Social Media in Insurance

Socia Media in Insurance Exposion of socia networking phenomenon triggered by Internet pervasiveness and fueed through mobie phones have created a new cut on onine groups among Gen-Y popuation. Insurance, more so on persona ines has become a service-differentiated industry where active customer engagement and customer experience management can bring in oyaty. It is imperative to stay cose with customer in a competitive environment and in trying times. Socia media has found a pivota pace in Insurance ecosystem. Externa adoption aids product marketing, infuencing distribution by reach and education and as a patform for stakehoder coaboration. Interna adoption brings effective coaboration, improve productivity and improve organization cuture. Whie the aficionados tout socia media as an open patform, the fine print is equay important. This paper expores the opportunities the patform brings for insurance carriers and outines the aws that govern onine space specificay for an Insurer onine. We have presented an adoption guide for socia media, foowed by pointers for enabers and acceerators of an Insurer from TCS and market. A mechanism to measure vaue-add to hep IT organizations justify a business case, is aso detaied.

Socia Media in Insurance About the Author Saravana Pavada Saravana Pavada has 11 years of experience on severa facets of IT software deveopment spanning from appication deveopment, project management and program management. He has dominant experience on insurance core business functions encompassing poicy saes front-end systems deveopment, reinsurance appications and caims recovery systems. Emai: pavada.saravana@tcs.com Kamesh Meduri Kamesh Meduri is a soution architect in Insurance Soutions unit. His areas of expertise are Java EE with specia focus on web technoogies and UI design. In his ten years of tenure, he has worked with arge-scae transformation programs and BPM soutions. Kamesh hods B.E and M.Sc from BITS, Piani. He is SCJP, SCBCD and a certified TOGAF practitioner. Emai: k.meduri@tcs.com 1

Socia Media in Insurance Tabe of Contents 1. Introduction 3 2 Understanding Socia Media Phenomena 4 3 Socia Media Opportunities for Insurers 4 4 Ground Rues of Socia Media 8 5 Adoption guide for an Enterprise 10 6 Chaenges on the Socia Patform 12 7 Our Experience, Offerings and Insights 13 8 Summary 16 9 References 16 2

Socia Media in Insurance Introduction Internet powered by 3G technoogies and user deveoped appications (for exampe, Appe iphone appications) are driving the next big eap forward. For exampe, eading insurers ike State Farm, Nationwide provide iphone appications that aow insurers to conduct basic transactions on their poicies on the move. Socia networking is another happening trend we notice. Socia media usage exceeded web emai usage for the first time in February 2009 [1] Socia media audience in the US totas 122 miion or 64% of the tota Internet audience [2] 75% of US onine aduts participate or consume socia media at east once a month [3] Wordwide 175 miion active users spend 3.0 biion minutes each day on Facebook [4] By bringing in socia media patforms to mobie over Internet, the possibiities ony mutipy. Figure 1 shows few popuar sites from ever-growing ist of socia networking sites. Figure 1: Popuar Socia media sites 3

Socia Media in Insurance Understanding Socia Media Phenomena Socia media is a patform for communication and coaboration. Figure 2 iustrates services typicay covered under socia media. It aso shows the major payers for the services. Socia Networking LinkedIn, Facebook, MySpace WordPress, Typepad, Bogger Bogging Sharing YouTube, Fickr, SumgMug Socia Media Twiter, Jaiku, Tumbir Micro Bogging Pubishing Wikipedia Digg, Bogger Podcasting Bog Tak Radio, ODEO Figure 2: Eements of socia media and eading providers Socia media presents enormous opportunity for enterprises to buid reationships among suppiers, customers, empoyees, investors and other business partners. Socia Media Opportunities for Insurers Socia networking is breaking barriers, penetrating into enterprises and connecting miions of users. This wi act as a potentia force mutipier for business opportunities. Growing infuence of Internet on insurance is conspicuous. Research on US auto insurance found that: 32 miion onine quotes and 2.4 miion poicy purchases were done onine in 2008 [6] Neary 4 out of 10 auto and ife insurance buyers visit socia networking sites monthy [3] These statistics show a wider exposure of Insurer s customer base to socia networks. Customers are switching to other modes of insurance information research eaving the Insurers tizzy. Insurers were compeed to wecome the socia media evoution and adapt to it. Foowing is the set of key opportunities opened/mutipied by socia media in insurance industry. KYC Listening to Voice of Customer Educate/Spread Awareness 4

Socia Media in Insurance Stakehoder Coaboration Patform Buid Brand Image Fraud detection Reaching out to Gen-Y Referra Saes Targeted Marketing Know and Reach Your Customer Large payers (Ex: State Farm, The Hartford) operations are significanty agent driven businesses. In agency mode, Agents in some situations become a ayer in between hindering visibiity or direct reach for the Insurer about the customer to capture, understand and cater to diverse needs of customer. Creating an open coaboration patform with a stakehoders organized as communities wi remove the barriers of information. Customers get to know the insurance company we and vice versa especiay if Insurer is new into the seect neighborhood. Some Insurers created niche communities to attract specific segments. Ex: Motorcyce rider community. Staying cose to customer is most common reason for going socia across industries. De aunched a customer engagement program. British Teecom (BT) has a socia CRM soution that heped better retention. Listening to Voice of Customer Socia media serves as a patform for customer reviews. Insurers can get feedback on what product is good or not; the premium is high or ow or a comparative quote basis; whether a specific area agent does smooth caim handing or not. As opinion snowbas, it becomes a fact and starts affecting business resuts. More often than not, Insurer gets to know that ony when customer is ost in their systems and no amount of retention tak heps. It is not that customers are sient but he is rather unheard. Not every customer informs Insurer of their bad experience or opinions in spite of gift coupons and muti-channe avaiabiity. Customer vents in forums, bogs and reviews in socia sites where the comment becomes sticky. This hurts customer oyaty in short term and prospect wins in medium term. Insurers must buid an eary warning system or indirect feedback system esp. by tracking compaints about poor caim handing, high premium posted on socia forums. BT UK s argest teecom payer, appication Debatescape monitors socia networks such as Twitter and Facebook that discuss issues such as poor customer service experiences. Customers who had a bad experience with BT products or services can voice their views in the community. BT managers can then connect with author (customer) to address the rea issue. This definitey creates goodwi on the company and improves customer oyaty. Educate/Spread Awareness Insurance is a highy personaized, need based risk cover. Customers must understand the benefits of products and buy a best-fit cover for their ifestye. This needs active engagement of customers by providers through financia protection education, insurance product awareness etc. Myths, FAQs were good but now audience prefer educationa videos, Wikipedia stye and Do-It-Yoursef toos. The site that heps users understand and makes them take informed decision wi get saes than sites with brochures and fashy saes tak. Ex: Genworth Financia shows the average cost of assisted iving for each state. This heps in users picking the right amount of fund to support post retirement ife. 5

Socia Media in Insurance Stakehoder Coaboration Patform Insurance sae buids a reationship among stakehoders Agents, Insurer and Customer. Each of the party has their own objectives. Some of them are Customer must fee his/her agent and Insurer are avaiabe on demand Agents wi have access to information guides and toos to be more productive Agents must share reevant info within geography or about a product to deiver consistent customer experience Agents a coaboration too by agents to share best practices Agents need an interna communication mechanism with their customers/prospects and within their agent community Agents can participate in discussion forums, customer awareness forums and take Q&A Insurer can get feedback, ideas, and trends from customers, agents and other stakehoders Socia media patform heps to convert a channeed communication ayers into shared coaboration patforms as shown in Figure 3. Enterprise coaboration patform powered by socia media wi meet above goas. Insured Insured Agent Insurer Insurer Agent Insured Insured Figure 3: Socia media transforms communication into coaboration Buid Brand Image These days, the onine identity represents what company stands for and vaues. Companies have successfuy used socia media to convey about new initiatives, CSR ike activities. Socia media provides a patform to drive initiatives with a bigger cause. On socia media, Insurers reaize the audience base is wide word rather than their own poicyhoders. This opens up an opportunity to position company as a good corporate citizen and a thought eader rather than a profit motive business. Ex: Liberty Mutua s Responsibiity Project Peope beieve in doing right things make better customers heped to create positive infuence on the behavior of the customers. This video wi infuence their poicyhoders be a good driver, which in turn coud bring down DWI and other rash driving vioations bringing down caims. Aso, watch and work with Infuencers from industry and onine community who get your message right and support it. 6

Socia Media in Insurance Traditionay, certain brands are associated with certain characteristics and target segments. This is Brand perception. In seect cases, this prejudice hinders market penetration of an Insurer. Socia media presence and campaigns hep an Insurer to ater the same. Ex: State Farm You Tube based campaigns for younger customers heped to improve their image of Insurer of younger generation. Fraud detection Peope generay share identity with friends and trusted communities on Socia media. This vountary discosure of truth heps Insurer to get insights, which are otherwise unavaiabe. Peope aso have a tendency to boast of their wrongdoings on pubic forums to fake a big-boy appea. Insurer can watch this to detect any misbehavior that is around the poicy contract. Suitabe action or fear of action coud prevent avoidabe osses to the Insurer. Ex: Manuife - Uses socia networking sites to investigate cients for fraud and protects caim osses. Reaching out to Gen-Y Traditionay, insurance was serious business and Insurers needed a eve of maturity at customer s end. Hence, marketing was ess incined to Gen-Y (DOB: 1979 1994). [7] However, this resuted in creating a argey under-served market. Foowing are some stats [8, 9], which hep, visuaize this market segment: Over 70 m young peope (25% of Americans) spend more than $150 biion every year in purchases Boasts an annua income of up to $200 biion and an expected inheritance of more than $17.8 triion Gen Y represents approximatey 10 percent of the U.S. abor force Gen Y wi buy approximatey 25 percent of the new cars and trucks sod in the U.S. by 2010 Average age of a first-time home buyer from Gen Y was 26 Insurers are sowy reaizing under-served market shortcoming and rediscovering themseves for we-informed Gen-Y through innovative ad campaigns. For exampe, a arge U.S auto Insurer is targeting younger customers and attempting to ater its brand image through sustainabiity campaigns over YouTube. Referra Saes Insurance is a highy reguated industry and is a market with simpe and compex products. Genera insurance products (For exampe, Auto iabiity insurance) have become standardized and are offered across mature markets (US and UK) as commodity products where users do price shopping. On the other end of the spectrum, service intensive products on the speciaty ines (For exampe, Professiona iabiity), property cover or variabe annuities is rated by service as a differentiator (For exampe, catastrophic caims handing on a property poicy) where a good word-of-mouth is a strong seer. A study conducted found that socia effect is positive for 40% of the users. [4] Onine insurance aggregators have aunched insurance bogs to provide atest insurance market information, hep customers finding right insurance, give tips on saving money and share this information via RSS feeds and socia appications ike Twitter, Facebook and so on. InsWeb, an US onine insurance aggregator, aunched a website by name 'freeinsuranceadvice.com', which creates a socia community that provides expert answers to customer questions and information on saving money on auto, home, heath and ife insurance. 7

Socia Media in Insurance Targeted Marketing Banner ads on web pages are archaic. Seth Godstein, co-founder of Socia Media Networks, wrote on his Facebook bog that a banner ad is universay disregarded as irreevant if it s not ignored entirey. [5]. Socia media sites serve as a patform for fexibe marketing campaigns. The variations incude profie aware ads, page content sensitive ads, profied ads to users based on ocation, profession, interests and so on. These targeted marketing opportunities have a better-hit ratio than a TV commercia, which is more of a bind broadcast. Ex: Page Ad about teen insurance is better on a bog dedicated to teen driving. Socia media marketing (SMM) is a becoming an integra function of eading payers and is deivering resuts. Ground Rues of Socia Media Socia media as a phenomenon is successfu because of free and open communication. However, do not construe it as an unreguated space. There are enough aws that govern onine behavior and content. Socia Media Common Laws Tabe 1 ists the major aws that govern any socia networking site and irrespective of business sector. Scope Law and Governing Authority Poicies Impact to Socia media Privacy Impicit right guaranteed by US Constitution protected by FTC Civi rights Site must compy with genera customer protection aws and on civi rights. Copyright, IPR US Code - Section 512 of the Digita Miennium Copyright Act Author is iabe. Service provider is not iabe if there are mechanisms to report and remove disputed content. Site must aow to report abuse Site must aow to report IPR issues and governance workfow for corrective action Content Free speech - Expicit right guaranteed by US Constitution and The First Amendment Author is iabe. Site is iabe if it enhances or processes the information, not iabe for, as-is dispay. Site must aow to report abuse Site must aow to report IPR issues and governance workfow for corrective action KYC Protection of kids onine - Proposed US state aw by NC, CT Socia Networking sites are required to verify age and identity with guardians. Socia behavior and moraity US Code - Section 230: Protection for private bocking and screening of offensive materia Author is iabe. Immunizes website from any iabiity resuting from the pubication of information provided by another. Site must aow to report abuse Site must aow to report IPR issues and governance workfow for corrective action Tabe 1: Common US aws governing socia media 8

Socia Media in Insurance Socia Media Insurance Laws The previous is a set of common aws for every user, there are Insurer specific aws that need to compy with though they are not specificay targeting socia media patform but have profound importance. Insurers must bear in mind some key aws isted in Tabe 2. Faiure to compy wi prove detrimenta to Insurer. Scope Law and Governing Authority Poicies Impact to Socia media Insurance Contract HIPAA Privacy Rue Heath care providers FINRA and SEC Investment and Annuity backed insurance Corporate Governance HIPAA needs secure channe and privacy contros FINRA wants financia anaysts put discosures in socia forums. SOX - Interna audit and compiance in IT systems Insurer shoud protect persona priviege info Insurers and/or his agents not use socia media for business transactions Insurers must have audit & compiance rues must cover socia media patforms EU Data Protection and US Internationa Safe harbor aws EHRC governs for a EU countries. US FTC governs impications to US and obigations towards EU. Data gathered by socia sites of persona nature is to be guarded as per EU norms Socia media data, backups and incuding vendor storage (coud type) soutions must compy Tabe 2: Key US Insurance aws that govern socia media Insurance aw does not aow hosting services to enabe saes tactics ike vira marketing, ponzi schemes and so on. Insurers must aways foow the aws, as socia media is just another channe but not a means of aternate business. Operating Principes for Compiance Insurers are sti earning how to cope up with the socia networking wave and everage it to connect with potentia audience and reap benefits. However, there are certain operating principes, which authors ike to propose to hep Insurers to take the first step in the right direction. Tabe 3 detais the recommended rues for Insurers before getting socia. Aspect Content Communication Contro Operating principes Content shoud be of pubic nature Compy with privacy aws, Civi rights, Copyright aws and many others aong with Insurance aws No socia media for business communication A 1-to-1 communication must be through company emai Activity on socia media is aso incuded in corporate governance poicies Compy with data security, data privacy, EU data restrictions and SOX compiance etc. Tabe 3: Operating Principes for Insurer on Socia Media 9

Socia Media in Insurance Adoption guide for an Enterprise About 7 in 10 of our cients are active on socia media. It can be argued that there is a wide range of acceptance among Insurers as top payers on socia media and equay among who are coaborating with customers (externay) and agents (internay). Some of the opportunities were discussed earier. However, a reguated business ike insurance has to have certain restrains in conducting business out on socia patforms. Corporate governance practices shoud govern its onine socia behavior. It is essentia that Insurer be rea and never fake. Socia crowd never appreciates fakes and gimmicks as it wi not ast forever against wisdom of crowds. This section detais how an enterprise can go about adopting socia media as a patform to enhance their business. Strategy Phase The objective is to define why a company s presence on socia media patform is important. The presence must aign with brand image and strategic vaue. This phase answers questions ike What is the purpose of socia patform? Who are our target audience and right stakehoders? What patforms shoud we go for? How open shoud we be in our coaboration? Preparation Phase An overa enterprise readiness assessment is required. Internet pervasiveness on mobies had created a new cut tagged aways onine Gen-Y crowd. Any rumor, bad press or a mistake can severey taint the reputation of companies or individuas in a very short span of time. This demands a certain eve of readiness from the operations incuding business and ega team. Data security and privacy of users is of utmost concern, as there are growing reports that socia networking sites are more susceptibe for hacking [10]. Terms of use (ega expectations) and Privacy (user expectations) form a critica factor in success of a socia media patform. Enterprises (Insurers/agents/brokers and so on) must earn from research on What persona information to capture about customer How the information is used What kind of commitment and mechanisms are required to protect the data [11]. The same is true for Insurers or agents who host or participate. Setting up Infrastructure Socia media site providers must strengthen the organizationa network perimeter. S.W.A.T. ike team is required to respond for defamatory debates, virus prevention, intrusion detection and distracting behaviors. Since majority of the visitors to a website are ony readers, content generation becomes the job of Insurers. In addition, significant time and effort is required to try to keep track of socia media patform software, which significanty comes from an open source word. Tabe 4 detais the required investments for readiness from the business/it/operations before adopting socia media. 10

Socia Media in Insurance Investment Quick Response Team Tasks Responses to negative press Safeguard from Intrusions Recommendations Any rumors, bad press and customer aerts to be posted at eariest by the company onsite Data protection poicies, security firewas Technoogy Advances Risk of being Tech Savvy Embrace atest technoogies and toos as and when they gain widespread recognition with customers/pubic Content Generation Demands continuous update Communication ooks 1-way Discussions threads on atest products and reevant reguatory changes create a better experience. Site must ook new and have recent information. Discussions threads on atest products and reevant reguatory changes create a better experience. Site must ook new and have recent information. Impementation Strategies We beieve that socia media has attained the critica mass in terms of user adoption and technoogy maturity as a patform. Figure 4 describes an indicative roadmap for enterprises. Restricted Intranet : Enterprise LAN and empoyees ony Extended Enterprise : Restricted Intranet + Agents + ISPs Tabe 4: Investments to made for socia media Pubic domain : Extended Enterprise + Cients + Prospects + Reguators + Genera pubic. Pubic domain Extended enterprise Restricted intranet Facebook, Twitter LinkedIn - Branding & Campaign mgmt. Advisory Niche Communities Reviews & Ratings Coaboration patform 0-3 months 3-6 months As needed with caution Figure 4: Indicative impementation roadmap Measuring the vaue of socia media Companies shoud have reaistic expectations when it comes to adopting the socia media strategy. It takes a ong cyce to start seeing the resuts of these initiatives. Some of the parameters to consider are in Tabe 7. These are indicative and must be refined based on the Insurer s business operating mode (Agent seing, direct seing and so on). Tabe 5 aso detais the parameters that the business can use to measure ROI. 11

Socia Media in Insurance Horizon KRA KPI Measure Near Term Site Performance Participation and Reach Number of page visits Count of bog posts Profie anaysis of subscribes Other typica website metrics (feedback, avaiabiity, and so on) Medium Term Business Performance (ROI) Infuentia saes Brand vauation Referra saes Brand image ratings Goodwi assessments Longer Term Corporate Performance Customer oyaty Market share Products per househod Repeat business Customer Retention Metrics Chaenges on the Socia patform Bad Press Socia media opens up a window for critics, bad customers to vent their anger. Critics coud write about one-off persona poor experience on a caim settement, misjudged subjective assessment of premium pricing or prejudice on every products or service offered which is usuay far from truth or defamatory. Customers ike who was dismissed a fase caim, who fees premium is reativey higher coud find this patform to tarnish the image of company. Noise Auto spammers, machines that enro and post objectionabe bogs, phantom users who post ads and phishing inks are very common these days. Screen names ike Joe and John used to post comparisons on competition products and rumors are a the Noise creators. Site shoud have a strategy and ceansing mechanism on Noise, to extract any meaningfu feedback and to get true voice of customer. Paid reviews Professiona critics, subject matter experts and freeance consutants see socia media as another source of iveihood. There are peope who earn by evauating products and by writing good reviews and at sometimes, bad reviews for competitors aternate products. These paid reviews are hard to detect by human but pattern recognition software might hep. Operationa chaenges Apart from above socia media specific chaenges, Insurers shoud be wary about typica issues when onine. Tabe 5: Measure ROI on Socia media patform Visibiity Is my forum visibe to the right audience and creating an impact? Vunerabiity Which is the weakest ink in my security? Am I vunerabe for any attack and/or data theft? Cutura readiness Is my entire stakehoder team strong enough to go open to pubic? Soution options TCS istening services gives reports on the atest buzz, happenings, and taking points on the site. These reports wi hep identify the distracters, predators (peope who stea info) and spammers. From the report, operations team coud restrict user or IP address etc. to protect the site from being a soft target. 12

Socia Media in Insurance Our Experience, Offerings and Insights Growing adoption of Socia media A recent survey to assess socia media adoption eves in Fortune 500 companies found significant penetration of socia media in the Internet strategy of Insurers. Insurers were toppers by industry in Twitter adoption [13]. Twitter: 15-20 Insurers incuding Astate, TIAA-CREF, Liberty Mutua Insurance Group and Northwestern Mutua Bogs: 5-10 Insurers incuding Progressive, NY Life TCS recommendations for enterprise adoption TCS has encapsuated socia media experience into offerings acceerated through toos. These hep enterprises by creating a strategy for adoption, jump-start adoption. TCS recommends adoption of its standard, safe and proven 3-pronged strategy of socia media adoption based on Insurer s objectives of going socia. TCS IdeaMax wi be a sure hit kick-start that hep Insurers work on Innovation and process improvement ideas whie encouraging open cuture of debate. The same patform can be everaged and opened up for extended enterprises and to pubic as maturity evoves. This makes socia media IT investments ess risky. TCS Knome wi be fun-fied ice-breaking patform that is a productivity driver in goba spread teams. TCS recommends a Facebook page for every corporate with brief introductions and inks to authentic news. An investor friendy company with significant correation to popuar indices or has arge hodings in genera pubic category shoud use Twitter channe to announce updates for Investors. Insurers shoud have governance poicies to incude these channes as part of their corporate pubic information proceedings. Figure 5 presents common strategies that hep us to meet the socia media objectives with their popuarity and ease of adoption indicated. Ease of adoption Deiver marketing campaigns on socia networking sites Subty promote (Soft-Se) products Promotiona offers offered over specific channes Deiver marketing campaigns on socia networking sites Create an image of being tech savvy, younger and adaptive organization Many Insurers enabes support for socia bookmarks, tagging and debating on their website Host educationa videos Create awareness on insurance, myths and facts about insurance Run quick FAQ Run socia responsibiity and sustainabiity campaigns to buid good wi and image Deveop communities for targeting customer segments Open a 24x7 avaiabiity through socia channe Buid business appications on socia networking sites to be ubiquitous Popuarity with Insurers Figure 5: Common strategies to go Socia 13

Socia Media in Insurance TCS Coaboration Toos TCS has buit various toos for improving coaboration and thus productivity of agents eading to enhanced customer experience. Connecting technoogy with domain expertise of Insurance TCS deveoped a range of toos that woud deiver measurabe resuts to Insurers. Tabe 6 gives quick overview of the TCS repertoire for Insurers to jump start socia media initiatives. Too Overview Fitment in Insurance Vaue Chain IdeaMax TCS INformation extraction (INX) TCS Quest Patform for users to post ideas Ideas can be rated and voted Abiity to tag ideas against defined themes Text mining toos to extract usefu info about customer, anayze feedback Augment CRM with socia profie data Framework to anayze and generate insights from survey responses Enabes Socia Innovation among Agents and coud incude end customers Agents can get faster resoution to queries from Underwriters/ Product Saes Managers Improved agent community coaboration Hep agents and marketing teams understand better. Product and market surveys Empoyee and Customer satisfaction surveys TCS is aso invoved in the deveopment of micro sites, created as part of branding and onine community initiatives taken up by a arge insurer. TCS Connected Marketing Soutions TCS Connected Marketing Soutions aim to bridge Marketing and IT, providing reaity based innovations deivered in partnership with our customers marketing organization, everaging goba best practices and deep domain expertise thus enabing marketers to engage, measure and optimize interactions with target audiences across a the touch points. Tabe 6: TCS Coaboration Toos for Insurance TCS Interactive Marketing Soution is an end-to-end soution comprised of patforms and services for digita campaign management, socia media marketing and promotions marketing, enhancing marketers abiity to engage, measure and optimize interactions with target audiences across digita media, such as onine, mobie and other new age devices. TCS Enterprise Marketing Management (EMM) Soution offers advisory services for marketing business anaysis and prioritization, marketing product comparison, impementation, support and enterprise integration services to achieve process harmonization and optimization. TCS Customer & Marketing Anaytics Soution enabes fact-based decisions, driven from the abiity to accuratey measure and interpret data avaiabe from a mutitude of marketing media. The functiona areas covered are Customer Anaytics, marketing Anaytics, Acquisition anaytics, Retention anaytics and Predictive anaytics. TCS Listening Services The peope that tak about you are not just your users, or your cients. They may not even have decided to invest in your product, yet. However, simpy by virtue of having joined the conversation, they are your community. Moreover, you are part of them, because you are bound by a powerfu common interest - your brand. The voices of your community coud be invauabe to you. It is not just marketing and saes that need to isten to customer conversations. R&D, 14

Socia Media in Insurance Innovation, Product teams, Customer Service, PR and after-saes support can a benefit enormousy from user insights. TCS' Listening Soution caters to the different istening needs of each of these groups. TCS Listening Services provides Roe specific insights deivered directy to the reevant roes in your organization Anayst Reports that cu out key findings from vast unstructured data Incusion of custom data sources, ca-centre records, emais and other feedback channes Sef-Serve access through a hosted mode. One of the outputs of TCS Listening is sentiment anaysis, which captures genera perception of the company on socia media. Figure 6 shows sentiment anaysis of a eading NA Insurer with socia activity anayzed from Nov 2009 to Mar 20010. Very Negative Negative 1.2% 13.1% 38.7% Neutra Positive Very Positive 7% 39.3% Figure 6: Sentiment anaysis - Sampe Other Enabers and Acceerators Various patforms as shown in Figure 1 hep enterprises opt in socia media patforms for business opportunities. Such patforms provide toos and capabiities to harness coective inteigence (aias wisdom of crowds). It is now estabished de-facto that a certain patform is good at a certain market positioning. Enabers: These are patform providers which enabe the adoption - YouTube is widey chosen to host commercias - LinkedIn is de facto patform to host company profie and post job offerings - Twitter is to communicate (usuay 1-way) and respond to questions. Acceerators: There are appications that acceerate productivity and ROI. - HootSuite and CoTweet can hep enterprises manage mutipe Twitter accounts. Empoyee can take and post answers over mutipe Twitter accounts using singe (company s) identity. It is usefu for customer service reps taking QnAs. 15

Socia Media in Insurance Summary Socia media is an essentia phenomenon that every Insurer is watching cosey. Whie some of the eary adopters are setting strides, many are taking it in sow pis. We see increased attention to the socia media with a our cients. Many CXOs are curious to try in sma steps as it is a new arena and needs a cutura shift. Whie amost every known Insurer is out there with few as a reaction with me-too attitude, TCS fees a ong-term strategy is required to distinguish from the rest and stay ahead in the game. TCS offers socia media enabement from strategy to impementation under Web 2.0 Services portfoio. TCS has estabished depth and width of technoogy expertise across rich web content to web anaytics. TCS has Marketing Offerings with Rich Media Campaigns Capabiities everaging a factory mode and deivered for insurance customers. TCS has web 2.0 innovation abs, a dedicated unit within the CTO Office primariy invoved in deveoping and experimenting with next generation web 2.0 appications with focus areas on socia networking patforms, Mashups, socia mining and so on. TCS sees ot of traction in adoption of Twitter. There are caveats to watch for, aws to compy, pitfas to avoid and onine predators to guard against. A these require a credibe technoogy partner in socia media patform enabement. TCS Web 2.0 offerings aong with Connected Marketing Soutions and Listening Services certainy make your socia foray successfu. References 1. Niesen, URL, http://bog.niesen.com/niesenwire/niesen-news/onine-goba-andscape-0409/ 2. 360o i Socia marketing paybook 3. Crafting An Insurance Socia Media Strategy, Research Report, Forrester, June 2009 4. Raghuram Iyengar, Sangman Han, Suni Gupta: Do Friends Infuence Purchases in a Socia Network? Working Paper 09-123, HBS 5. NY Times, URL, http://www.nytimes.com/2008/12/14/business/media/14digi.htm 6. Press reease, comscore Inc., URL, http://www.comscore.com/press_events/press_reeases/2009/4/auto_insurance_poicies_purchased_onine _Up_7_Percent 7. URL, http://www.youth-marketing-statistics.com/2009/08/insurance-marketers-ignore-gen-x-gen-y.htm 8. URL, http://www.insureme.com/insurance-agent/marketing-to-gen-y 9. Insuring the Catayst-Customer: Generation Y and the Insurance Industry, Deoitte Research Report 10. PC Word magazine, URL, http://www.pcword.com/artice/185661/2010s_top_security_threats_facebook_twitter_and_iphone_apps.htm 11. Joseph Bonneau, Sören Preibusch: The Privacy Junge: On the Market for Data Protection in Socia Networks: WEIS 2009 12. Forrester Bogs, URL, http://bogs.forrester.com/groundswe/2008/11/reconciing-soc.htm 13. Nora Ganim Barnes, Ph.D., Eric Mattson CEO, Financia Insite: The Fortune 500 and Socia Media: A Longitudina Study of Bogging and Twitter Usage by America s Largest Companies 16

About TCS Insurance Soutions Group TCS Insurance Soutions Group is a strategic team that weaves insurance domain expertise with technoogy acumen. The team, with decades of experience works on creating customized soutions everaging TCS capabiities and offerings to achieve customers business goas. Team deivers business vaue through right soutions to goba insurance cientee. About Tata Consutancy Services (TCS) Tata Consutancy Services is an IT services, business soutions and outsourcing organization that deivers rea resuts to goba businesses, ensuring a eve of certainty no other firm can match. TCS offers a consuting-ed, integrated portfoio of IT and IT-enabed services deivered through its unique Goba Network Deivery TM Mode, recognized as the benchmark of exceence in software deveopment. A part of the Tata Group, India s argest industria congomerate, TCS has over 160,000 of the word's best trained IT consutants in 42 countries. The company generated consoidated revenues of US $6.3 biion for fisca year ended 31 March 2010 and is isted on the Nationa Stock Exchange and Bombay Stock Exchange in India. For more information, visit us at www.tcs.com. insurance.practice@tcs.com Subscribe to TCS White Papers TCS.com RSS: http://www.tcs.com/rss_feeds/pages/feed.aspx?f=w Feedburner: http://feeds2.feedburner.com/tcswhitepapers A content / information present here is the excusive property of Tata Consutancy Services Limited (TCS). The content / information contained here is correct at the time of pubishing. No materia from here may be copied, modified, reproduced, repubished, upoaded, transmitted, posted or distributed in any form without prior written permission from TCS. Unauthorized use of the content / information appearing here may vioate copyright, trademark and other appicabe aws, and coud resut in crimina or civi penaties. Copyright 2010 Tata Consutancy Services Limited TCS Design Services M 1110 www.tcs.com