Metaverse is a general term that refers to a multitude of technologies, some of which include augmented reality (AR) and virtual reality (VR). The idea is that we can perform regular activities like shopping, meeting people, etc. in a digital space that does not physically exist.
Although the idea of the metaverse has picked up recently, it’s not as new as it seems. It actually dates back to 1968, when Ivan Sutherland built the first VR machine at Harvard, and its adoption in industries like gaming and shopping is already widespread.
What’s new is the rise of industries such as insurance, finance, retail, and many more entering the metaverse. Gartner predicts that by 2026, 30% of organizations will have metaverse-ready services and products. Additionally, a Bloomberg report indicated that by 2024, the metaverse market will reach $800 billion.
The market is ripe and many organizations are jumping into this trend and leveraging it for their business.
The pandemic has given digital technologies a huge boost, and the insurance industry is no different. Gone are the days when customers preferred to meet insurance agents in person to purchase coverage or obtain damage assessments.
Now they are used to receiving information at the speed of light, and rightly so. Everything is available online, so why not the insurance process?
As the use of AR and VR technologies continues to accelerate, insurance companies may be able to perform more critical operations in the metaverse. Here’s a look at what the insurance industry could look like in the metaverse and how it could help increase efficiency and engage customers.
1. More advanced complaint handling
One of the most significant trends driving the insurance industry into the metaverse is the proliferation of remote claims handling. Insurance companies can already easily assess property or automobile damage without being physically present thanks to technologies such as visual intelligence. These technologies help insurers examine damage remotely at the pixel level, assess risk, and process claims much faster and more accurately. However, human intervention remains important when the client requests it and in the most serious cases.
While visual intelligence can take care of detecting damage and estimating repair costs, there will always be times when customers ask to speak to someone. These cases could soon move to the metaverse, allowing insurance managers or adjusters to perform damage assessments remotely with all the necessary data, then meet with customers and talk to them virtually in a space or room. designated for the underwriting process, to negotiate rates. , and more.
This virtual option could help add more context to more complex cases while helping insurers maintain customer confidence and satisfaction. In addition, it saves time and resources for both the insurer and the insured. Even with the automation of many steps in the claims process, customers can still have instant access to a real person in the metaverse.
2. Improve subscription and customer experience
Insurance underwriting is a critical process as it determines the amount of risk the insurance company is willing to take on behalf of its client. This involves comprehensive assessments of the object to be insured, as well as the client’s background and history. In the metaverse, underwriting meetings could be conducted in virtual spaces.
Many consumers still have a negative perception of the insurance industry due to inaccurate damage analysis, slow claims processing times, and even an inability to obtain insurance. But with the growing adoption of the metaverse, that could change. Document processing and analysis will be fully automated, accelerating all interactions between insurance companies and customers. Customers may even be able to leverage their digital assets when securing policies.
3. Workforce training
Contrary to popular belief, neither AI nor the metaverse is likely to take over the work of an underwriter or insurance agent any time soon. Instead, these technologies could be used to train employees from anywhere and help them perform their jobs more efficiently.
Anyone can already experiment with AR and VR technologies to learn how to value a vehicle or property. They can learn how to capture the right images or video and compare them with existing ones, while reducing error rates and helping insurers understand the real impact of risk and damage assessment in a controlled environment. .
How can insurers prepare for the metaverse?
As with any new technology, it is normal to be wary of it at first or to consider it a passing trend. However, just as AI has already made its way into almost every aspect of the insurance industry, chances are the metaverse is next.
Here are some ways insurers can start preparing their operations for the metaverse now:
1. Invest in AI-powered solutions and understand them
AI automation tools are already commonplace in the insurance industry. Now is the time to think about how to combine them with the metaverse. For example, to accurately assess damages in real time and process insurance claims in minutes instead of days.
2. Experimental tests with AR/VR technologies
Start with small training sessions to test the beta and understand whether or not AR and VR technologies can help improve processes. Another way to gauge their usefulness is to hold a few meetings in the metaverse. This will help stakeholders understand the basics of these technologies and generate insights that could be used to improve the customer experience.
3. Monitor the metaverse in parallel industries
One way to keep up with the evolution of technology is to monitor its use cases in parallel industries, such as finance and retail. This can help organizations understand how to apply these technologies to internal and external processes and stay ahead of the competition.
Embracing the Metaverse isn’t a matter of if but when. Businesses should make an effort to understand the basics of the Metaverse now, as well as its potential use cases in the insurance industry. Remember that data must be carefully managed when transported in virtual spaces due to increased security risks. Companies will need internal teams that truly understand the implications of technologies like computer vision, machine learning, artificial intelligence, and big data, and how they can all work together in the metaverse. And those who invest the time and effort will undoubtedly be ahead of the rest.
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