In this article, we’re taking a look at how life insurance markets around the world have been affected by the rise of social media. Both insurers and consumers need to be aware of the effect that social media has had on the life insurance market because it has changed the way in which people evaluate and buy new policies.
The Rapid Rise of Social Media
Although the first social media platform appeared in 1997, social media as a global phenomenon didn’t arrive until the launch of MySpace in 2003. MySpace quickly became the largest platform of its kind, with well in excess of 100 million users in its heyday a few years later. Since then, many new players have arrived on the scene, and MySpace has been consigned to the annals of Internet history, but social media itself is here to stay, hence the need to understand its influence on the financial decisions we make every day.
Social Media as a Source of Financial Education
One of the biggest ways in which social media influences the market for all types of life insurance in Australia and across the globe is through education. Slides, infographics and raw statistics are shared in social media posts by both insurers and individual consumers. The more active someone is on social media, the more likely they are to be exposed to and influenced by posts on life insurance and other financial matters.
Peer Reviews and Influencer Recommendations
Peer reviews of life insurance policies and recommendations from influencers are taken seriously, particularly by younger adults who grew up in a world where social media was a constant companion. Insurers who want to reach new customers should bear this in mind when formulating new advertising campaigns. Trusted advocates with big followings have the potential to help insurance companies reach many more potential customers and have an important part to play in many successful digital marketing campaigns today.
The Rise of Digital-First Life Insurance Providers
In a world where more and more consumers turn to social media for help and advice on personal financial matters, the rise of digital-first insurance providers should come as no surprise to anyone. These forward-thinking insurers are ideally placed to leverage the marketing power and reach of social media platforms, increasing brand visibility and attracting more potential customers as a consequence.
Is There a Downside?
For consumers, the potential downside of social media’s influence on the life insurance market is the possibility that not every influencer will be scrupulously honest and not every peer review genuine. For insurers, therefore, the first and most important goal when embarking on a new social media campaign should be to establish an environment of trust. This can most easily be achieved by partnering with highly reputable influencers and by ensuring the accuracy of all marketing material released via social media pages.
In conclusion, social media has a broad and significant influence on the life insurance market in Australia and across the globe. Both consumers and insurers can take advantage of this fact, although industry standards and best practices need to be observed at all times.