The Use of Social Media by Insurers and Potential Legal and Regulatory Concerns

Abstract

There has been a significant increase in the use of social media and the volume of personal information provided on social networking websites. As such, social media has the potential for a variety of uses by businesses, including insurers. As the use becomes more widespread, insurers must navigate the rapidly evolving legal and regulatory landscape as well as understand the constantly changing outlets and tools available. Recently, the National Association of Insurance Commissioners (NAIC) adopted a document which provides the first official guidance on the use of social media for insurance companies. At the same time, a number of studies, reports, and commentary related to insurers’ use of social media have emerged. This study examines the use of social media by insurers and discusses potential legal and regulatory concerns.

Keywords: social media, insurance regulation

JEL Classification: G22, G18