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As the use of social media for financial information grows, it's important to seek specialist advice to ensure your insurance is right for you...
The rise of social media has changed how people consume financial information, including information about insurance.
Research from the United States has shown that people’s relationships with financial institutions are changing in surprising ways. And Generations Y and Z are more likely to look for information on popular online channels than seek out assistance from financial advisors when making financial decisions.
According to research by Vericast, 34% of ‘Gen Z’ consumers in the United States obtain financial advice from short-form, video-sharing app TikTok and 33% get such information from YouTube. Only 24% of this age group seek advice from financial advisors.
Closer to home, the trends are similar. The Financial Markets Authority’s Consumer Experience with the Financial Sector survey 2022 found that young people in New Zealand are more likely to use and trust social media channels like Reddit, Instagram, TikTok and Facebook as a source of financial information. Only 4% of the 18-24-year-olds have used an insurance broker.
Crombie Lockwood’s Executive, Marketing & Client Experience, Debbie Lowe, says social media has become a “very important” part of how many younger people make decisions and companies need to respond.
“We’ve seen the growth in Crombie Lockwood’s own social media following and engagement levels, which is not a surprise when young people are relying on social media for all sorts of aspects of their lives now,” she says.
“It’s natural in some ways to assume that if you're using it in other areas of your life, you will transfer that trust over to financial services information as well.”
Debbie Lowe, Executive Marketing & Client Experience
Debbie cautions that people shouldn’t always believe everything they read online.
“What’s surprising is how online influencers who might not have experience or the necessary credentials to give financial advice are seen as trusted sources. There's some danger in believing everything you see on social media. The advice might not be appropriate to your personal situation.
“Considering information from credible sources is key. We're really focused on demonstrating our credentials as brokers and sharing relevant information on social media to help people navigate a complex landscape,” says Debbie.
“If you're deciding what insurance you need, but aren’t ready to speak to a broker, there is a lot of information on Crombie Lockwood’s website that's useful for background research including why insurance is important, the types of cover available, and our clients' own experiences.”
While online information is great, Debbie says having a conversation with an insurance broker provides people with a level of personalised support that’s hard to find online.
“A broker will take the time to understand you and use their experience and expertise to match your insurance needs to what's available. With insurance, you're buying a promise that if an unexpected event happens, you've got cover, so it’s important to get it right.
“Our mission as a company is to position clients to financially survive any insurable event. And that mission is something that you hear our brokers talk about. Our people take that responsibility seriously, and that’s the real value of using a broker.”
Published November 2022