The Impact Of Social Media In Insurance Business Social Sciences Essay (Essay Sample)

THE IMPACT OF SOCIAL MEDIA IN INSURANCE BUSINESS
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Abstract
This research paper examines the influence of social media on the promotion of the insurance industry. In particular, the paper focuses on the way social media can be used to construct online celebrity and how the platform can be used to get information about customers. The research will embrace the intersection between institutional theory, and communication theory to understand the impact of social media on insurance. The research finds that the social media industry affects the information-intensive environment where insurance companies operate. Also research makes several contributions to AIA insurance company operations.
Table of Contents TOC \o "1-3" \h \z \u Abstract PAGEREF _Toc33439206 \h 2CHAPTER ONE PAGEREF _Toc33439207 \h 5Introduction PAGEREF _Toc33439208 \h 5Aim of the research PAGEREF _Toc33439209 \h 6Research questions PAGEREF _Toc33439210 \h 6Problem statement PAGEREF _Toc33439211 \h 6Significance of the study PAGEREF _Toc33439212 \h 7CHAPTER TWO PAGEREF _Toc33439213 \h 8Literature Review PAGEREF _Toc33439214 \h 8An overview of social media PAGEREF _Toc33439215 \h 8An overview of AIA insurance company PAGEREF _Toc33439216 \h 8Social media trends in the insurance industry PAGEREF _Toc33439217 \h 9Influencers of social media usage PAGEREF _Toc33439218 \h 10How social media has influence insurance companies and customer behavior PAGEREF _Toc33439219 \h 11Why AIA needs to use social media technology PAGEREF _Toc33439220 \h 12CHAPTER THREE PAGEREF _Toc33439221 \h 13Research methodology PAGEREF _Toc33439222 \h 13CHAPTER FOUR PAGEREF _Toc33439223 \h 14Research analysis PAGEREF _Toc33439224 \h 14Establish the most widely used social media tools by insurance companies PAGEREF _Toc33439225 \h 14How AIA can use a social media platform to increase its market share PAGEREF _Toc33439226 \h 14How AIA can use a social media platform to reduce its cost of operation. PAGEREF _Toc33439227 \h 14What some of the factors which influence social media usage PAGEREF _Toc33439228 \h 15CHAPTER FIVE PAGEREF _Toc33439229 \h 17Discussion PAGEREF _Toc33439230 \h 17References PAGEREF _Toc33439231 \h 19
CHAPTER ONE
Introduction
The insurance industry is one of the largest industries all over the world with companies such as Allianz, AXA, and prudential Financial which serves millions of customers both Europe and North America. From life insurance companies, reinsurers, to car insurance specialists.
Insurance companies operate in a regulated environment. This means that they need to come up with novel ways to engage in their target markets. Some companies have opted to hang their strategies on mascots, others have opted for specific customer demographic.
In terms of public perception, most of the insurance companies have struggled. Most customers usually accuse insurance companies of not paying out their claims, given insurance covers given unto them. After a global proliferation of the worldwide network and then the fast spread of social networks, clients and customers discuss their troubles with friends and colleagues via the internet. This means comments from Facebook pages, company blogs, and Facebook pages have a direct impact on the online reputation of an insurance company.