TMCnet News

Insurance Companies Urged to Experiment with Metaverse Technology to Stay Ahead
[April 19, 2023]

Insurance Companies Urged to Experiment with Metaverse Technology to Stay Ahead

TMCnet News

Insurance companies that are quick to embrace metaverse technology to attract tech-savvy customers and talent will gain a significant market advantage, according to Information Services Group (ISG), a global technology research and advisory firm.

During a panel discussion titled 'Insuring the Metaverse: Immersive Tech and the Future of Coverage,' held as part of a webinar produced by Insurance Journal, ISG Director Dennis Winkler emphasized that insurers must focus on product and technology capabilities and take swift action to establish a more tech-savvy and modern image.

Winkler noted that recent college graduates seek careers based in modern technology, but they do not view insurance as a high-tech industry. The metaverse has the potential to transform employee engagement, talent retention, and customer development for insurance companies that leverage it.

Winkler also highlighted the metaverse's ability to bring together remote teams and create new customer interaction opportunities.

Insurers must experiment with the metaverse to determine which approaches work best for them and their customers, according to Winkler. Virtual storefronts, virtual agents, and creative ways of interacting with customers could all be viable options.

Insurers must also be ready to create new products to cover the risks that arise with metaverse expansion, including life insurance, property and casualty insurance for virtual assets, and cyber insurance for metaverse cybercrimes.

However, the infrastructure that supports metaverse technology varies significantly across platforms, creating complexities similar to those of omnichannel customer experience in the physical world.

To deliver an immersive digital customer experience, insurers require a technical backbone capable of delivering consistent branding across all platforms. Insurers must also be careful to examine their comprehensive coverage clauses to determine if digital assets and the virtual world are inadvertently included in policies.

Winkler concludes that insurers who embark on their metaverse journey early will gain the data needed to refine pricing and products quickly. Insurers must build their metaverse plan without neglecting ongoing technology transformation projects, and the quicker they understand this new virtual world, the faster they can evaluate risks and profit from it.

Edited by Greg Tavarez

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