1. © Oliver Wyman | NYC-OCR02301-018 REALIZING THE ROI OF SOCIAL MEDIA IN INSURANCE LISTEN TO THE MIRROR 2 MAY 2013 Mike Fitzgerald, Celent Craig Beattie, Celent

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3. 22 © Oliver Wyman | NYC-OCR02301-018 Social activity distribution PassiveActive Manual Automated Social Media Score Card Posing as friends in social networks Searching for public data and images Sentiment Analysis Sharing relevant information Searching for key phrases and group membership Games Invite customer to share more for discounts Understanding friends and influence Seek out customer advocates and customer stories Offering Money for Information Reserved for high value policies and claims activity

4. 33 © Oliver Wyman | NYC-OCR02301-018 Social engagement continuum Value Social Engagement Listening Responding to customer service inquiries Engaging customers ex: sharing stories, games etc. Seek out good risks; Pre-profile customers; Discounts for good behavior Marketing Underwriting Operations DefensiveOffensive

5. 44 © Oliver Wyman | NYC-OCR02301-018 Research methodology

6. 55 © Oliver Wyman | NYC-OCR02301-018 Distribution of customer posts

7. 66 © Oliver Wyman | NYC-OCR02301-018 Overall sentiment

8. 7 © Oliver Wyman | NYC-OCR02301-018 7 Who were customers talking about?

9. 88 © Oliver Wyman | NYC-OCR02301-018 Service sentiment

10. 9 © Oliver Wyman | NYC-OCR02301-018 9 Post 3 ListenRespond Recordings of client calls into the service center should be examined to identify phrases being used by personnel that might imply negative attitudes (re client expressions of “jerk” and “punk”). Appropriate training interventions should occur. Opportunity Poor PracticeFunctions Call Center Operations, Agency Management I have been with them a long time. In the old days, they use to have a bunch of grandma types answering the telephone. They were very helpful and always went over the top to please their customers. These days the customer service is not good. Just a bunch of punks and jerks on the telephones.

11. 10 © Oliver Wyman | NYC-OCR02301-018 You have to be listening in the right places Sites used when discussing auto insurance Sites used for discussing auto Claims and Service ClaimsService

12. 11 © Oliver Wyman | NYC-OCR02301-018 Where people discuss insurance varies by product Sites used when discussing auto insuranceSites used when discussing homeowners insurance

13. 12 © Oliver Wyman | NYC-OCR02301-018 Voice of the customer – Homeowners claims Sample exchange from FacebookKey points Who repairs what and when it gets repaired is a hot topic for homeowners customers in the event of a loss Broadly positive result but… Insured didn’t understand what was and wasn’t covered The way the work was organized and communicated resulted in more costs to the insurer

14. 13 © Oliver Wyman | NYC-OCR02301-018 Stages in social network adoption SharingRepeatingEngagingPromotion Social Network Customers re- share Increase website traffic Searchable online content Reduce assistance calls Content from other sources appears authentic  Requires team  mustn't be seen to endorse linked content Defend brand Answer customer complaints Builds an on-line FAQ Increases customer engagement  Requires team  Regulation  Audit  Privacy – difficult in public forum Promotes brand Rewards word of mouth Network specific voucher codes Sign up friends  Analytics can be difficult Control over network Full visibility of data  Significant costs to set up and promote  Needs an adjacent theme  Why would your customers join an additional social network? Source: Leveraging Social Networks, Celent 2010

15. 14 © Oliver Wyman | NYC-OCR02301-018 Social Risk Profile Custom Social Reports Social Graph Postings to Social Sites Social Score 3 rd Party Data Sources Customer Relationship Management System (CRM) Policy Adminis- tration ClaimsBilling Social system environment

16. 15 © Oliver Wyman | NYC-OCR02301-018 15 Insurers are encouraged to Broaden the use of social search tools to core insurance operational areas such as service, claims, and product development Listen to customers’ posts Use these reflections to map their response to as many operational areas as possible Adjust people, processes, and incentives required to embed the necessary changes in their organizations Perform ongoing monitoring to ensure the sustainability of the adjustments

17. 16 © Oliver Wyman | NYC-OCR02301-018 16 Thank you! This webinar is based on the Celent report: Realizing the ROI of Social Media in Insurance: Listen to the Mirror, published February 2013 –http://www.celent.com/reports/realizing-roi-social-media-insurance-listen- mirrorhttp://www.celent.com/reports/realizing-roi-social-media-insurance-listen- mirror A recording of today's webinar and copy of the presentation will be available to Celent clients on our website at http://celent.com/user/login If you have any follow-up questions about the presentation, please contact Chuck Smith at csmith@celent.comcsmith@celent.com

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