Tag Archives: Social Media

What motivates people to shop for auto insurance? A study conducted by Facebook and comScore

To discover what motivates people to shop for auto insurance in the U.S., Facebook and comScore teamed up to survey 1,010 U.S. adults who had purchased a car in the last 6 months. Our guest blogger, Brad Auerbach, provides key insights from the survey, which we think will help insurance producers and marketers target potential customers.

By Brad Auerbach, Head of Industry, Facebook

Mobile devices are facilitating consumer research

Smartphones and other mobile devices clearly play a major role in how customers research their insurance options. Thirty-nine percent of survey respondents reported being heavy mobile users, and 64 percent said that they have previously used a smart phone to shop for auto insurance.

But it appears that most customers aren’t using mobile to buy insurance online. Sixty-one percent of respondents reported that they believed research to be important before selecting their provider, but less than half reported that they actually purchased auto insurance online. Of the respondents who purchased offline, 45 percent said they purchased through an agent and 10 percent through a call center.

Key takeaway: The relative lack of online sales activity may be an indication that auto insurers need to improve their online purchasing experience, such as providing a faster and more streamlined design and experience for their users. Note that survey respondents pointed to a good website (25 percent) and mobile app (15 percent) as potential reasons for why they chose their auto insurance provider.

Consumers don’t shop around for very long

Thirty percent of respondents reported that they selected their provider within a single day, and 60 percent said that their shopping window lasted less than one week.

Advertising is one way that affects which insurance provider consumers choose. Almost half (49 percent) of respondents who recalled seeing or hearing auto insurance ads reported that the ads helped them discover new insurance brands. Forty-four percent agreed that encountering ads motivated them to consider an insurance provider that they hadn’t previously considered.

Key takeaway: Insurance producers and marketers should be prepared for consumers to make quick decisions once they’ve found an auto insurance provider that meets their needs.

The 4 major types of buyers and their motivations

We identified 4 major buyer-types in our survey. They included:


33 percent of respondents

Millennials are actively seeking out others’ opinions before buying auto insurance. They’re more likely to be motivated by price. Important triggers for them to begin shopping for insurance include life events, such as buying a new car or moving to a new location.


55 percent of respondents

Loyalists are loyalists for a reason.  They are less likely to do deep research, but instead may place a high emphasis on customer service. Their triggers include contract renewals (51 percent), followed by a new car purchase (34 percent).


37 percent of respondents

Switchers are motivated by pricing above all else. They’re receptive to advertising and they’re likely to research multiple channels such as friends and family, insurance company websites, social media, etc., to ensure that they’re getting the best deal.

Heavy mobile users

39 percent of respondents

The heavy mobile user intuitively turns to their mobile platforms to conduct their auto insurance research. As expected, they tend to be younger, with lower incomes and credit scores. Their triggers include a recent car purchase (41 percent) and the desire for lower pricing (39 percent). 44 percent also reported that they’ve switched auto insurance providers in the past.

Auto insurance producers and marketers can improve their sales performance by understanding who their customers are, including their motivations and how they’re using technology to buy auto insurance.

For more insights on the path to purchasing auto insurance, download the full report.


Brad Auerbach is the Head of Industry at Facebook, where he is focused on leading the operational excellence, revenue growth and strategic partnerships with the largest U.S. financial services and insurance companies. Brad’s team consults with marketers to empower mobile connections that drive business results. Brad is a regular speaker at the McKinsey Property & Casualty Leaders Forum, TransUnion Digital Disruption Summit and Northwestern University’s Kellogg Marketing Conference. Brad attended Indiana University and lives in Chicago with his wife and their two children.

Catching All The Customers

If you plan on trying to catch a Pikachu this weekend, chances are you might be lured into a local pizzeria or bookstore, as savvy businessowners tap into the huge popularity of Pokémon Go and target the pocket monster crowd to boost business.

Now reports say Niantic Labs, the developer of Pokémon Go, will soon accept sponsorship deals with global brands to make certain locations appear more prominently, or to sponsor specific products within the game.

Insurers looking to evolve their business are sure to be among those companies looking at potential Pokémon Go tie-ins to reach and expand their digital audience.

After all, AXA Insurance was among those to partner with Niantic Labs when Pokémon’s predecessor augmented reality adventure game, Ingress was launched in 2013.

The partnership saw AXA retail agencies in the real world turned into Ingress “Portals”, sites that players visit and battle to control for their in-game faction.

In just five months the success of the partnership saw over 600,000 Ingress players visit real world AXA Insurance locations to find, collect and deploy more than 5 million AXA-branded virtual shields in Ingress. AXA representatives also interacted with over 55,000 Ingress players during live player events called “Anomalies” opportunities.

Insurers are also not new to using augmented reality technology in their actual business operations.

For example, Zurich Insurance last year turned to augmented reality smartphone apps to train 10,000 employees in 170 countries in the key skills needed by its next generation of managers.

Insurers are also using augmented or virtual reality (think Google Glasses) to train claim adjusters and streamline the claims process.

So while the insurance risks of disruptive technology like Pokémon Go are clear (and yes, insurers have you covered), it appears there are many ways for insurers to embrace the power of augmented reality to benefit their business and market reach.

As the Celent insurance blog noted:

“For those insurers with investments in the real world like agencies, offices, billboards – and for those that are agile enough – this surprise trend could serve as a great marketing route to catching all the customers, as well as all the Pokémon.”

Top Ten Posts of 2015

As we get ready to ring out the old and ring in the new, we wanted to share with you our most popular posts in 2015.

Our most-read posts here at Terms + Conditions illustrated how interested our readers are in the advancing technology landscape and its impact on the insurance industry. Self-driving cars, cyber insurance and the sharing economy were all featured among the top 10 posts during the year.

In Self-Driving Cars – With or Without You? we recounted a Time.com writer’s chauffeured ride by a prototype Audi from Silicon Valley to Las Vegas for last year’s Consumer Electronics Show. Self-driving vehicles are no longer a thing of the future, we wrote, and this has evolving implications for insurers.

Our post Cyber Business Interruption Risk Often Underestimated reported on a study by Allianz warning that the impact of business interruption (BI) from a cyber attack is a risk that is often underestimated. It predicted that BI costs could be equal to–or even exceed–direct losses from a data breach.

The growing appetite for cyber insurance among small and mid-sized companies was another popular post.

Two of our most-read posts during 2015 also revisited the impact of Obamacare on workers compensation insurance.

In case you missed them, here’s a complete list of our top 10 posts from the year:

  1. Self-Driving Cars – With or Without You?
  2. WCRI Looks At Impact of Affordable Care Act on Workers Comp
  3. A Revisit: Impact of Obamacare on Workers Comp
  4. Cyber Business Interruption Risk Often Underestimated
  5. More Small and Mid-Sized Companies Buying Cyber Insurance
  6. Cyber Value-At-Risk
  7. Homeowners Claims: A Picture of Volatility
  8. Cyber Losses vs. Property Losses
  9. One Ruling, but Uber Impact
  10. Litigation Trends and the Class Action Factor

Thanks for following. We wish all our readers a happy and healthy new year!

Year in Review

As another year comes to an end, we thought it would be fun to take a look back at our most popular posts in 2014.

Our most-read posts here at Terms  + Conditions ran the gamut from extreme weather, to drones, Obamacare and cyber risk.

Perhaps not surprisingly, three of our top 10 posts during the year were on the topic of cyber risk and its impact on companies large and small.

In Latest Cyber Security Breach: 1.2B Passwords Stolen we reported on the largest known data breach to-date, in which a Russian crime ring amassed billions of stolen Internet credentials, including 1.2 billion user name and password combinations and more than 500 million email addresses.

Our post Data Breaches Becoming More Damaging revealed that data breaches are now the greatest risk factor for identity fraud. In 2013, one in three consumers who received notification of a data breach became a victim of fraud, up from one in four in 2012, according to a report by Javelin Strategy & Research.

And in The Importance of Having a Cyber Liability Policy we highlighted that while companies hit by a data breach look to their insurance policies for coverage, recent legal developments indicate that reliance on traditional insurance policies is not enough.

In case you missed them the first time round, here’s a complete list of our top 10 posts:

1. NOAA: Extreme Cold and Snow Unlikely This Winter
2. Drones and Insurance
3. IRC: P/C Insurers Not Immune to Effects of Affordable Care Act
4. Cavalcade of Risk #209: Risk Assessment
5. Latest Cyber Security Breach: 1.2B Passwords Stolen
6. Poor Service, Not Price Drives Auto Insurance Customers to Shop
7. Data Breaches Becoming More Damaging
8. Sports, Concussion Risk and Liability
9. To Lie or Not To Lie
10. The Importance of Having a Cyber Liability Policy

Thanks for following and commenting. We wish all our readers a very happy new year!

Growing Need for Businesses to Manage Social Media Risks

More and more companies are using social media and many recognize the potential risks, but few have an adequate plan in place to manage those risks.

Two separate surveys point to the fact that as social media becomes even more widely used in the corporate setting, businesses need to properly assess and monitor the risks involved.

Chubb’s just-published 2013 Private Company Survey found that 68 percent of companies are using social media – up from 39 percent in 2010 – but only 12 percent are concerned that they will be sued for allegedly making defamatory posts.

Further, only 49 percent have a written social media usage policy for their employees, Chubb found.

Executives at 450 U.S. for-profit private companies were interviewed for the Chubb survey.

An earlier report from Grant Thornton LLP and the Financial Executives Research Foundation (FERF), found that some 71 percent of public and private company executives are concerned about the potential risks involved in the use of social media, but they believe the risks can be mitigated or avoided.

More than half (59 percent) of executives surveyed said their companies do not perform a social media risk assessment.

Also, two-thirds (66 percent) of respondents see their company’s use of social media increasing during the next 12 months, but only a third of respondents (36 percent) reported that their company has social media training.

As the report says:

The evaluation and monitoring of risk needs to be a key component of any organization’s social media strategy, and its importance cannot be overstated.†

More than 100 senior-level executives from public and private companies participated in the 2013 Social Media Risks and Rewards survey, which was conducted during May and June of this year.

Check out the I.I.I. paper Social Media, Liability and Insurance.

Social Media Usage Increases Among Fortune 500

The Center for Marketing Research at the University of Massachusetts Dartmouth has released its annual report on social media usage by Fortune 500 companies.

It shows a surge forward in the adoption and use of social media and new communications tools among this year’s Fortune 500.

Of note for the insurance industry in 2012:

Some 81 percent of companies in the property and casualty insurance industry (stock) had Twitter accounts, while 69 percent had corporate Facebook pages. As for blogging, just 19 percent of these companies had corporate blogs.

Several  P/C insurers have also adopted specialty blogs—those focusing on the company career paths and hiring information, social responsibility and community causes—including State Farm Insurance Cos and Liberty Mutual Insurance Group.

Back to the broader picture:

Overall, the study notes that some 73 percent of the 2012 F500 had corporate Twitter accounts, 66 percent had a corporate Facebook page and 28 percent had corporate blogs.

Furthermore, in the past year, F500 companies have increased their adoption of blogging by 5 percent, their use of Twitter for corporate communications by 11 percent and their use of Facebook pages by 8 percent.

For the first time this year’s study recorded corporate and specialty YouTube accounts. It found some 62 percent of the 2012 F500 (309 companies) had corporate YouTube accounts and 2 percent (11 companies) are posting on Pinterest.

The study notes:

It is obvious that there has been a surge forward in the adoption and use of social media and new communications tools among this year’s Fortune 500. For years, this group has lagged behind other sectors and at times appeared to shun social media. These latest numbers show a renewed interest that includes using these tools for engagement, hiring and fundraising as well as for corporate advancement.”

Website Experience Key For Auto Insurance e-Shoppers

In the lead-up to the holiday weekend, perhaps you missed a new report from J.D. Power and Associates that measures online customer experiences with insurer websites while shopping for auto insurance.

The study found that shoppers who have a highly satisfying website experience are more likely to return to that insurer’s website and are also more likely to recommend the site to friends, relatives or colleagues.

Among shoppers who indicate being delighted (satisfaction scores of 900 and above on a 1,000-point scale), 63 percent are more likely to shop the insurer after visiting their website, compared with 14 percent of shoppers who indicate being disappointed with the website (satisfaction scores of less than 550).

Also, some 50 percent of delighted shoppers say they “definitely will† recommend the insurer to others, while only two percent of disappointed shoppers say the same.

Five factors contribute to shoppers’ overall satisfaction, according to J.D. Power:
– Ease of navigating the website
– Appearance of the website
– Clarity of information provided on the website
– Range of services that can be performed on the website
– Speed of the website

In the words of Jeremy Bowler, senior director of the insurance practice at J.D. Power and Associates:

Insurers have a fantastic opportunity to gain shoppers, and their referrals, by providing a website that is easy to use, has a professional and engaging appearance, and is a great resource for the shopping process.†

An earlier study from JD Power found that 52 percent of auto insurance customers start the shopping process online.

Twitter Trial Highlights Social Media Risks

Be careful what you say online.

A British court earlier this week awarded libel damages of  £90,000 ($140,000) to former New Zealand cricketer Chris Cairns as a result of a tweet posted about him in 2010.

The 24-word tweet, by former Indian Premier League head Lalit Modi, alleged that Cairns had been involved in match-fixing.

According to an Associated Press report, the ruling from London’s High Court determined that Modi “singularly failed† to provide any reliable evidence that Cairns was involved in match-fixing.

Modi was also ordered to pay  £400,000 ($635,000) in costs to Cairns’ solicitors within 28 days.

This isn’t the first time a tweet has turned litigious.

In May 2011, singer Courtney Love was sued for alleged defamation on Twitter by former lawyers who had represented her in 2008 in an effort to recover money allegedly stolen from the estate of her late husband, Kurt Cobain.

And in March 2011, Love agreed to pay $430,000 plus interest, to settle a landmark Twitter defamation lawsuit brought in March 2009 by her former designer over comments Love made on her Twitter and MySpace accounts.

A recent I.I.I. paper co-authored by myself and I.I.I. president Dr. Robert Hartwig, notes that the growing use of social media in everyday life is giving rise to a range of evolving liabilities.

The good news is that insurance is available to help both individuals and companies better manage and reduce their potential financial losses from social media and cyber risks in future.

Check out a post on ZDNet blog Social Business for more on recent Twitter defamation cases.

Women In Insurance

Some of our readers may know that March is Women’s History Month. In celebration of the event, the Insurance Information Institute (I.I.I.) has developed facts and statistics that provide information on the number of women employed in the industry today and the percentage of women workers in selected insurance occupations.   In addition, the I.I.I. has posted pictures and historical facts on its Women in Insurance Pinterest board.  

Today, Insurance Information Institute (I.I.I.) vice president of communications Loretta Worters tells us more about  women’s history in  insurance:

Did you know that married women in the 1840s could not buy life insurance policies on themselves, a stumbling block to growth of the life industry?   Or that the Insurance Standard was the only insurance paper actively managed by a woman, Emily Ransom in 1897? Did you know that in 1910, out of 9,386 managers in insurance, only four were black women?

There is much we can be proud of as women in the insurance industry and what we’ve accomplished since those early days.   Today, for example, 49.4% of insurance sales agents are women, 57.4% are claims adjusters, appraisers, examiners and insurance investigators and 59.3% are underwriters.   In fact, women have comprised about two-thirds of the insurance industry workforce in each year from 2002 to 2011, according to the Current Employment Statistics Survey (CES). In 2011, there were 1.5 million women employed in the insurance sector, accounting for 66.1 percent of the 2.3 million workers in the insurance industry.

There have been a lot of firsts for women in the insurance industry.   The first woman insurance commissioner in West Virginia was Virginia Mae Brown.   In May 1961 she took office, making her also the first woman insurance commissioner in the United States.   The first recorded women’s insurance industry organization was the Women Leaders Round Table founded in 1936.   Today, we have similar organizations such as the Association of Professional Insurance Women started in 1976 which provides assistance to women with career development.

While the insurance industry is “doing the right thing,† still more can be done.   In 2010, less than 25,000 women were insurance actuaries, too few to calculate a percentage. In 2010, the ratio of women’s to men’s earnings was 81.2% for all insurance occupations; for insurance sales agents it was just 66.7%.

Bina West Miller, founder of one of the first organizations in the country to offer life insurance to women said something in 1892 that still applies today:   “Insurance is the coming work for intelligent, energetic women in the South, North, East and West.†

For more interesting facts in celebration of Women’s History Month, check out our tweets.

Data Breach Victims More Likely To Suffer Identity Fraud

Approximately 1.4 million more adults were victimized by identity fraud in 2011, compared to 2010, as the number of fraud incidents increased by 13 percent in the United States.

One of the key factors potentially contributing to the increase in identity fraud was the significant rise in data breaches, according to Javelin Research & Strategy’s just-released 2012 Identity Fraud Report.

It  found that 15 percent of Americans, or about 36 million people, were notified of a data breach in 2011. Those receiving a data breach notification were 9.5 times more likely to become a victim of identity fraud.

The report also found that consumers’ social media and mobile behaviors may be putting them at greater risk of identity fraud.

LinkedIn, Google+, Twitter and Facebook users had the highest incidence of fraud although there is no proof of direct causation.

Despite the warnings, people on social networks are still sharing too much personal information frequently used to authenticate a consumer’s identity.

Specifically, 68 percent of people with public social media profiles share their birthday information (with 45 percent sharing month, date and year); 63 percent shared their high school name; 18 percent shared their phone number; and 12 percent shared their pet’s name.

Smartphone users are also experiencing greater incidence of fraud, Javelin found, with seven percent victims of identity fraud. This is one-third higher incidence rate compared to the general public.

The good news is that despite the increase in identity fraud last year, it is becoming less profitable for fraudsters as the dollar amount stolen remained steady.

In addition, consumer out-of-pocket costs have decreased by 44 percent since 2004. Javelin attributed this to improved prevention and detection tools that have come available as well as fraud alerts leading to reduced detection time.

Check out I.I.I. info on  identity theft.