Insurtech UX

Insurers can now talk to consumers via Facebook

Insurers can now talk to consumers via Facebook. Photo: Pexels & Messenger
Written by Thomas McCourtie

Facebook has made it easier for insurers to engage with their customers. Story by Thomas McCourtie.

Facebook has opened up its Messenger application to businesses, and insurers should be looking to take advantage of this to further engage with customers.

According to Ofcom statistics, 64% of UK adult internet users (aged 16+) look at social media sites or apps on a weekly basis, but as per the Verdict Financial 2014 General Insurance Consumer Survey, only 19% of those aged 18-34 are using these platforms to contact their insurer. This suggests there is untapped potential in this channel.

Facebook’s launch of Businesses on Messenger could bridge this gap. Rather than just focusing on brand promotion, the new functionality allows insurers to use Facebook as an additional means of dealing with customer enquiries, and to engage with an audience familiar with using social media as a regular method of communication.

According to industry reports, the next step for Facebook is to allow third parties to build apps directly into Messenger. This would enable insurers to utilize the platform and establish another route to market. Insurers could build quotation and ratings systems through the service, and appeal to digitally savvy customers who prefer to perform transactions online as opposed to more traditional methods.

Social media is firmly entrenched in consumers’ lives, and the introduction of Businesses on Messenger should encourage insurers that have avoided the channel (or have opted to maintain a limited presence) to embrace the concept and look to develop a proposition.

– This article is reproduced with kind permission from Verdict Financial. Some minor changes have been made to reflect BankNXT style considerations. You can read the original article here. Photo: Pexels & Messenger

About the author

Thomas McCourtie

Thomas McCourtie is an analyst within the general insurance team at GlobalData Financial. He has a fintech background, and focuses on the commercial insurance sector and the growing influence of automated product distribution platforms.

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