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Social networks have grown rapidly and their social impact is undoubted. The recent Economist special report seems to make a case for engaging in this medium as a business imperative. I remain to be convinced.

The nirvana for all companies is a relationship with their clients which transcends product and is seen as a mutually beneficial interaction based upon trust. Mutuality by its very nature embraces the principles of such a relationship but has in many cases failed to achieve it. Do new communication mediums offer a fresh opportunity for Mutuals to achieve this holy grail of consumer interaction?

The PR blurb that surrounded the launch of More Th>n’s ‘Car Claim’ app for iPhones suggested it was created in response to research showing that 38% of drivers fail to record sufficient third party details in the aftermath of an collision. But is such an app really going to solve this perennial problem for insurers?

These days I rarely meet with a senior executive where digital is not high up on the list of things they want to discuss. Why is this and where did it come from?

As the fog surrounding RDR begins to clear, one fact is becoming increasingly apparent. There will be a sizeable constituency of potential customers who want and need products, have the funds to purchase them but who will not be prepared to pay for upfront advice. So are these people destined to go without the products they need or is there another way?

According to some of the hype, social media will solve all your company's problems, creating fruitful, lasting customer relationships and establishing your brand as the representation of all things good and pure. The barriers to entry are minimal, it is generally low cost to trial, and any fool can easily create a facebook page or kick off a blog. But is the decision to dive in to social media really that simple?

When Derren Brown wowed the nation by correctly guessing six lottery numbers in a live TV show, he claimed to have used the 'Wisdom of Crowds' as the means by which he identified the winning sequence. Great entertainment no doubt, but what has all this got to do with process improvement, risk reduction and cutting the cost of regulation?

The range of social media tools available is huge and growing every day, which means it's never been easier to add social networking to your online presence.

So what's stopping you?

The digital media hype merchants would have you believe that the fact Facebook now has over 300 million users is a sign of a new social phenomenon. In reality of course, communities have grown and thrived since the dawn of time, so are social networks really anything new?