061211_unisg_fpv1_ww11_oracle
TRANSCRIPT
Forschungs-, Praxis- & Venture-Projekt 1Institut für Wirtschaftsinformatik, Fr. Prof. A. BackRaphael Schilling & Nguyen Tran
FPV 1 - Social Media in the Insurance Industry 1
in the Insurance Industry
This is a joint project with ORACLE and the HSG IWI
Harry Stehrenberger Prof. Dr. Andrea Back Nguyen Tran Raphael Schilling
VP, Global Business Unit Financial Services Oracle EMEA
Professor of Management with special IT, University of St. Gallen
Master Student of Information, Media and Technology Management, University of St. Gallen
Master Student of Information, Media and Technology Management, University of St. Gallen
[email protected] [email protected] [email protected] [email protected]
FPV 1 - Social Media in the Insurance Industry 2
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FPV 1 - Social Media in the Insurance Industry 3
IntroductionIntroduction
Insurance Social Media Maturity ModelInsurance Social Media Maturity Model
Market AnalysisMarket Analysis
Innovative Business ApplicationsInnovative Business Applications
Market PotentialMarket Potential
Strategic Options & ConclusionStrategic Options & Conclusion
IntroductionThree research areas helped to identify the potential value from social media in the insurance industry
FPV 1 - Social Media in the Insurance Industry 4
Identify the potential value from social media* for insurance companies in the costumer
relation**
Market overview Switzerland
International Best Practices
Strategic options and potential benefit for insurance companies
• The social media activities of the 10 largest Swiss personal and property insurance companies have been analyzed.
• Interviews with two Social Media
Managers of the insurance industry have been hold.
• Database research helped identifying international best practice examples.
• 45 mainly students have been questioned upon their opinion about social media activities of insurance companies.
• With regard to already existing models, industry specific maturity model has been developed.
*Social Media (SOM):„A group of Internet-based applications that build on the ideological and technological foundations of Web 2.0, which allows the creation and exchange of user-generated content.”(Andreas Kaplan and Michael Haenlein)
* * Customer RelationThe potential value of internal use of SOM has not been analyzed.
IntroductionInsurance companies should consider Social Media
FPV 1 - Social Media in the Insurance Industry 5
Changing customer behaviorWhen purchasing insurance services,
younger people are influenced by 64 % by online platforms
The Brand Science Institute 2009, N=1‘100
Other industries are actively using Social Media
Industries such as telecom and retail have embraced the capabilities of social media and
customer expectations are quickly growing into all sectors of financial services
National Underwriter, 2010
Getting known to the customerInsurers can use social media to gather information
about their customers and effectively conducttargeted marketing campaigns.
National Underwriter, 2010
Insurance companies can be innovative“Innovation doesn’t
come first in insurance, but itdoesn’t mean it doesn’t come.”
Julian Pelenur, Founder, ChiefTechnology Officer, FirstBest Systems
“The potential business value [of social media] for the insurance industry is moving beyond just sales and branding
to a stage where servicing benefits areequally important.”
Karen Furtado, SMA (strategic advisory)
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IntroductionIntroduction
Insurance Social Media Maturity ModelInsurance Social Media Maturity Model
Market AnalysisMarket Analysis
Innovative Business ApplicationsInnovative Business Applications
Market PotentialMarket Potential
Strategic Options & ConclusionStrategic Options & Conclusion
Maturity ModelThe insurance specific SOM Maturity Model gives insurance companies orientation and an outlook
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Why a new SOM Maturity Model?
Why a new SOM Maturity Model?
Adaption to insurance industry Benchmarking Development path
Adaption to insurance industry Benchmarking Development path
MethodologyMethodology
Normative derivation Comparison to other Social Media Maturity Models Challenged by Social Media insurance managers
Normative derivation Comparison to other Social Media Maturity Models Challenged by Social Media insurance managers
• http://www.rd2inc.com/blog/2008/10/social-media-maturity-model/** http://pr.typepad.com/pr_communications/2009/03/social-media-maturity-index-finding-social-media-engagement-leaders.html*** http://www.collectiveintellect.com/blog/wp-content/uploads/2011/03/CollectiveIntellect-GuidanceforEnterpriseSocialMaturity.pdf
Maturity ModelOur specific Insurance Social Media Maturity Model takes the customer perspective
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Listening
Informing
Interacting
Networking
Integrating
Not observable
Presence in various SOM channels Relevance of information Regular posts of information
Interaction platforms available (e.g. Facebook)
Response on customer comments Relevant content of interactions
Formal relationships with customers (fans or friends)
Company proactively approaches customers
Implementation of customer ideas Integration of SOM into offerings SOM is company wide integrated
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Our model
Listening
Not applicable
Participating Actively Engaging
Not applicable
Letting Go Propagating
Social Monitoring
Social Presence
Interacting
Not applicable
Integrating
Listening
Informing
Receive Feedback Problem &
Innovation Response
Networking
Acknowledgement & Demons. Action
Knowledge Management
RD 2 SOM Maturity Model*
Colletive Intellect SOM
Maturity Model***
SOM Maturity Index**
ExtractExtractReverse OrderReverse Order
Maturity ModelA cross section of EU insurance companies shows that even the leaders are interacting only at interaction level
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Listening
Informing
Interacting
Networking
Integrating
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0
Reverse OrderReverse Order
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FPV 1 - Social Media in the Insurance Industry 10
IntroductionIntroduction
Insurance Social Media Maturity ModelInsurance Social Media Maturity Model
Market AnalysisMarket Analysis
Innovative Business ApplicationsInnovative Business Applications
Market PotentialMarket Potential
Strategic Options & ConclusionStrategic Options & Conclusion
Market AnalysisWe used diffrent methods for analysing the Swiss and international market
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Market Method Key findings
Switzerland
10 largest Swiss personal and property insurances were analyzed by externally observing their activities in SOM by using parts of the POST method.
• Axa Winterthur, Mobiliar and Zurich are most progressive
• SOM mainly used for marketing activities
• No disruptive business model identified
International
Data-Base research •Data-Base: EBSCO, Google•Only English results•Keywords: Insurance AND Social Media OR Facebook OR Twitter OR Web 2.0•Published after Jan 2010
• Geico, Progressive, Allstate and Farmers as best practice
• Fast growing importance• Missing regulation implies risks• Changes in the ways of commication
with agents
Market AnalysisNo disruptive business model for social media could be identified in the Swiss insurance market
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FacebookFacebook TwitterTwitter YoutubeYoutube BlogBlog Mobile AppMobile App
Mainly used for marketing activities and rarely for costumer interaction
Axa Winterthur has most fans
Swiss Life has a personalized page
Mainly used for recruitment
Mostly no regular tweets
Mainly publication of commercials
Really some further product information, hints and information for perspective employees.
None of the observed companies has an own Blog.
Mobile Applications offer emergency support, claim handling and marketing activities
N/A
YesNo N= 10
YesNo N= 10
YesNo N= 10
YesNo N= 10
YesNo N= 10
International Best PracticesContests and online applications help to gain fans
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Description
Millions of Facebook users play FarmVille. Farmers Insurance Group took advantage of this trend offering free protection against the devastation of virtual crop loss.
Axa Winterthur could impressively increase the amount of fans by offering tickets for a popular concert.
Millions of Facebook users play FarmVille. Farmers Insurance Group took advantage of this trend offering free protection against the devastation of virtual crop loss.
Axa Winterthur could impressively increase the amount of fans by offering tickets for a popular concert.
Customer Value
Gaining information about company in a informal way
Gaining information about company in a informal way
International Best PracticesSocial Media can be used for dynamic user help
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Description
A mobile app, allowing instant connection of individuals with similar user profiles and access to health info, recipes and wellness challenges
CaféWell allows users to control the degree to which their identity is shared
CaféWell rewards active users with profile badges, and prizes
A mobile app, allowing instant connection of individuals with similar user profiles and access to health info, recipes and wellness challenges
CaféWell allows users to control the degree to which their identity is shared
CaféWell rewards active users with profile badges, and prizes
Customer Value
Fast response on personal questions by professionals
Sharing feelings No doctor expenses
Fast response on personal questions by professionals
Sharing feelings No doctor expenses
International Best PracticesPeer to Peer networks lower costs for both sides
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Description
Customers build ind. Insurance collectives For every friend added to someone’s personal
network, the customer gets a slight price reduction (bonus)
If one of the added friends has a claim, this bonus reduction is reduced accordingly
Customers build ind. Insurance collectives For every friend added to someone’s personal
network, the customer gets a slight price reduction (bonus)
If one of the added friends has a claim, this bonus reduction is reduced accordingly
Customer Value
Lower insurance fees Better control of the risks the own insurance has to
cover
Lower insurance fees Better control of the risks the own insurance has to
cover
International Best PracticesPolicyowner servicing improves customer experience
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Description
21st Century Insurance was the first auto insurer to offer consumers the ability to get an auto insurance quote via Facebook
“GEICO Shortcuts” offers GEICO policyholders access to their insurance information using the functionality of Facebook
21st Century Insurance was the first auto insurer to offer consumers the ability to get an auto insurance quote via Facebook
“GEICO Shortcuts” offers GEICO policyholders access to their insurance information using the functionality of Facebook
Customer Value
Improved customer experience as the services are fast, easy to use and reachable from everywhere
Improved customer experience as the services are fast, easy to use and reachable from everywhere
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IntroductionIntroduction
Insurance Social Media Maturity ModelInsurance Social Media Maturity Model
Market AnalysisMarket Analysis
Innovative Business ApplicationsInnovative Business Applications
Market PotentialMarket Potential
Strategic Options & ConclusionStrategic Options & Conclusion
Innovative Business ApplicationsThere are interesting innovative business applications for the Social Media industry
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Medium term(3-5 years)
Medium term(3-5 years)
Long term(5+ years)Long term(5+ years)
Short term(1-2 years)Short term(1-2 years)
Integration of Social Media into corporate CRM
Integration of Social Media into corporate CRM
New products integrating Social Media
New products integrating Social Media
Friendsurance Pricing Schemes
integrating Social Media
Connections between agent/ broker and clients
Friendsurance Pricing Schemes
integrating Social Media
Connections between agent/ broker and clients
Innovative Business Applications – Short termIntegration of SoMe in corporate CRM
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Customer benefitCustomer benefit
Targeted advertising Targeted advertising
Benefit for insurance company
Benefit for insurance company
Additional client and non-client data can be used for data mining
Enhanced customer segmentation
Additional client and non-client data can be used for data mining
Enhanced customer segmentation
RequirementsRequirements
Interface between social media platforms and corporate CRM
Interface between social media platforms and corporate CRM
RisksRisks
Security issues Privacy issues Security issues Privacy issues
Innovative Business Applications – Medium termConnections between insurance agent and their clients enhance the customer relationship
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Customer benefitCustomer benefit
Service: Easy way for communication and support
Familiar platform
Service: Easy way for communication and support
Familiar platform
Benefit for insurance company
Benefit for insurance company
Easy way to manage customer relationship
Increase visibility Customer advocacy
Easy way to manage customer relationship
Increase visibility Customer advocacy
RequirementsRequirements
Guidelines Relevant material Customers need to
adapt
Guidelines Relevant material Customers need to
adapt
RisksRisks
Selling must not be the primary driver
Vulnerability to spread of negative news
Selling must not be the primary driver
Vulnerability to spread of negative news
Innovative Business Applicatins – Medium termThe idea of Friendsurance can also be adopted on insurance level
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Customer benefitCustomer benefit
Savings Community Savings Community
Benefit for insurance company
Benefit for insurance company
Reduction of adverse client behavior
Increased customer knowledge
Customer advocacy
Reduction of adverse client behavior
Increased customer knowledge
Customer advocacy
RequirementsRequirements
Platform Critical size Marketing
Platform Critical size Marketing
RisksRisks
Conflict with agencies Regulatory
environment
Conflict with agencies Regulatory
environment
Innovative Business Applications – Medium termConnection between clients and insurance companies offer potential for new pricing schemes
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Customer benefitCustomer benefit
Savings Savings
Benefit for insurance company
Benefit for insurance company
Increased customer data for risk management
Marketing
Increased customer data for risk management
Marketing
RequirementsRequirements
Autom. of data analysis and integration into risk system
Autom. of data analysis and integration into risk system
RisksRisks
Available data may not be true
Ethical issues e.g. about discrimination
Available data may not be true
Ethical issues e.g. about discrimination
Innovative Business Applications – Long termSocial Media brings opportunities for new insurance products serving new needs: e.g Insurance of Facebook account
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Customer benefitCustomer benefit
New needs arise with societal and behavioral changes
New needs arise with societal and behavioral changes
Benefit for insurance company
Benefit for insurance company
New business development
New business development
IT security will increasingly become an issue also for private users!
ExampleExample RequirementsRequirements
Product development in insurance industry very time consuming
Market sizing challenging
Product development in insurance industry very time consuming
Market sizing challenging
RisksRisks
New product risk Fast changing
environment
New product risk Fast changing
environment
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IntroductionIntroduction
Insurance Social Media Maturity ModelInsurance Social Media Maturity Model
Market AnalysisMarket Analysis
Innovative Business ApplicationsInnovative Business Applications
Market PotentialMarket Potential
Strategic Options & ConclusionStrategic Options & Conclusion
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Market PotentialMost respondents were between 22 and 28 years old
Market Potential93 % of the respondents do not have any experience with insurance offers on social media
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UsageUsage FollowingFollowing InsuranceInsurance
Have you ever used any social media offer from a company?
Have you ever used any social media offer from a company?
Are you following any company on Facebook?Are you following any company on Facebook?
Have you ever used any social media offer of an insurance company?
Have you ever used any social media offer of an insurance company?
YesNo N= 45
YesNo N= 45
YesNo N= 46
Market PotentialThe majority of respondents is willing to connect to an insurance company in exchange for a 10% discount
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A 10% premium reduction would motivate 50% of the people to connect their profile with the one of an insurance company
20 % of the people are not willing to connect their profile with one of a insurance company
An insurance company offers you premium reductions, if you connect your Facebook profile with the corporate profile. From which premium reduction on would you be willing to do so?
Legend% of People willing to connect with corporate fanpage
N = 45
Could you imagine to be connected with your personal insurance agent on Facebook?
Could you imagine to be connected with your personal insurance agent on Facebook?
Your insurance company offers you fast and easy access to your costumer via Facebook. Do you see any advantage in this?
Your insurance company offers you fast and easy access to your costumer via Facebook. Do you see any advantage in this?
Could you imagine to use Friendsurance?
Could you imagine to use Friendsurance?
Could you imagine to recommend your insurance company in social media?
Could you imagine to recommend your insurance company in social media?
It becomes possible to purchase insurances on the fanpage of the insurance company or via application. Do you see any advantage in this?
It becomes possible to purchase insurances on the fanpage of the insurance company or via application. Do you see any advantage in this?
Market PotentialAlready today a quarter of the respondents can imagine to be Facebook friends with their insurance agent
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Agent Relation E-Policy Friendsurance Recomandation Micro Insurance
YesNo N= 46
YesNo N= 46
YesNo N= 46
YesNo N= 46
YesNo N= 46
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IntroductionIntroduction
Insurance Social Media Maturity ModelInsurance Social Media Maturity Model
Market AnalysisMarket Analysis
Innovative Business ApplicationsInnovative Business Applications
Market PotentialMarket Potential
Strategic Options & ConclusionStrategic Options & Conclusion
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Option 3Pioneering
Development of unique products and services
Social Media as unique selling proposition
exceed customer need
Development of unique products and services
Social Media as unique selling proposition
exceed customer need
Option 1Skip Social Media
Focus on the traditional services and channels
No Social Media activities at all
Focus on the traditional services and channels
No Social Media activities at all
Option 2Active Participation
Social Media fully integrated in the organizational structure (resources and responsabilities)
Continuous improvement by fully adopting to the market development
Social Media fully integrated in the organizational structure (resources and responsabilities)
Continuous improvement by fully adopting to the market development
Strategic Options & ConclusionWe recommend to active participation
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There are potential business applications enhancing customer value Customers have positive attitude towards new Social Media offerings
from insurance companies
There are potential business applications enhancing customer value Customers have positive attitude towards new Social Media offerings
from insurance companies
Relationships between agents/ insurance companies and their clients can already be implemented
Top Management attention because changes are essential Interaction level should be pursued
Relationships between agents/ insurance companies and their clients can already be implemented
Top Management attention because changes are essential Interaction level should be pursued
Uncertainty about regulatory environment Uncertainty about development of Social Media platforms Uncertainty about regulatory environment Uncertainty about development of Social Media platforms
Potential is given
Uncertainties exist
Insurance companies should position themselves
Strategic Options & ConclusionSocial Media is a strategic topic for insurance companies
Backup
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Market Analysis (1/5)
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Company Allianz Suisse AXA Winterthur
People Spectators, Joiners / Conversationalists (Wiki) Critics
Objective Talk: push / Support (Wiki) Talk: networking
Strategy
Targeted stakeholders costumers Customers, prospective employees
Technology
Corporate Website Website Website
Facebook Fanpage existing but inactive Fanpage 1‘479 Fans, job offers, discussions, participation
Twitter @allianzsuisse existing but inactive @AXA_Schweiz general customer information, interaction
Youtube Channel advertisements only Channel, product spots, recruitment information, prevention material
Blog N/A N/A
Mobile Application N/A Axa App
Other Wiki N/A
Remarks Allianz Austria is more active on FacebookAllianz Germany has a mobile app
Market Analysis (2/5)
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Company Basler Versicherungen Generali
People spectators, joiners spectators, joiners
Objective Talk: push Talk: push
Strategy
Targeted stakeholders customers customers
Technology
Corporate Website Website Website
Facebook Fanpage inactive Fanpage active since summer 2011
Twitter @baloise_ch inactive, future activity announced @GeneraliCH active since september 2011
Youtube Channel TV-adds only Channel
Blog N/A N/A
Mobile Application security app Infos, e-banking, e-insurance N/A
Other N/A N/A
Remarks
Market Analysis (3/5)
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Company Helvetia Die Mobiliar
People spectators, joiners spectators, joiners
Objective Talk: networking Talk: networking
Strategy
Targeted stakeholders Customers, prospective employees Customers, prospective employees
Technology
Corporate Website Website Website, RSS news feed
Facebook Fanpage info about social activities, jobs, locations, events Fanpage ; events, viedeos, discussions, contests
Twitter @helvetia mainly recruitment @diemobiliar_ recruitment
Youtube Channel advertisements only Channel advertisements only
Blog N/A N/A
Mobile Application Helvetia Notfall Application Mobiliar Notruf
Other N/A N/A
Remarks
Market Analysis (4/5)
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Company Nationale Suisse Swiss Life
People inactives spectators, joiners
Objective listen Talk, energize
Strategy
Targeted stakeholders n/a Customers, prospective employees
Technology
Corporate Website Website
Facebook n/a Fanpage : personalized, contests, interaction
Twitter n/a n/a (in Switzerland)
Youtube n/a Channel advertisements only
Blog n/a n/a
Mobile Application n/a Swiss Life Rechner calculation tool
Other
Remarks
Market Analysis (5/5)
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Company Vaudoise Zurich Connect
People inactives spectators, joiners
Objective - Talk: networking
Strategy
Targeted stakeholders - Customers
Technology
Corporate Website Website, Rss Feed Website
Facebook N/A Fanpage games, product selling
Twitter N/A @Zurich_ch
Youtube N/A Channel
Blog N/A N/A
Mobile Application Vaudoise Zurich ConnectZurich Helppoint
Other N/A
Remarks