An Insurance Industry Guide to the Benefits of Social Media Background Reporting and Analysis

Social media provides the insurance industry with insightful data that drives the best client outcomes across multiple processes and policy types. Our article introduces readers to the various use cases of social media background analysis and reporting to help insurance managers and adjusters calculate accurate premiums, verify claims, and thwart fraud.

Additionally, social media background data helps insurance professionals understand the preferences and needs of each client. By doing so, insurance companies can proactively customize plans according to policyholders’ shifting priorities and concerns.

According to market reports, more than 70% of insurers have leveraged social media as a source of information, a number set to rise with widespread user activity.

The Power of Social Media Background Reporting and Analytics

Modern internet users spend an average of 2 hours and 33 minutes per day browsing and posting content on social media sites like LinkedIn, Twitter, Facebook, and Instagram. A great deal of personal information can be found across user accounts, revealing the background of a person or entity (e.g., business).

Social media background analysis may hold valuable information such as spending habits, lifestyle choices, and other personal practices that may prove highly useful for experts in the insurance sector.

Through detailed social media background reporting and analytics, you can curate relevant interactions and conversations that help you assess each insurance profile with greater transparency. By piecing together the elusive bits of user data, you can validate an insurance claim, detect fraud, and facilitate the best course of action for different scenarios.

Detect Identify Fraud

Fraud costs U.S. insurance companies an estimated $80 billion per year, with half of the amount lost to non-health-related cases. Additionally, perpetrators have employed increasingly sophisticated methods across every stage of insurance transactions.

Social media background reporting and analytics help Insurance companies gather relevant information to quickly identify staged incidents and reject falsified applications to avoid costly losses.

For example, an uncovered social media chat log might reveal the incriminatory plans for a staged traffic collision. Similarly, insurance companies may discover the photos of injured or disabled claimants tagged at a sporting event. As such, social media data can provide discrepancies that expose well-orchestrated insurance fraud.

Support Underwriting Projects

Underwriting involves many risk assessments based on a policyholder’s profile to help your company determine the most suitable premiums. Insurance industry reports indicate that 25 – 50% of underpricing relates to mistakes in the underwriting process rather than soft market conditions.

Social media background reporting and analytics provide you with the supporting evidence necessary to determine the risks and considerations present with each policy, offering a detailed and accurate review of lifestyle, occupation, family medical history, and other factors that underwriters need.

For example, in terms of traffic insurance underwriting, social media analytics can help you identify reckless behavior, such as comments or concerns from relations and loved ones on a person’s driving style and habit of beating the red light.

Social media analytics may also provide valuable proof for the underwriting of life insurance plans. For instance, policyholders may declare themselves non-smokers, but social media images or footage of them smoking at a party will overturn the previous declaration.

Expedite Claims Verifications

Curated and authenticated social media user data can help your insurance agency expedite claims verifications across various insurance scenarios. Essentially, the use of social media proof creates a higher value proposition for policyholders, reducing the risks of fraudulent claims and inaccurate policy discounts.

For example, social media data can help you uncover the details of a speeding incident deliberately omitted in a P&C insurance claim. This is an increasingly significant benefit, as the pandemic has made it more challenging for adjusters and underwriters to inspect properties on-site due to safety concerns. The trend could suggest a growing need for insurers to rely on remote claims verification processes such as virtual surveys and social media analytics.

Social Discovery Corp — Accurate Intelligence in Social Media Analytics

The data experts at Social Discovery Corp have collaborated with some of the biggest names in the insurance industry. We are the sole provider of social media reporting for the world’s largest TPA (third-party administrator). Our analysts provide a unique approach to social media reporting through a hybrid concept known as accurate intelligence.

Accurate intelligence combines the accuracy of advanced AI algorithms with the on-the-ground knowledge and contextual interpretation of human experts to provide you with relevant data every time. As such, our revolutionary method avoids false positives that interfere with the success of your operations.

Social Discovery Corps’ dedicated analysts are ever-ready to support your insurance company with data-backed customized solutions required to fill the gaps in your policy management processes. Each solution delivers measurable results through customer satisfaction scores and ROI, supplying your company with the figures to track and develop winning client strategies.

In the next installment of our series, we will be taking a closer look at how social media analytics and reporting can expedite fraud detection initiatives, minimizing delay while eliminating guesswork.

Get in touch with the Social Discovery Corp team today to start driving optimized outcomes for your policyholders with accurate social media data.