Augmented reality (AR) and virtual reality (VR) are among many evolutionary technologies making inroads into conversations at all levels of technology leadership. These separate and distinct technologies may ultimately represent another channel through which insurance companies can serve digitally immersed stakeholders. They have potential real-world implications that span risk mitigation, improved efficiency and loss ratios, enhanced customer experience, and in this example, the potential power of healing.
The technology evolution in insurance continues… A recent article in Property Casualty 360 described a group of companies consisting of a P&C carrier, hospital, and tech company that are collaborating on an application for virtual reality to help manage chronic pain related to workplace injuries. They are looking to research the effectiveness of digital pain-reduction using therapeutic virtual reality and wearable technology. They see this as a potential alternative to opioids, which have caused addiction rates to skyrocket in the US, and which can also mask pain, thus making recovery more challenging. The VR approach is a non-pharmacological supplement to managing pain.
We are seeing the advancements in virtual and augmented reality start to evolve significantly in insurance in both real world applications and innovation. The world as we know it will continue to change fairly rapidly as the trials and research broaden in all aspects of insurance with healthcare and property casualty leading the charge. Smart-glasses, VR headsets, and smartphone applications have helped to disperse AR and VR to the masses, and consumers are increasingly growing comfortable with this technology. Even so, AR and VR are still very much “in the lab,” and their applications to insurance are mainly speculative, with few pilots to date. Regardless of impact, taking advantage of this and other emerging technology requires investment in robust digital, data, and analytics capabilities. Though the technology is still in its infancy and can be quite expensive to build and deploy, a number of companies are working on making AR and VR more accessible to large organizations and consumers. As these technologies advance, they will become more accurate at measuring and rendering, thus getting closer to becoming viable.
The effects of VR and AR on the insurance industry will be most impactful over time, and their potential to influence and enhance the customer experience is thought-provoking. Insurers should plan to monitor and engage with these technologies in the future. Exciting times lie ahead.
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