Insurance Firms Slow to Use Social Networks: Mintel

Insurance providers are reluctant to fully embrace social media, choosing instead to ease in gradually, according to a survey from Mintel Comperemedia.

Specifically, 70% said they use at least one social media site, but only half report using their accounts for business purposes, the survey found.

“Insurance issuers tend to rely on email and face-to-face interaction because they feel personal contact with clients is a necessity,” said Daniel Hayes, vice president of insurance services, in a statement. “As a result, social media doesn’t rank as high on their list of priorities.”

Of those surveyed, only 14% said they believe social networks have generated word of mouth type leads, and the same amount say social networks allow them to stay in contact with clients.

Only 11% of respondents said they believe social networks give them more client opportunities, according to the poll.

Of insurance producers that use social media for business, 91% of Facebook subscribers said they use the site to communicate with their customers, but only 22% are connected to their carriers, the survey noted.

The survey recently queried 214 independent life insurance producers.