Photo for illustration. (Photo: Kamil Pietrzak via Unsplash)
Before you post that photo, video or entry of your expensive diamond ring, parachute expedition or chase in your shiny SUV on social media, be aware that it might affect your insurance premium.
In some cases, these posts can even lead to the cancellation of your insurance.
Peter Olyott, CEO of the financial services company Indwe Risk Services, says social media offers all kinds of new opportunities for insurers to collect data from policyholders.
“With the large amount of personal information shared on social media platforms, insurers can use this information to better understand their policyholders’ behaviour, lifestyle and risk factors.
“By being aware of how your social media behavior can affect your insurance risk profile, you can protect yourself from disputed claims,” says Olyott.
He explains that if policyholders post photos or entries that show, for example, expensive items such as jewelery or electronic equipment in their homes, this could potentially make them a target for theft and consequently affect their home insurance cover.
Posts about your driving behavior, such as speeding or driving under the influence of alcohol, can not only lead to increased car insurance premiums, but even to the cancellation of a policy.
“When it comes to your health condition, posting about it on social media can potentially affect your health insurance coverage, as insurers can use this information to determine your risk level and then adjust your premiums accordingly,” says Olyott.
“Similarly, your life insurance cover and premiums can be affected if you make entries about high-risk activities, including adrenaline sports or skydiving.”
Protect your coverage like this
Olyott says policyholders can protect their insurance policies by being more careful about what they share on social media.
He advises policyholders to avoid postings about durable items and high-risk activities.
Photo for illustration. (Photo: Erik Lucatero via Unsplash)
“If you do feel the need to share your lifestyle on your social media platform, try to do it after the event rather than while you’re on your way to your next destination.
“Adjust your privacy settings on social media platforms to limit the amount of personal information that is publicly visible. Review your insurance policy and talk to your insurance provider about how social media can affect your coverage.”
Olyott further recommends that policyholders play open cards with their insurers regarding any changes in their lifestyle or behavior that may have an effect on their cover.
This includes a new job or a new hobby.
He also warns that when policyholders post information on public social media platforms, it can be shared more widely by other users, and consequently seen by a larger audience.
Policyholders must also guard against making controversial posts or sharing inappropriate content, including racial, gender, religious, political or sexual content. Even inappropriate comments on social media can apparently land policyholders in trouble.
“Sharing personal information on social media can have unintended consequences on your insurance. By being mindful of the information you share and regularly reviewing your insurance policy, you can help protect yourself and your coverage.”
