96% of commercial lines insurers and 93% of the London market expect most of their clients will search for reviews or recommendations online by 2016. This compares with just over three quarters (77%) in personal lines.

Ms Knight continued: “There’s a growing consensus that insurers who successfully manage their reputations through social media will benefit significantly. In the future, social media could play a key role across both commercial and personal lines insurance in aiding genuine, non-price-based differentiation.”

However, despite their conviction in the importance social media will come to play, only half the insurers and brokers surveyed expect their own company to invest in social media as a sales channel within a two year timeframe.

By dragging their heels on investment, insurers are in danger of missing the boat, warned Ms Knight.

Marketforce’s research also reveals that social media will have a big impact in the payment and resolution of insurance claims.

88% of the insurers and brokers surveyed foresee social media channels revolutionising communication during surge events.

David Williams, Claims and Underwriting Director at Axa Commercial Lines, which is already using Twitter to raise awareness ahead of extreme weather events, said: “Twitter is instant. Compare and contrast that with the old approach of changing a website, or worse still having to create and post printed material. The downside is that consumers will expect quicker service than they have had in the past, and insurers using Twitter and other immediate forms of communication will simply reinforce that. And when of course we get things wrong, we can expect the news to spread far more quickly and far more widely than ever before!”

The report was launched at the Marketforce’s 11th annual Future of General Insurance conference that took place in London this week.

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