Early adopters will reap benefits
The nature of the world is changing. The physical nature of products, as well as the physical action of going to purchase the product, is slowly but surely becoming extinct as technology flexes its muscles and increases its influence on society.
In many aspects, this has improved society and has opened up new opportunities for growth for companies who can now market their product far beyond their immediate locality. However, this has also had a particular impact on companies who are worried about adopting technology into their business processes.
Don’t miss the boat
While the slow adopters are standing back and reassessing their options, the technology boat is getting ready to sail; and with it, a world of opportunities for new business.
Speaking at the recently held Financial Intermediary Association (FIA) of Southern Africa’s Power Broker Sessions, Ryan van de Coolwijk – Head of Cyber at iToo – said that the power of technology must not be underestimated.
“Statistics show that one in three people are currently active on social media and use technology extensively in their daily lives. This is being driven in South Africa by mobile technology. A report from the Pew Research Centre shows that South Africa has a smartphone penetration of 37%, which is a long way ahead of other African countries,” said Van de Coolwijk.
This is also not counting the fact that most people who own smartphones most likely own other smart devices which have internet connectivity such as tablets or wearable devises such as smart watches.
The power of social media
Exactly how much of an influencer is social media? During his first campaign to become the President of the United States, Barrack Obama ran a very successful social media campaign which almost certainly ushered him into the White House.
Fast forward a few years, there was a lot of suppressed fear when Americans found out that current President Donald Trump was the Republican candidate who would go up against Hilary Clinton in last year’s US Presidential race. Yet, a strong social media campaign by Cambridge Analytica again proved to be the decider.
“Social media is starting to become the public’s reference point for many life decisions. Opinions are asked over social media and people are turning to platforms such as Facebook as their preferred source of news,” said Van de Coolwijk.
The insurance angle
Think about how much people live their lives on the internet. As pointed out above, opinions are garnered over social media, pictures are more commonplace online than in conventional photo albums, and people leave reviews (good and bad) on platforms where they will reach a massive audience.
What does this mean for insurers and brokers? Social media allows insurers and brokers to start building a picture of habits that allows the person controlling the message that will be presented to clients to personalise experiences which will make profound impacts.
“Companies are increasingly looking to develop an online presence which will give them personalised channels through which they can engage with clients. It is a very effective strategy to bring business to them as opposed to taking business on the road. Efficiencies can be streamlined and there is the potential to turn over every cent twice,” said Van de Coolwijk.
The real threat
Van de Coolwijk then sounded a warning that is very familiar to the insurance industry’s ears: the threat of cyber attacks in South Africa is very real.
“One of the biggest issues is who has access to your social media accounts. One of the biggest cyber threats is not unseen criminals, but disgruntled employees who feel that social media will be the perfect platform to vent their frustrations. It takes years to build up a rapport on social media, but just one post to destroy it,” said Van de Coolwijk.
Cyber defence is mostly about vigilance. It is also about controlling the controllables. Being attacked over the internet through a hack is not something that a company can control very easily. However, the reaction to a hack is.
When it comes to disgruntled employees, those in decision making positions need to stand back and ask: do I trust this person with building and maintaining a reputation with valued business partners? If you don’t trust them to manage your social media page, maybe you shouldn’t trust them to manage your company’s.
Editor’s Thoughts:
Technology is that fickle beast that offers both pros and cons alike. It is a case of stepping back, weighing them up and then getting on board, before the ship sails. Please comment below, interact with us on Twitter at @fanews_online or email me your thoughts [email protected].
