Last week’s Admiral launch of a social media insurance project raised a number of interesting points. It does seem a shame that it did not quite go as expected but I think that Admiral is to be applauded for taking the initiative here.
We should remember that there is a real problem with the public understanding of insurance – see some of the comments of the Insurance Fraud Taskforce and the many initiatives of ABI and CII that try to address that – so anything that engages with a section of the population on their terms, using a medium they are familiar with is a step forward.
Admiral was targeting young drivers, and millenials are one of the groups who would probably find the small print of a policy rather complex or ‘dull’ and the time taken to discuss all the detail required to take out a policy just too onerous. Surely the opportunity to get a quote based on Facebook ‘lifestyle’ information without all that aggravation would be a consumer benefit?
There are of course privacy issues but there are generational differences on this and it appears that it was Facebook that restricted the use of its site and the user information. Has anyone asked the millenials about this? It may be the case that they are happy to share that information and 15% off the premium might well be a small step to an understanding of the pooling of risk and pricing. Perhaps in the not so distant future we might be buying Facebook Insurance?
Written by Terry Renouf, consultant, BLM