All Insurance Professionals

You may have been receiving calls lately from customers with auto insurance questions about recent rate increases that they cannot explain. If the company isn’t going through rate revisions because of last year’s losses or a recent natural disaster, it’s time to consider what’s going on with your client’s social media profiles. It’ll be up to you to explain the possibility that they may have posted something on a social media account that caused the increase, and you’re clients aren’t going to like it.

Part of good customer service involves keeping your clients informed. As an agent, you are the middle person who has to represent the insurance company while also protecting the interests of your customers. As such, it’s your duty to let clients know about the dangers involved with sharing too much on social media sites, even if your agency has its own social media program to interact with clients. Agents walk a fine line between serving their customers and the insurance companies, but should always err on the side of consumer protection and good customer service.

Insurance providers are increasing their use of social media sites to verify insurability of their customers. If they post questionable content, i.e. junior has a lead foot and got a speeding ticket, the insurance carrier may see it and hike rates as a result. Clients must understand that sharing information publicly means everyone…and every company…can see it.

All it takes is for the company to raise rates is confirm the Facebook poster’s address and check with police records to confirm the incident. According to Celent, a research and data gathering organization for the financial and insurance industries, in just a few years, it will be easy for companies to the streamline their processes to track and confirm social media incidents that could merit a rate increase.

What Should You Tell Clients?

Let your clients know that they should be thoughtful about what they post on social networking sites. If they have teen drivers in the house, it’s important to discuss social media and privacy with them as well. Monitor your kids’ accounts to see what they are posting. Anything that could potentially reflect negatively on an individual or family doesn’t belong on Facebook.

Clients can adjust their privacy settings so that only those who they count as friends can see their postings, address and real name. It may help to put together a small brochure for clients, which would also serve as a smart marketing tool.