graphic design 70 million active users Average user: Woman with some college between the ages of 25 and 44 who lives in the Midwest and loves cooking and crafting But the average Pinterest user spends approximately 1 HOUR AND 17 MINUTES on the site PER VISIT The Social Impact: Insurance 2015 12. Nearly 4.5 million hours of video uploaded each month Viewers are watching more than 6 BILLION hours of home videos, educational tutorials, TV shows, comedy routines and CAT VIDEOS each month YouTube now reaches more 18-34 year olds than ANY cable network Launched in January of 2013, Vine now has more than 40 million active users 6 second loopable videos Record set on 4/15/13 when more than 19,667 vines were uploaded during the Boston Marathon bombing tragedy Launched in September of 2011 by Evan Spiegel Spiegel turned down a $3 BILLION buyout offer from Facebook founder Mark Zuckerberg in February of 2013 Approximately 30 million active US users 70% are woman and 32% are teens (13-17) on mobile phones The Social Impact: Insurance 2015 13. Insurance Social Media Sites Old Sexy Insurance New Agency Tsunami Market Luminary Magazines Insurance & Technology Insurance Networking News ITA Pro Magazine The Social Impact: Insurance 2015 14. 48% of social media users check Facebook or Twitter if they wake up in the middle of the night 23% of iPhone owners primarily get their morning news from Twitter and Facebook 49% of social media users under 25 dont mind being interrupted for an electronic message during a meal Source: Retrevo survey via Mashable 6% of social media users over the age of 25 will even acknowledge messages during sex The Social Impact: Insurance 2015 15. The Social Impact: Insurance 2015 16. Social media is like teen sex. Everyone wants to do it. Nobody knows how. When its finally done, there is surprise its not better. Avinash Kaushik Analytics Evangelist The Social Impact: Insurance 2015 17. Democracy is so overrated. The Social Impact: Insurance 2015 18. If you legalize ityou can regulate it! The Social Impact: Insurance 2015 19. The Social Impact: Insurance 2015 20. Name Sex Relationship Status Family Members Hobbies/Interests Address Phone Number Zodiacal Sign Favorite Movies Books Youve Read Vacation Spots You Love Kids Favorite Sports Teams Potential Medical Conditions Past Injuries/Illnesses Family Medical History Birthday Buying Habits Elementary School Middle School High School College(s) You Attended Degrees You Hold Professional Designations Association/Club Affiliations Friends Names Hair Color Eye Color Favorite Color Age Political Affiliation Sexual Orientation Religion Pets Names & Numbers Medical Alerts Things You Collect Talents Current Employer Job History Criminal Record Restaurants You Like Foods You Hate Preferred Airline People You Recommend Pet Peeves Superstitions Allergies Car You Drive Social Data may include intimate details about a persons life, including: And, most of this information is shared willingly. What insurance applications do you see for this information? The Social Impact: Insurance 2015 21. The Social Impact: Insurance 2015 22. Did you know, a recent study by the University of Cambridge found that Facebook likes can accurately predict: Ethnicity 95% of the time Gender 93% of the time Sexual orientation (males) 88% of the time Sexual orientation (females) 75% of the time Apparently High intelligence indicators include likes for: Thunderstorms The Colbert Report Science Curly Fries And low intelligence indicators include likes for: Sephora Harley Davidson Lady Antebellum Really?????? 23. The Social Impact: Insurance 2015 24. Source: Ivans Carrier Study The Social Impact: Insurance 2015 25. Theres no better way to overpower a trickle of doubt than with a flood of naked truth. The Social Impact: Insurance 2015 26. The Social Impact: Insurance 2015 PERCEPTION IS REALITY! AND, UNFORTUNATELY, EXECUTIVES PERCEIVE SOCIAL MEDIA AS FRIVOLOUS. 27. The Social Impact: Insurance 2015 28. The Social Impact: Insurance 2015 29. The Social Impact: Insurance 2015 30. The Social Impact: Insurance 2015 31. Only 25% of Facebook users take advantage of the sites built in privacy settings. And more than 1 MILLION sites connect to Facebook. 32. Demonstrating how social can reduce or eliminate RISK is a highly-persuasive factor for executives. The Social Impact: Insurance 2015 33. Companies must adapt. The Social Impact: Insurance 2015 34. The Social Impact: Insurance 2015 35. Moving Beyond Marketing Insurers remain cautious about social media Many implementing internal as opposed to external-facing social media projects Yammer, Chatter, Huddle, Jive Goals include: collaboration, faster product testing, better project management, and improved transparency Pros Improved rating and underwriting Provide insight into specific LOBs Suggest direction for new products Reduce customer support costs Increased efficiency of claims investigations and fraud detection Cons Regulatory/legislative concerns Privacy exposures Unwanted friends/followers Negative feedback/comments You need tools to take advantage of social media data The business case is different for every company, but getting an ROI is crucial. As you consider how to better utilize the social data available, its important to look at the pros and cons The Social Impact: Insurance 2015 36. Platform Objective Metric Potential Goal Facebook Build Relationships Avg. # of Comments/Posts 10 New Shares/Comments per Week LinkedIn Highlight Subject Matter Expertise Avg. # of Answers 5 New Recommendations Twitter Become a Resource Avg. # of New Followers/Posts 20 New Retweets/Direct Messages Google+ Customer Service Avg. # of Hangouts per Week 3 Pt. Increase in Klout or NetPromoter Score YouTube Promote Corporate Personality Avg. # of Views/Comments 2% Increase in Views per Week Pinterest General Awareness Avg. # of Likes/Pins 10% Increase in Pins per Week SlideShare Sales/Lead Generation Avg. # of Views/Downloads 25 Downloads per PPT Blog Thought Leadership Avg. # of Unique Visitors per Month 100 Comments per Post Social Media Metrics Matrix The Social Impact: Insurance 2015 37. Use Case Chubb Project: Rollout of an enterprise-wide social business platform Goals: Cultivate employee-generated ideas Foster collaboration Spotlight internal experts Facilitate research Results: Reduced new product development time Increased knowledge sharing capabilities through searchable content Faster problem identification Better ability to recognize and reward employee contributions The Social Impact: Insurance 2015 38. The Social Impact: Insurance 2015 39. Dude, Wheres My Flying Car? The Social Impact: Insurance 2015 40. New uses for social media are being discovered every day Market Research/Focus Groups Brand Recognition Product Announcements Promotions/Contests Customer Service Channel Tech Support Human Resources/Background Checks Predictive Analytics Recruiting What does this mean for the insurance industry in the near-term future? The Social Impact: Insurance 2015 41. Distribution Channels Consumer demand driving development of new distribution channels: Direct-to-consumer portals Mobile access via apps on smartphones and tablets For now, independent agents are still the largest distribution channel for most insurers. Independent agents use social media for: Community involvement Lead generation Product Announcements Promotions/Contests Peer-to-Peer Networking SALES!!!!!!!!!!!!!!!!! In five years, most personal lines insurance will be researched, quoted and bound onlinemaking agents obsolete. The Social Impact: Insurance 2015 42. Underwriting & Product Development Gen X and Gen Y consumers are more willing to share personal information to gain an advantage (competitive, monetary, convenience, etc.): Trend away from group coverages and risk pools Usage-based insurance Telematics Discounts for good behavior/healthy lifestyle Willingness to provide feedback/expertise ONLY if they get something in return instant focus group In five years, every one of you in this room will have a Certified Risk Profile that will determine how your insurance policies are priced. The Social Impact: Insurance 2015 43. Claims and Human Resources Social media is an insurers best predictive analytics tool. Insurance companies are beginning to use social data for: Claims Reduce Loss Costs Fraud Detection Pattern Prediction Human Resources Recruiting Pre-Employment Screening Background Checks In five years, more than 75% of fraudulent claims will be resolved through the use of publicly-shared social data. 53% of job applications and resumes contain falsifications, and 7 out of 10 college students admit they would lie on a job application to get a job they really want One of five U.S. adults about 45 million people say it's acceptable to defraud insurance companies under certain circumstances. The Social Impact: Insurance 2015 44. Questions????? Jennifer Overhulse Principal Owner St. Nick Media Services Email: [email protected] Ken Zieden-Weber SVP & COO Xchange Benefits LLC Email: [email protected] The Social Impact: Insurance 2015 45. 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