How Insurers can Leverage Social Media

By Insurance CIO Outlook | Monday, June 15, 2020

Insurance underwriters can utilize social media to determine risks as well as premiums for potential customers.

FREMONT, CA: Social media has structured the way people communicate with the world. While users may view social platforms as a means of communication, businesses are eyeing to extract invaluable data insights from them. The insurance sector is not different in the above aspect. For insurance firms, social platforms offer an opportunity to utilize data from social feeds to save money as well as time. Underwriting is one aspect of insurance that can potentially utilize the online feeds up to the hilt.             

Traditionally insurers have depended on questionnaires and physical exams to determine premiums as well as underwriting results. This practice was costly, as well as time-consuming. However, the emergence of social media platforms offers an opportunity for insurers to leverage this alternative source of data for underwriting. For instance, social media feeds such as a customer’s social media account containing health-conscious feed implies a good business prospect. Underwriters can capitalize on the above information to determine the premium for such a customer. With the advancement in data analytics technology, insurance firms are gaining a better view of the latest trends. Such trends can certainly influence the underwriting aspect of insurance.

Top Underwriting Solution CompaniesThe powerful algorithms and disruptive technologies, such as artificial intelligence (AI), can offer insurers a personalized view into the lives of their targeted audience. Such technologies can refine the results for the underwriters and assist them in determining risks as well as the premium amount for a particular customer. Such results can assist the underwriters with a number of tasks such as examining insurance proposals, gathering background information and assessment of risks, and preparing insurance policy terms and conditions. 

The prospect of utilizing social media feeds for insurance underwriting seems lucrative. However, insurers must ensure that they conform to data compliance and privacy policies while utilizing social platforms for business.

See Also: Top Insurance Technology Solution Companies

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