The Impact of Virtual Reality on the Insurance Industry

The Impact of Virtual Reality on the Insurance IndustryAccording to Insight + Analysis Magazine, “virtual reality” is the umbrella term for all immersive experiences. Also known as immersive multimedia or computer-simulated reality, this technology replicates an environment that simulates a physical presence in places in the real world or an imagined world, as with gaming and training simulations. In virtual reality, users can interact with their virtual world.

As augmented, mixed and virtual realities become increasingly popular and the reality of using these technologies becomes more integral to business, the insurance industry is taking note. In this post, we’re going to explore what these advancements mean for the sector and what you can expect in the future.

With augmented and mixed realities, real world objects and digital ones can interact in real time. But, what does this mean for insurance? Not only does it have the power to change advertising, training and design, virtual reality can also improve customer service.

Across industries, virtual reality is likely to improve customer experience while significantly reducing design and development windows. Growth in the virtual reality userbase will create significant consumer demand for haptics and touch transmission devices, in turn increasing jobs in the design and manufacturing sectors. In other industries, however, virtual reality will reduce employment opportunities by improving operational efficiencies, says the article.

So, what are the down sides to this development? As the programs are still in their infancy, there are going to be obvious cyber risks and room for risk exposures for insurance agents and agencies who utilize this technology. What’s more, privacy and security issues might be significantly compromised by using virtual or augmented reality systems.

Next, modern laws and regulations are not reflective of the technological advancements as of late. The lag time for new regulations to be created and enforced will eventually take a toll on the agencies who use virtual realities. Not to mention, clients who use virtual reality systems might suffer from motion sickness, simulation and cybersickness, which could increase the liability risks for insurance agents.

Finally, it’s expected that smaller insurance agencies will have to raise their premium prices in the future to compete with larger corporations and carriers who can easily afford to purchase virtual reality systems. While this isn’t an immediate downfall of virtual reality, it’s undoubtedly going to reshape the industry in coming years and make it more of a challenge for smaller businesses to keep up.

If you have questions about what the future might bring, or if you’re interested in expanding your business and becoming an agent with Mavon, click here.

 

About Mavon Insurance

At Mavon Insurance, we pride ourselves on our unique approach to insurance. We focus on integrity, communication, professionalism, respect and gratitude to help our clients succeed and place business in specialized markets. For more information about our products, or to become an agent, contact us today at (877) 426-2866.