Consumers unhappy with insurer use of social media to check claims

Less than a third of insurance customers think it is fair for insurers to use social media to investigate claims, research from Consumer Intelligence reveals.

Only 29% said it is fair for insurance companies to use social media posts to check the validity of claims and a third of consumers are unaware that insurers might use social media when checking claims.

The Consumer Intelligence study shows widespread resistance to data use by companies with just 53% believing it is fair for insurers to share information with other companies and only 63% believing it fair motor insurers can use DVLA data.

However, the highest level of resistance is to the use of social media and credit records – only 28% believe it is fair insurers can check financial status.

The survey also revealed 72% of consumers believe firms do not properly explain the amount of information they can access.

Ian Hughes of Consumer Intelligence said: “Consumers need to be aware that insurers routinely share information and that they can use multiple sources to obtain information about the individual.

“We’ve all heard stories about people subsequently regretting updates or photos they’ve shared on social media and these can also affect insurance claims.

“Insurers ought to be clearer about the information that they can get from third parties in order to assess consumers’ risk profiles and, in some instances, to investigate claims.”

Despite the opposition to data use, 62% of consumers believe insurers will vary quotes depending on people’s financial status and 67% believe insurers will do the same based on social media.