Augmented & Virtual Reality in Insurance

Insurance is a large and valuable market; and with new players offering fast, efficient, digital services, it’s also a fiercely competitive one. Traditional insurers are turning to technology – both the enabler and accelerator of digital transformation – to stay relevant to a changing customer base.

Augmented Reality (AR) can make the complex process of buying insurance easier by simulating real-life situations to showcase the value of various life, health and other coverage plans. Far more powerful than a brochure, website or salesperson, immersive simulations can drive home the need to save for retirement, simplify pension planning, etc.

In a similar vein, AR/VR can be used to warn clients about dangers and help them prevent the need to file a claim. By allowing insurers to demonstrate both common and exceptional risks in a virtual, risk-free environment, immersive simulations can improve the safety practices of different types of policyholders. For instance, doctors could use VR to practice on a new machine before using it with real patients, employees could learn to identify workplace risks, and homeowners could learn to prevent floods and fires.

Insurers are also toying with VR incident management and training programs that would give customers a fairer rate (ex. virtual driving tests for auto insurance). After successfully completing such a program, the customer would send her results to her insurance agent, verifying her enrollment and qualifying her for discounts (reduced premiums).

With the ubiquity of AR-capable smartphones, companies today are increasingly incorporating AR into their brand apps and other marketing strategies. Insurers are no exception: AR experiences and VR simulations that create awareness about the importance of buying different types of insurance are part of new marketing and customer engagement plans. In general, insurers are looking to attract and retain new and existing customers by providing informational and entertaining content. This represents a significant move away from the usually distant or aloof position of an insurance company vis-à-vis its clients.

One way to improve the customer experience is to increase an organization’s operational efficiency; for instance, faster order picking in a warehouse leads to faster delivery and higher customer satisfaction. Another way is to focus on those times the customer directly interacts with the business. In insurance, these times are when a customer purchases a coverage plan, files a claim, or contacts support.

In addition to helping consumers understand insurance plans, AR/VR can provide real-time guidance to policyholders on how to fill out claim forms, resolve billing issues, and more. Some insurers are experimenting with virtual customer service (like a virtual support center) and enabling policyholders to interact with adjusters and begin documenting damage in real time through AR. Whether it’s through an individual’s mobile camera or, one day, smart glasses, adjusters can be “on the scene” with the policyholder, reviewing the damages, even taking exact measurements; allowing for faster and more accurate documentation of loss and faster case resolution.