“Social media just isn’t there with their customers — at least not yet.”
Columnist Ara Trembly wrote recently that several insurance executives at this year’s ACORD LOMA Insurance Systems Forum expressed this same idea. I have heard similar statements as well, and though I do not question their sincerity, I do question their reasoning.
The social media adopters such as GEICO, USAA, Progressive, Liberty Mutual, Westfield and PEMCO are not just going after those younger insurance buyers who would not be caught without their smartphones and Facebook pages. These companies are also creating new prospects among older buyers by using social media in imaginative, useful ways to reach them. They are enabling their agents to expand their reach and engaging buyers with entertaining, educational content and mobile applications that set them apart from their competition.
Insurers who believe they can wait until their policyholders and prospects ask for social media engagement are in for a surprise. The younger buyers won’t demand engagement from a company — they will just move to a company that does. Some older, less tech-savvy buyers may be content for now without using social media — but some will also be lured away when they discover how an insurer can deliver more value by using it. In this soft market, no insurer can afford to ignore such a powerful tool.