Augmented reality(AR) has emerged as a potent application recently in our technology-driven era. Augmented reality superimposes computer generated elements onto our real-world environment enhancing our senses and perceptions of virtual things. It acts as a bridge between the physical world and digital enhancements. AR holds immense potential to transform almost every department of the world, from health to retail, by seamlessly integrating technology into daily live activities. And the insurance industry isn’t immune to it either.
The insurance industry is traditionally viewed as a market that’s slow to adopt modern technologies but we have started to see the implications of augmented reality here as well. This article explores how AR is utilized in the insurance sector and what potential implications can it find in the future.
Potential Applications of AR in the Insurance Industry
The insurance industry is rooted in managing risks and processing claims. AR can transform its various daily tasks within this industry making these processes more streamlined and efficient. So let’s talk about these applications.
Risk Assessment
Risk assessment and underwriting are one of the core functionalities of the insurance industry. AR can revolutionize this process by enabling insurers to better visualize and understand risks in property insurance. AR apps on smartphones or tablets enable insurance agents to carry out more accurate and efficient on-site assessments without the need for manual work.
For example, if insurance agents are inspecting a building, they can use AR-enabled devices to overlay structural, environmental, and historical data onto the building. This can provide a better understanding of potential vulnerabilities such as flood risks, structural defects, fire hazards, or crime risks in the surrounding etc. This information can help insurers make informed decisions when underwriting policies reducing their exposure to risk.
Claims Processing
The claims processing is a cumbersome and time-consuming task as adjusters have to make frequent on-site visits. AR can accelerate this process too. Instead of relying solely on physical inspection, adjusters can use AR-enabled devices to visualize property or vehicle’s original condition and superimpose it on the damaged condition. This can allow a better estimate of damage extent and repair costs.
Moreover, customers can initiate claims with the help of AR by sending pictures and videos and adjusters can remotely assess them. This can save time and costs involved in on-site visits.
Augmented reality is a ground-breaking technological advancement that can transform several industries including insurance.
Training and Education
Training insurance agents effectively is critical for the company. AR can be used to improve employee training through immersive simulations of various scenarios such as property inspections, accident scenes, or claims negotiations. AR can help make their learning more interactive and efficient.
AR can also help as an educational tool for policyholders. It can help them understand the nuances of their coverage in an engaging way. For example, customers can use AR apps to learn more about specific coverage details of their policies. They can do this by scanning items within their homes or vehicles, inquiring about what aspects are covered or claim limits.
Customer Service and Engagement
Creating a pleasant and personalized customer service experience is the need of every business. AR can redefine customer service in the insurance industry by offering engaging touchpoints. For example, imagine a virtual “try-before-you-buy” experience. This can help customers visualize the impact of various insurance products on their lives through real-world scenarios.
AR can also be integrated with customer service platforms. When a client contacts the insurer for support, agents can use AR to visualize specific policy details. This can help in quicker issue resolution and a more personalized customer experience.
All these applications can make the insurance industry more efficient and point toward a bright future of augmented reality in the education sector. Now that we have discussed what are the potential applications of AR in the insurance sector, let’s briefly discuss what benefits can these applications bring to the table. As AR isn’t that widespread and developed, implementing it in the insurance industry has its challenges too. So let’s have a look at them too.
Benefits and Challenges of Implementing AR Industry
Benefits
Efficiency and Cost Reduction: AR streamlines the time-consuming processes of risk assessment and claims processing. It also reduces the need for on-site visits and facilitates remote services. This can reduce the cost involved in the process and make the system much more efficient.
Improved Training: As discussed, AR improves the training and development of new staff. It makes them more knowledgeable and prepared for real-world scenarios.
Better Customer Satisfaction: AR makes customer service more transparent, personalized, and user-friendly. This improves customer engagement and higher brand loyalty.
Challenges
High Upfront Costs: Implementing AR technology can be expensive. Developing AR applications and providing compatible devices for employees and customers can cost a decent sum of money.
Technical Issues and Integration: As this is a new technology, integrating it into our existing outdated systems can present technical challenges. Companies need to invest time and resources to overcome these compatibility issues.
Data Privacy and Security Concerns: AR collects, stores and analyzes personal data and images during its function. This can raise concerns about data privacy. This calls for the need for insurers to invest in robust security measures to ensure data protection.
User Adoption and Change Management: Insurance companies, employees, and consumers, aren’t used to using AR for insurance-related issues. This can pose difficulties in implementing AR effectively.
Conclusion
Augmented reality is a ground-breaking technological advancement that can transform several industries including insurance. AR can accelerate and streamline various aspects of the insurance process like risk assessment, claim processing, and training staff. The efficiency of AR promises numerous benefits like reduced costs and better customer satisfaction. This technology is new and its implementation faces various challenges like high upfront costs and technical and compatibility issues. However, with the advancement of this technology, it is estimated to be more widely and efficiently used in the insurance sector.