Protection providers have denied using social media to snoop on claimants unnecessarily, as new data suggests the majority of consumers think the practice is unfair.
A survey of 1,013 UK adults found that just 29 per cent of insurance customers think it is fair for insurance companies to use social media posts to check the validity of claims while a third were unaware that insurers might use social media when checking claims.
The study of consumer attitudes around data use by insurers showed widespread concern, with 72 per cent of respondents stating that they believe firms do not properly explain the amount of information they can access.
Only 53 per cent believed it is fair for insurers to share information with other companies, while only 28 per cent thought it was fair insurers could check financial status via social media and credit records.
Ian Hughes, managing director of Consumer Intelligence, warned that consumers need to be aware that insurers routinely share data and can use multiple sources to obtain information.
“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 per cent of those surveyed said insurers would vary quotes depending on people’s financial status and 67 per cent believed insurers will do the same with social media.
Chris Pollard, head of underwriting, claims and customer services at Friends Life, said: “Our policy is to pay claims quickly and with a minimum of information needed to establish that the insured event took place.
“We have a broad duty of care to all our customers to ensure that we do not pay fraudulent claims; in order to do this a small minority of claims that appear suspicious may be investigated more thoroughly.”
An LV spokeswoman stated that using such information was not routine, adding: “We don’t currently vary quotes based on individuals financial status and LV would only use social media if there are suspicious circumstances regarding a claim.”
A Zurich spokesperson said that the firm would not rule out considering information that is freely available on the internet, but it would be an unusual step.
“We would only consider looking at what might have been published on-line in cases where we have a suspicion of fraud, for example if a claimant is reluctant to supply information or the pattern of their behaviour doesn’t fit with the nature of their illness - reporting to be house bound but not answering any calls.”
The spokesperson continued: “We would never end an income protection claim or decline any other claim on this information alone, but would look to use this to build up an understanding of the claimant and his or her circumstances.”
peter.walker@ft.com
