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Report: Social media changes the insurance business
By Insure.com staff

Although property and casualty insurance companies see the marketing potential of social media, many have yet to focus on its possibilities for changing how claims are processed, according to a new report by AITE Group, a Boston-headquartered financial research and consulting firm.

The report is based on third-quarter interviews with 15 North American insurance industry executives.

AITE group senior analyst and report author Stephen Applebaum said in a press statement that social media has fundamentally changed the nature of business-to-consumer and interpersonal relationships. Because insurance "is at its core a relationship business," social media also has "fundamentally changed the P&C insurance business," according to Applebaum.

Almost two-thirds of Internet-using adults use social networking sites, and almost all of Millenials--people in their late teens and 20s--do.

Consumers today are more influenced by friends and strangers through social media than by marketing and advertising campaigns or insurance agents, the report says. As a result, carriers cannot rely solely on insurance agents to identify consumers' product needs and expectations.

 

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