The firestorm over executive bonuses at American International Group earlier this year underscores the deep distrust everyday Americans harbor for financial services companies, even before the controversial AIG bailout by taxpayers. Insurers can tell themselves they are not affected by the AIG meltdown, but they are kidding themselves.
Social media are the rage — Facebook, Twitter , LinkedIn, YouTube and dozens of other sites that have sprung up almost seemingly overnight. But what does it all mean for insurers? The fact is, social media are powerful tools with which insurers can strengthen their brands and improve customer retention. However, while the monetary costs of entry may be low, there are hidden costs in the use of social media –in underestimating or misusing their enormous power and in not addressing the legal minefields they can create. Continue reading