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Social media to transform insurance underwriting

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Searching Facebook and other social network pages of customers has become a frequent practice on the claims side of the insurance business.

Especially in the case of fraudulent claims, social media continues to be an important tool in the fight against insurance fraud. A new report from Timetric finds that searching customers Facebook profiles is one of the first things insurance investigators do to gauge the risk profile of potential and existing customers.

For instance in the case of property, casualty and fire insurance, underwriters are using social networks to check if claims are genuine. By understanding the precise profile of the person on social networks and viewing the person’s previous records, insurance companies can get an idea of the payouts that need to be made. Since social data is still in its developmental stages, there is a long way for many insurance companies to fully integrate social media into underwriting practice.

Moreover, regulation concerning the use of social data and the debate surrounding the privacy of individual information has to be settled too. Various countries, including the US, are currently debating making their social media network related laws more stringent.