In this second of five “First Monday” episodes, A.M. Best Vice President Stephen Irwin and Senior Financial Analyst Joan Sullivan speak about a survey A.M. Best conducted where two-thirds of respondents from the insurance industry expressed the belief that their company’s social media strategy needs improvement.
The remaining “First Monday’ episodes for June 2015 will focus on year-end 2014 results of the U.S. life/health industry; an interview with Manuel Calderón, A.M. Best’s new managing director in Mexico and the possible impact on disability insurers should a projected insolvency of the U.S. Social Security Disability Fund occur. “First Monday” is A.M. Best’s monthly program featuring commentary by the company’s leading analysts.
Social media has altered the landscape of personal and professional communications. Companies in all industries are adapting their platforms to include Facebook, LinkedIn and Twitter, and the insurance industry is no exception. “Social media is an inexpensive way to market the brand, the product and reach customers, since traditional marketing is not as effective,” said Sullivan. “Additionally, the survey showed that 55% of insurance companies are now using social media.”
Moreover, with the changing demographics focus (from baby boomers to millennials) the insurance industry is looking for ways to tap into that marketplace.
“With millennials being not only the largest users of social media, but also presently the largest living generation, insurance companies are concentrating their branding, marketing and advertising to reach that market,” added Irwin.
Source: A.M. Best Company