Page 21 - Insurance Times May 2024

sports injuries, or pre-existing conditions, leaving them fi- the specifics of coverage details and exclusions. Imagine a
nancially vulnerable in case of an unexpected health con- health plan promoted for its "unlimited wellness consulta-
cern. tions," but the fine print reveals limitations on the number of
covered visits or excluded specialists. This lack of transpar-
Example 2: Travel Blogger and Travel Insurance ency can lead consumers to believe they're getting compre-
A travel blogger you follow frequently raves about a new hensive coverage when, in reality, crucial gaps may exist.
travel insurance plan, emphasizing its user-friendly app and
affordability in their vlogs. This might convince someone Downplaying Risks: Influencers might downplay the poten-
planning a dream vacation to purchase this plan. However, tial risks associated with not having proper insurance. They
the plan might not cover crucial aspects like trip cancella- might focus on the excitement of a new travel adventure
tion due to illness, natural disasters, or lost luggage, leav- or the thrill of starting a business, neglecting to mention the
ing them exposed to unforeseen circumstances. financial devastation that could occur without adequate
insurance. For example, a travel blogger promoting a travel
Example 3: Entrepreneur and Engineering Insur- insurance plan might showcase breathtaking vacation foot-
age, glossing over the possibility of trip cancellations due to
ance illness or lost luggage that could leave them financially
Imagine a successful entrepreneur you follow who frequently stranded.
shares their innovative business ventures. They partner
with an insurance company to promote a specific "engineer- Focus on Lifestyle, Not Needs: Influencer content often re-
ing insurance" plan, emphasizing its affordability and online volves around aspirational lifestyles and achieving specific
management. This might entice aspiring entrepreneurs to goals. This focus can overshadow the crucial need to assess
choose this plan to protect their businesses. However, the individual insurance needs. An entrepreneur, inspired by an
plan might have significant exclusions, lacking coverage for influencer's success story, might rush to purchase a pro-
product liability or intellectual property protection, which moted "engineering insurance" plan without considering
could leave them vulnerable to lawsuits if their product their specific business needs or potential risks. This could
causes harm or someone steals their ideas. leave them vulnerable to lawsuits or financial losses not
covered by the limited plan.
Example 4: Homeowner and Fire Insurance
A home improvement influencer you follow showcases cap- Lack of Expertise: Many influencers lack in-depth knowl-
tivating renovations. They partner with an insurance com- edge about the intricacies of insurance products. Their rec-
pany to promote a "basic" fire insurance plan, highlighting ommendations might be based on superficial factors like
the low cost and quick online signup process. This might brand partnerships or catchy marketing, not a true under-
convince homeowners to purchase this plan. However, the standing of coverage limitations and exclusions. This lack
plan might have limitations on coverage for specific types of expertise can lead consumers to make crucial financial
of fires (e.g., electrical fires) or valuable possessions like jew- decisions based on misleading information.
elry or artwork. In case of a fire, this could leave them strug-
gling to rebuild financially. By understanding these potential pitfalls, insurance consum-
ers can navigate the world of influencer endorsements with
The disturbance explained: How influ-

encer content creates insurance confu-
sion

The influencer effect, while seemingly innovative, can wreak
havoc on insurance consumers by creating a distorted un-
derstanding of complex insurance products. Here's how in-
fluencer content can be problematic:

Unrealistic Portrayals of Coverage: Influencers, focused on
creating engaging content, often paint a rosy picture of in-
surance plans. They might highlight low premiums, user-
friendly apps, and trendy features, neglecting to delve into

20 May 2024 The Insurance Times