Augmented reality new go to weapon for insurers

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Uses for augmented reality in insurance are growing, with demand for the technology turbo charged by the need for remote inspections due to covid, GlobalData says.

The technology has a role to play in meeting emission-reduction targets and addressing rapid digitalisation among younger generations, a new Augmented Reality (AR) in Insurance report says.

Analyst Amrit Dhami says covid required insurers to start using the technology in the form of in-depth remote inspections via a live video stream with customers. This allowed marking of specific points and measure real-life distances on-screen.

When a risk engineer or adjuster is needed onsite, AR smart glasses can be used by off-site colleagues to minimise the number of agents required at the claim site, while maintaining collaboration, Mr Dhami said.

“The pandemic has left a legacy of remote operations and it’s no wonder considering how this can significantly reduce travel time, costs, and emissions for firms,” he said.

“For insurers, inspections at service platforms will continue to streamline the claims process and allow insurers to provide better customer service.”

The technology helps insurers simulate real-life disasters and estimate associated damage and repair costs.

Insurers can overlay AR imagery on a room or environment to estimate the extent of damage from flooding, landslides, or other natural disasters.

GlobalData says showing customers how far flooding from a burst water pipe in their basement could spread can reveal assets most at risk of being damaged to reduce avoidable claims.

Insurers can also use AR glasses to safely survey damaged sites after catastrophic events, overlaying blueprints or floor plans on an agent’s field of vision so they can locate water pipes and gas lines safely.

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GlobalData says AR is also a key tool for maintaining market share among younger insurance customers.

“Insurers can use AR to jazz up their advertising campaigns and provide entertaining in-app services to attract younger customers and fend off insurtechs,” Mr Dhami said.

“Today’s insurance customers, many of whom are members of Generation Z, expect more engagement and innovation from their insurers than has traditionally been the case.”

GlobalData will present a ‘Tech in 2030’ webinar on September 14 at 4pm BST. Register here.