The metaverse is poised to be the new big thing in the tech world. The metaverse was already worth nearly $500 billion. That figure is expected to rise to a staggering $800 billion by 2024 as more platforms enter the market.
According to Bdeo Research, this emerging market presents a new opportunity for insurance companies. Insurers can already use visual intelligence to assess property and automotive damage without needing to send out an agent (see How Can Insurance Industry Prepare for the Metaverse?). As our technology continues to improve and the metaverse continues to expand, it’s only logical that insurance companies will embrace the metaverse to improve their services.
In futurism and science fiction, the metaverse is a hypothetical iteration of the Internet as a single, universal and immersive virtual world that is facilitated by the use of virtual reality (VR) and augmented reality (AR) headsets.
In colloquial use, a metaverse is a network of 3D virtual worlds focused on social connection. Metaverse development is often linked to advancing virtual reality technology due to increasing demands for immersion. Recent interest in metaverse development is influenced by Web3, a concept for a decentralized iteration of the internet.
What is metaverse in blockchain?
The Metaverse’s goal is to provide people with an augmented reality experience that, in many ways, may surpass physical reality in terms of experiences and opportunities.
Let’s take a look at why the metaverse needs encryption to function correctly. The unhackability and immutability of blockchain are critical properties for any virtual reality technology to gain broad adoption.
Not only does blockchain allow for fast confirmation of information, but it also allows for cryptographically secure and protected transactions. Blockchain and crypto assets are a fundamental and integral aspect of how virtual reality will be deployed.
Building on the previous point, the Metaverse will want and require transactions to be completed on demand, which blockchain and crypto assets can help to enable. There will need to be transactions for an actual virtual reality environment to work and perform as stated.
Blockchain technology will play a key role in the Metaverse, along with other emerging technologies such as artificial intelligence (AI) and virtual reality (VR).
3D Technology, AR and VR assemblies, and sonic systems play an integral role in the virtual gaming industry. Amid the rise of the Metaverse, these technologies have witnessed exponential growth, strengthening their valuation and relevance to the current market.
How remote claims processing currently works with Visual intelligence?
The insurance industry as a whole is a bit behind the times. We still use processes created decades ago when there are newer options out there. The majority of processes are still being performed manually, which can be long and costly. The result? Unhappy customers who will happily switch providers come renewal time (see How Does AI Technology Impact on Insurance Industry?).
100% of those who switch insurance providers do so because of their experience with their previous carriers.
Of those surveyed, 37% wanted faster claims processing, 36% wanted a better digital experience, and 34% were looking for a better personal service. All of these needs can be met by embracing technology and modernizing processes (see Сloud Technology for Insurance Industry).
A modern insurer, powered by technology, can handle claims much faster than those still using manual processes. Customers can gather evidence as soon as an incident occurs with a guided process on their smartphones, allowing them to initiate the claims process as soon as possible.
Visual intelligence will then handle damage analysis and can spot fraud signs within minutes.
How? Reviewing thousands and thousands of images and comparing the newly collected evidence to those images gives a highly accurate assessment of the situation. It can identify and create patterns that help insurers provide the best possible service while minimizing the risk of fraud (see about NFT Thefts and Financial Crime).
The process is capped off by a final assessment by an insurance agent who has the final say over the claim decision. However, if a claimant would like to speak with an insurance agent, they will either need to schedule an appointment to visit the office or have an agent come out to their house for a meeting.
This is a much better process than the insurance industry could offer just a few years ago, but it could be even better.
Improving the underwriting and customer experience
Insurance underwriting is a critical process as it decides the amount of risk the insurance company is willing to take on behalf of its customer. It involves comprehensive assessments of both the object to be insured, as well as the customer’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 receive insurance at all.
But with the adoption of the metaverse increasing, this could change. Document processing and analysis will be completely automated, expediting all interactions between insurance companies and customers. Customers may even be able to leverage their digital assets when securing policies.
How Metaverse will transform remote claims processing?
Let’s say you’re a policyholder waiting to hear about their claim status. You would like to speak to an agent face-to-face to help ease some concerns you have, but there’s little time in your schedule to visit the office (see Metaverse & NFT Market Trends Outlook). With the metaverse, insurers can set up virtual meetings to offer you a face-to-face meeting without needing to leave the house.
Virtual meetings are already the norm for many people. Those who work remotely will be more than familiar with Zoom or Microsoft Teams and the issues they can cause. The metaverse offers a better way to meet virtually.
Insurers can set up fully interactive and immersive meeting rooms to help customers better express themselves through body language and gestures. By using these virtual meeting rooms, customers can feel more comfortable, which helps rebuild their trust.
If an insurer needs more information from a customer, they can quickly set up a virtual meeting to get that information directly from the insured. However, in order for these meetings to help speed up the overall claims process, Visual Intelligence should be a preliminary step. This way, when the agent arrives at the meeting, he already has visual evidence of the claim or vehicle to be insured, as well as the damage conclusions obtained by Visual Intelligence (see How Artificial Intelligence Can Help Insurers).
Of course, as we continue down this hyper-digital road, we must start considering protecting our digital assets (see NFT Use Cases: Digital Artwork, Fundraising, Metaverse). We have already seen cases of NFTs getting stolen from their owners, and considering the value of these digital assets, customers are increasingly looking for a way to protect them.
Insurers in the metaverse can start offering protection on various digital goods and even assess damage in a virtual space
By combining all the new technologies available to us, from visual intelligence to augmented reality, we can start offering more services to our customers (see How Digital Twins Can Help Insurance Industry?).
This includes personalized services, digital asset protection, and a whole new way to interact with your insurer. We can be there for our customers no matter what they’re looking to insure, and if anything goes wrong, we can be there for them with fast resolutions, no matter where they are.
Architecting new insurance reality
Pioneers see the metaverse as a newly open frontier to be settled. These are the risk takers, innovators, and builders who are already pouring billions of dollars into key foundational metaverse technologies, platforms, products, services, content, and other enabling components.
The technologies companies refer to when they talk about “the metaverse” can include virtual reality—characterized by persistent virtual worlds that continue to exist even when you’re not playing—as well as augmented reality that combines aspects of the digital and physical worlds. Loosely defined, the metaverse is a virtual universe where users have access to digital avatars that let them “live” in this digital world.
The metaverse is still in its infancy. But as the technology improves, we’ll start to see real-world examples of how helpful it can be for insurers and policyholders alike.
In the future, we can expect to see the metaverse play a much larger part in the insurance industry.
This is going to make the policyholder experience much better by cutting down on waiting periods with AI-powered automation and providing highly accurate results with no room for mistakes or fraud. All this allows agents to spend more time building real relationships with their customers.
In determining your organization’s metaverse strategy, consider how your customers might be interacting online in 20 years.
How might this consumer behavior intersect with your future business models and capabilities? By evaluating how your company evolved through the Web 1.0 and Web 2.0 eras, you may yield a pragmatic indicator as to when to consider ramping up your investment strategy.
Today business and technology are inextricably linked. And keeping pace with the emerging technology landscape can be difficult for even the most tech-savvy leaders.
AUTHOR: Oleg Parashchak – CEO Finance Media & Editor-in-Chief at Beinsure Media