Insurance technology: the next wave of digital change
The metaverse continuum has arrived, merging real-world and virtual personas, properties, and space in the next evolution of the Internet. Enabled by technology and creativity—and underpinned by human and social norms—the metaverse will enable a spectrum of exciting new products, experiences and business models for the insurance industry. It will bring about dramatic changes in how insurers interact with customers, employees and partners; design products and services; and run their businesses.
Many of the technologies that the metaverse is being built on aren’t novel, while others represent the cutting edge. But what is revolutionary is the convergence of emerging and maturing technologies in the metaverse—including artificial intelligence (AI), augmented and virtual reality (AR/VR), blockchain, digital twins, edge technologies, cloud, digital currencies, non-fungible tokens (NFTs), social platforms, ecommerce, and digital marketplaces. As they intersect, these technologies give rise to innovative ways for people and organizations to interact.
By accelerating their transformations to meet the evolving needs of customers, leading insurers are grappling with a new and different future—that of the Metaverse.
The five year view for insurance
The metaverse will reshape every element of the insurance business over the next five to ten years. Here are some examples of the changes to watch for:
New ways of training the workforce: There are already early adopters in insurance that use VR/AR to train and upskill employees in a safe, controlled environment. We can expect to see them rapidly scale up these experiments as the metaverse comes of age.
New revenue and shifting revenue pools: From mitigating metaverse-specific risks such as digital fraud through to insuring digital assets like blockchain-based tokens and NFTs, expect the metaverse to catalyze new opportunities for insurance.
Distribution in the metaverse: As a distribution platform spanning the physical and digital worlds, the metaverse could bring a more personal touch back into insurer’s interactions with customers.
Just as in the early years of the web, insurers are hurtling toward a future different from the one they were designed for. Within years, we will see a complete transformation of the environment in which insurers operate. Those that have a mature and well-oiled digital engine will be best prepared to participate in and build the new environments and worlds of the metaverse.
With the advancement of the metaverse, the internet is about to embark on its largest shift since companies like Amazon and Google were startups.
Insurance customers’ needs have evolved
The rise of the metaverse answers to the needs of the next generation of insurance customers, who are constantly seeking new and better experiences. Meeting their expectations will demand new ways of thinking. Here we explore the four trends shaping the future of the Metaverse for insurers – WebMe, Programmable World, The Unreal and Computing the Impossible.
1. WebMe—Putting the Me in Metaverse
A new vision is emerging for the internet with the creation of immersive virtual worlds and blurring lines between digital and physical.
2. Programmable World—Our Planet, Personalized
Devices such as AR glasses, car sensors and pipe sensors are transforming how insurers and their customers interact with the physical world.
3. The Unreal—Making Synthetic, Authentic
It’s becoming more difficult to tell apart real and fake. As bad actors take advantage of new attack surfaces, insurers will help mitigate the risks.
4. Computing the Impossible—New Possibilities
Quantum computers will enable insurers to rapidly process large datasets from multiple sources, transforming risk modeling and decision making.
As the developments in the metaverse challenge our basic assumptions about technology and business, insurance companies are entering a new landscape with unknown expectations. It’s time to build and shape the worlds of tomorrow. We would appreciate the opportunity to talk with you about unlocking the opportunities of the metaverse for your business.