By Stuart Rose, Global Insurance Marketing Director, SAS
Cary, N.C. (Nov. 14, 2013) – The final article in my mini-series on life insurance covers the growing trend of social media usage within insurance.
A challenge for many insurance companies is how to find a cost-effective method to sell life insurance and annuity products to an underpenetrated market, Generation Y or Millenials. That is, consumers aged between 18 and 33 years old. Due to high acquisition costs, many agents find it unprofitable to sell to this particular demographic. However, one method that is proving successful is the usage of social media, since this demographic has embraced this medium.
There is still a lot of hype and buzz associated with social media, and without a doubt it is changing society and business across the globe. While it has not transformed the insurance industry yet, many in the industry see great potential to capitalize on the opportunities that the social media universe presents. It affords insurers new ways to identify prospects, offers novel ways to interact with customers and business partners, affects corporate image and reputation, and provides new ways for employees to collaborate.
One example to engage Generation Y prospects and customers via social media is the concept of ‘gamification.’ Several life insurance companies are releasing games focusing on life insurance education, most notably AXA Equitable’s “pass it on.” A player travels cross-country facing financial choices, managing expenses and making decisions about life insurance. This initiative not only provides helpful information about life insurance products and services to the prospect, but in many cases the insurer obtains valuable demographic data about the customers participating. To understand more about the potential opportunities social media presents for insurance companies download the white paper “The business value of social media in insurance.”
It’s reported that the first example of modern life insurance was issued on January 1536. Since then the life insurance industry has changed considerably and grown into a $2.5 trillion industry. Today life insurance companies are suffering a number of challenges such as continuing low interest rates, volatile equity markets and an uncertain regulatory environment. While the life insurance industry has faced many obstacles in the last 500 years, to continue to survive and thrive, it is important that they embrace the value of data and analytics.
About the Author
Stuart Rose is global insurance marketing director at Cary, N.C.-based SAS. Rose, a 25-year veteran of the insurance industry, began his career as an actuary. He has worked for a global insurance carrier in both its life and property divisions and has worked for several software vendors, where he was responsible for marketing, product management, and application development.
Stuart is co-author of the book Executive Guide to Solvency II and frequently speaks at insurance conferences.
SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions, SAS helps customers at more than 60,000 sites improve performance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the world The Power to Know®.
(Reposted with permission.)Tags: Life Insurance, SAS, social media