Making of a New Insurance Industry with AR and VR

By Insurance CIO Outlook | Tuesday, July 30, 2019

AR and VRCompanies in the insurance industry are looking forward to AR and VR for all the right reasons.

FREMONT, CA: Augmented Reality and Virtual Reality have caught the attention of many industries. With the advancement in technology and increasing accessibility, the insurance companies have also found innovative uses of AR and VR. Increased customer satisfaction and enhanced profits can be a direct outcome of applying these technologies appropriately. While AR creates superimposed images and forms on real objects, VR uses 3D graphics to create an immersive experience. In the insurance industry, AR and VR have quite a few potential applications as listed below.  

• Estimating Damages

The insurance industry deals with claims regarding accidents and casualties on a daily basis. AR and VR technologies are ideal for helping recreate the scene of damage very accurately and realistically. This aids in estimating repair costs and hence enables faster and more timely claims processing. When used in conjunction with artificial intelligence and the internet of things, insurance claims processing can become much more streamlined and efficient. Claim adjusters can do a comparative analysis of conditions before and after accidents without being physically present at the site. All of this subsequently leads to better customer satisfaction, as well.

• Explaining and Educating Consumers

Buying insurance can seem complicated. For consumers, insurance companies can make it easier with AR and VR. By stimulating situations, companies can put their point across to the consumers in a better way. Brochures websites and salespersons are less effective than these engaging methods. VR can also be used by companies to determine the premium rates. For example, auto insurance buyers can take a virtual driving test based on which the company will give discounts on premiums.

• Training of Employees

AR and VR can be used to bridge the gap between practical situations and knowledge that an employee in a firm has. Claims processors can undergo practical training with the help of these technologies as teaching and learning through VR and AR is dynamic and can lead to higher retention. The training process also becomes cost-effective, and employees gain skills faster. 

AR and VR technologies can transform a better insurance industry into a radical one. With such wide-ranging uses, insurance companies should look to adopt the applications at the earliest to gain an edge.

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