6 Applications of AR in Insurance Industry

In the case of an unforeseen or unanticipated event, receiving immediate customer support and claim settlement reduces the potential for customer churn during critical customer touch points. However, these processes are time-consuming and iterative. For example, typical claims settlement entails inspection, documentation, submission of documents and proofs, and finally settlement.

 

Augmented Reality is one technology that we are keeping an eye on right now. It is becoming more accessible, and we believe it holds great promise for the future of property insurance. 

 

Fortunately, using Augmented Reality (AR) technology, all of these stages can be transformed with near real-time analysis. Augmented Reality augments the real world by utilising real-time digital content such as audio, video, text, and images. Below, we define augmented reality and outline some of the benefits that we are already considering.

 

 

What Is Augmented Reality (AR)?

 

Before we get into the possibilities of augmented reality, it's probably best if we first define it. Augmented reality, also known as "mixed reality," is a method of blending the physical world in front of us with virtual objects and information. It is usually viewed through a screen or some kind of lens, which makes the virtual object appear to be in the real world.

 

Many people are probably familiar with Pokemon Go, the mobile game phenomenon that swept the world by storm in 2016. This game used augmented reality to allow players to capture Pokemon monsters in the real world that were only visible through the screens of their mobile devices. 

 

Not only can AR improve claims, but it can also improve customer service, damage estimation, remote guidance, and customer education.

 

Recommended blog: 7 Trends of Augmented Reality

 

 

Applications of Augmented Reality in Insurance

 

Insurers aren't the only ones who could benefit from augmented reality.

 

They can use augmented reality to warn clients about potential hazards, estimate damage, and explain insurance policies. They also use augmented reality for marketing analytics and brand promotion. For insurers, now is the time to take advantage of this new technology in order to address these pressing issues.

 

 

1. Risk assessment & mitigation

 

When it comes to risk assessments, augmented reality opens up a number of possibilities to reduce costs. It adds elements to the visual environment, such as textures and colours. Customers' behaviour and intent can be analysed using this technology.

 

CIRP and Diagnostic Driving Inc. have developed Ready-AssessTM to assess a driver's ability to drive safely and avoid collisions. When it comes time to take the on-road exam, the Ohio Department of Public Safety plans to use the system as a pre qualifier.

 

Insurance companies are now considering virtual driving tests to determine whether a driver is a safe one before issuing a policy to that individual.

 

 

2. Remote guidance to agents and employees

 

Former Global Head of Learning Design and Lead of Zurich Leadership Development Curriculum, Dr. Daniel Neubauer explains  “The challenge with training 50 people is how you direct them.”  Augmented reality allows people to take control of their own destiny"

 

Work more efficiently, safely, and collaboratively with AR glasses, says Zurich Insurance. As a wearable, it is a great alternative to laptops and paper instructions.

 

Also read : AR in Hospitality

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Applications of Augmented reality in insurance

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3. Explaining Insurance Plans

 

These days, a number of Insurance companies are using Augmented reality, and they've created a mobile AR application that explains people's retirement goals and Insurance plans when they select certain options.

 

 

4. Improving Advertising Campaigns 

 

It provides users with significant entertainment value through its interactive nature and extensive marketing opportunities. The use of 3D models by insurers to promote their services can be facilitated by encouraging users to share their augmented reality experiences with their social networks. As a new marketing tool for insurance companies, AR simulations are gaining popularity. Customer education and marketing go hand-in-hand.

 

Recommended blog - Digital Marketing Tools

 

Liverpool Victoria, one of the UK's largest insurance companies, uses newspaper flyers and AR technology to communicate with customers. Flyer becomes a 3D house model when it's scanned. Insurable items in the house can be explored further by customers. It gives them an idea of how to protect their belongings, which they may not have thought of before.

 

Allianz, a German international financial services company, is another interesting use case of augmented reality in insurance. For their users, they've created an immersive experience in which they can learn about the risks they might face in their daily lives.

 

 

5. Damage Estimation

 

An insurer's use of augmented reality technology can help them overcome the operational challenges that result from physical distance. By overlaying images of the object before and after an accident, technical specialists can estimate the damage volume.

 

Adjusters can measure the dimensions of damaged parts and calculate repair costs based on the information they've collected and compiled. As a result of AR-enabled solutions, inspectors can literally see behind walls to locate gas lines or fire epicentres.

 

The AssistXR Remote Assistant is powered by AI and augmented reality and allows customers to send their insurance claims in real-time. Insurers can use this tool to inspect the damaged property from a distance. Policyholders and insurers can collaborate in real-time in Augmented reality over a computer vision enabled video call with Remote Assistance.

 

As an insurance expert, the primary benefit of this solution is the ability to precisely estimate the damage without having to be physically present in the area of the damage. In this way, they can be sure that the claim details are accurate and not overestimated by a policyholder in order to get a larger payout.

 

(Must read: AI and Augmented Reality in Pinterest)

 

 

6. Training using Mixed Reality

 

An effective tool for training employees on internal processes and business functions, AR-based applications are available today. As a result, not only would the need for experts be reduced, but also the cost of enterprise administration would be reduced. As a result, policyholders may be more aware of safety and security issues.

 

As part of enhanced risk mitigation initiatives, insurers may also use these tools to ensure that homes are protected from hazards such as fire, wind, theft, and other threats.

 

Related blog - Risk Management

 

The process of settling a claim for property damage is often time-consuming and complex. Insurers send a representative to inspect the property, estimate the damage, and process claims. By approving claims through video calls, some insurers like ICICI Lombard tried to speed up the process. But augmented reality can give remote customer service a whole new dimension by providing more accurate information.

 

Customers can speak to a virtual assistant- Khushi in a 3D simulated room with PNB MetLife's ConVERse application. Information, service requests (such as account updates), claims, and feedback is all accessible through the site.

 

Using augmented reality, insurance companies can offer their customers a new way to interact with them and encourage them to choose a company that offers a more interactive experience.

 

 

One way or another, investing in augmented reality is a good idea. Whatever application you choose, will help you stand out in this highly competitive market and gain word-of-mouth referrals.

 

 

The future of AR in the insurance industry

 

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Future of AR in the insurance 

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AR in insurance: Companies can use augmented reality to innovate and drive value in a variety of ways, including the ability to make real-time decisions, deliver interactive, useful and entertaining content in a new way, and increase customer engagement.

 

Augmented reality (AR) is not widely used in the insurance industry, but it can provide many opportunities for companies to become more competitive and attract more customers with its many benefits.

 

Tracking and navigation systems can augment real-time data to help people better understand the surrounding conditions, such as potential dangers on the road, other vehicles’ speed, signboards, weather, or traffic. It will ensure safer driving and, as a result, will help insurers save their funds on claim compensations.

 

When it comes to communication with customers, insurance agencies often behave distant and aloof while being tied with their traditional methods and channels of interaction with their target audience. Insurers such as Allianz and AXA are already being affected by the emerging technology of augmented reality.

 

 

Conclusion

 

In order to remain competitive, small and medium-sized (S&M) insurance companies should explore and adopt new technologies such as augmented reality. They have a difficult time competing in this market, as they are rarely able to offer lower insurance prices or larger payments.

 

They should find new ways to attract a new generation of young adults, or even existing clients of leading insurers, by developing new products and services. "Augmented reality"  is one of those new-age technologies that can give insurers a competitive edge by providing a modern way to interact with customers.

 

The use of augmented reality technology, on the other hand, can provide insurance companies with a new method of engaging their customers and encouraging them to choose a more interactive company.

 

Other industries, such as gaming and retail, have taken a step further in exploring AR technology. Insurers will take the lead in deploying augmented reality when it becomes a mainstream technology. In the near future, we may see new and more effective AR applications in insurance.

 

Examples include the use of drones to help adjusters perform remote damage assessments by measuring the dimensions of damaged property areas.

 

No matter how you look at it, Augmented Reality is a worthwhile venture.