Life insurance carriers are increasingly turning to social media technology as a means for providers to pursue lead generation and community building, according to industry marketing and distribution research executive Todd Silverhart.

Discussing a survey performed earlier in the year, he said 25 percent of the surveyed companies are using social media initiatives this year, compared to 20 percent last year. These public platforms serve as tools for brand management and community building, and in some cases are used to encourage collaboration.

One activity businesses engage in is online listening, which consists of seeing what consumers say about providers and their competition. This can be a means to locate and repair problems.

Despite some concerns about compliance issues, more companies are turning to social media because of the potential competitive advantage. The Financial Institutions Regulatory Authority has weighed in on the matter, offering advice on compliance issues. Insurers, state insurance departments and the Federal Trade Commission are all examining these suggestions.

Ideally, for insurance providers, social media research can be leveraged into a means of reaching customers, as well as a way to determine what consumers want, need and think.