How Insurance Industry is Using VR and AR
Augmented reality (AR) obviously cannot transform the whole insurance industry. However, AR technology has the potential to change the way insurance services are promoted significantly.
By exploring and adopting this AR technology, companies strive to get a competitive advantage over other market players. The insurance industry is no exception. VR insurance, and AR in insurance – these technologies are the beginning of the industrial revolution. The use of immersive technologies has been rapidly growing and XR (Extended Reality) is becoming a focal point for most modern insurance companies. It is increasingly leveraged to provide solutions that address current issues.
⚠ How Exactly Can Insurers Benefit From Augmented Reality and Use It as an Effective Sales-Driving Tool?
As AR and VR products and services become more widely accepted by society, a range of major risks are likely to evolve, including information security, privacy violation, virtual harassment, and motion sickness. All these risks need to be considered when making underwriting decisions.
It is believed that this is just the beginning of losses related to AR and VR. By swiftly addressing growing customer concerns, the insurance industry has a potentially significant revenue opportunity. Existing applications include Australia’s NRMA Insurance and the US‘s Liberty Mutual Insurance using car crash and breakdown simulations; Zurich Insurance providing staff training; and Axa Insurance using VR as an advertising tool.
Some insurers use machine vision in areas like claims damage assessment and risk mitigation for personal property. Augmented Reality in the insurance industry allows the assessment process to happen in real-time while incorporating information like condition, building materials, or damage potential. It is used for customer education, risk mitigation and loss control, guided underwriting or claims adjusting and assessment. The technology may be helpful in predicting risks either before they happen or as they happen for both. It can also help customers identify and avoid risk in real time by educating them and incentivizing less risky behavior.
How is VR transforming the insurance industry?
VR has the potential to simulate workplace environments. Also, thanks to VR, insurance carriers can connect with customers, train teams, and gather information easier than ever, no matter conditions and location. One might say that VR is transforming insurance. How?
🔸 Risk assessment and underwriting are enhanced – insurers learn more thanks to a fully immersive environment, safety and efficiency are improved. Insurers can replicate any environment or simulate any potential situation. This leads to more informed insurance decisions.
🔸 Customers are more engaged – today’s customers are hungry for customization and efficiency. And VR in insurance has the potential to deliver this, improving the way insurers engage with customers.
🔸 Claims experiences are improved – compensation claims are more and more often handled by bots which speed up the assignment of new claims.
Stats show that Virtual and Augmented Reality might be an amazing value for virtual insurance offices. Virtual branches make it possible for customers to interact with the consultant through video or even a hologram. Virtual offices are proven to have a higher conversion rate when compared to e.g. call centers and customer satisfaction is also higher. A great benefit is the opportunity to collaborate with experts from various fields of the insurance industry. They can discuss particular cases and solve urgent issues in virtual meeting rooms which reduces costs by up to 50%.
Enhanced customer service
The client who suffered in a situation that requires insurance has to wait for the agent to come or even pay some additional costs. VR and AR in insurance make it possible to provide real-time assistance which speeds up the entire process. When it comes to customers, it is worth mentioning about education that is boosted by advanced VR and AR technologies.
Damage visualization made easy
Better damage estimation based on VR and AR models and simulations is one of the most important benefits of AR and VR in insurance. Investigators can evaluate post-disaster damage from a safe distance by using 3D footage for ‘up-close’, virtual exploration of the area. Technical specialists are able to understand the damage volume by overlying object images representing the object condition before and after the accident.
Improvement of risk assessment
Thanks to Augmented and Virtual Reality, insurers or underwriters can explore an entire building via visualization or simulation derived from on-site images and building schematics to look for conditions that might pose a safety hazard.
Documentation processes made smooth
Augmented Reality provides remote assistance and enables the reduction of visits by insurance agents to places where issues might have occurred. This makes extra paperwork unnecessary and saves work time.
First and foremost, Augmented and Virtual Reality helps provide precision and safety and these play a significant role in liquidating accident consequences. Technical experts are able to remotely guide juniors e.g. marking necessary areas on a mobile device built-in screen and add some useful tips.
Improving advertising campaigns
Augmented reality offers interactive experience and extensive marketing opportunities that provide users with significant entertainment value. Insurers can use 3D models to promote their services by encouraging users to share their augmented reality experience with others.