Virtual reality will transform insurance predicts Novarica

Published: August 29, 2017

Updated: July 24, 2018

Author: Luke Jones

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Augmented, mixed, and virtual reality technology is widely predicted to change our lives. From the way we consume media to transforming industries, it is a soon-to-be booming tech market. Insurance will also gain a major boost from AR and VR, with the tech predicted to make a significant impact.

Among the implications of AR and VR on insurance will be changing risk mitigation, loss ratios, and efficiency. Novarica made the predictions in an executive brief, adding the technology could transform the customer service experience.

The Boston-based advisory firm said these changes will happen over time, but they will happen. In an executive brief, titled Augmented and Virtual Reality: Potential Use Cases for Insurers, Novarica explains how the technology will develop in insurance:

Carriers “are adapting to these recent trends with strategies to approach the market with simplified product sets and the technological capabilities to enable and support a defined, flexible, and well-connected distribution.”

“In an industry as risk averse as insurance, AR has the potential to predict risks either before they happen or as they happen, and VR presents an opportunity to prepare for and model risk in an essentially zero-risk environment,” said Keith Raymond, vice president of research and consulting at Novarica, in the statement. “Insurers should plan to monitor and engage with these technologies in the future.”