Gen Y wants social media insurance

Your Gen Y clients love using social media. And they want to insure it too.

They offer a potential emerging market for online insurance coverage, says research done by the Chartered Insurance Institute (CII) in the UK.

Its research shows younger clients are more aware of media risks than their Baby Boomer and Gen X counterparts in the UK. They’re intent on minimizing financial loss or reputation damage through online scammers.

CII found they’re most concerned with being able to control the commercial use of their name, image or other aspects of their identity. Over half (56%) of expressed an interest in protecting personal image rights through insurance cover.

Conversely, only 23% of those aged 55 and above were concerned with purchasing insurance to control publicity rights. And only one-third of those aged 45-to-55 felt social media insurance is necessary.

If an account is hacked or parodied by a third party, reputation and security damage can be significant. Limiting the impact scored highly among 18- to 24-year-olds, with 26% stating they consider insurance as a safeguard for their reputation. Only 5% of older users shared their concerns.

Read: Safer financial websites coming and Advisor uses social media for scam

A generation gap also exists when it comes to buying insurance to cover legal fees arising from online incidents, which can include divorce occurring due to incriminating online posts, as well as job loss. Approximately a quarter of younger clients expressed interest in purchasing coverage, while only 2% of older clients saw its value.

Read: Think before you tweet

The CII’s research identified a lack of knowledge across the board about the dangers of posting your whereabouts and location online. These updates—such as a status listing where you’re hanging out or vacationing—can tell burglars a house is unoccupied and expose clients to theft risk. The vast majority of respondents (80%) were unaware of whether or not they could ensure against these risks and how posts affected their current coverage.

“There’s a growing awareness of the dangers of posting the wrong kinds of information on social networking sites and with it, we’re seeing an appetite for social media insurance from savvy young consumers,” says David Williams, chair of the CII’s Underwriting Faculty, in a release on the Institute’s website.

He adds, “Although this constitutes only a potential new market at present, this type of coverage could form an important part of businesses and individuals’ insurance portfolios in the future.”

Read: Canadians forego insurance in tough economic times

This post originally appeared on CITopBroker.com

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.