Our esteemed social networking guru, Craig Beattie, recently circulated a
It describes an internet company,
According to the blog posting, the company makes the point that with the emergence of social networks, shareholders will expect companies to use such services to evaluate new and existing hires and reduce the liability of the company from lawsuits, damage to reputation, etc.
Will such monitoring be considered a mainstream risk management technique one day?
Would an insured using such a tool be rated a lower risk than one that does not?
Should the shareholders of an insurance company reasonably expect the underwriting process to include the monitoring of social networking sites, especially for the general liability, disability and workers compensation lines of business?
In the past, such data mining has been blocked by regulators based on privacy issues, but if all this information is willingly made public will those objections still be valid?
Social networking, meet underwriting.
This blog has been reprinted with permission from
Mike Fitzgerald is a senior analyst in Celent's insurance practice, and can be reached at mfitzgerald@celent.com.
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