Immersive Technology to disrupt insurance sales and services | HCLTech

Immersive Technology to disrupt insurance sales and services

Immersive Technology to disrupt insurance sales and services
October 07, 2022

From landline phones to smartphones and web 1.0 (read only web) to web 2.0 (participative social web), human interactions have evolved over the years with the evolving technological changes. Often driven by convenience and economic growth, these changes impact how businesses interact with customers and vice-versa.   

Interactions between insurance buyers and agents, brokers, or financial advisors are expected to witness a massive change in the near future as well, as a result of the evolutionary leap in technologies.

The insurers have already transformed the front-end communication channels, but the front-to-back digitization—one that fuels effective and rapid front-end communication is giving sleepless nights to the insurance IT teams. These technologies and associated initiatives include:

  • Platform modernization/platform replacement to reduce the turn-around time of launching products and servicing customers
  • Enterprise architectural transformation to be future-ready in terms of seamless integration
  • Group or enterprise-wide support systems transformation to increase efficiency and resource utilization
  • Cloud transformation and migration–to increase economies of scale
  • Data and analytics platforms strategy and implementation to improve pricing and underwriting and claims fraud detection
  • Process simplification and automation for straight-through process, improving efficiency, and reducing cost
  • Regulatory and compliance reporting and adherence to be resilient

While these technological progressions are already happening across the industry, immersive technologies are emerging with an intent to create new interaction settings in the virtual world.

By implementing immersive technologies, insurers can elevate the digital visualizations and experiences of the buyers and simultaneously add value to sales

By implementing immersive technologies, insurers can elevate the digital visualizations and experiences of the buyers and simultaneously add value to sales and service functions with new content, experiences, and applications.

Let us go through some sample use-cases with scenarios:

Use Case – An individual (Gen-Z) uses metaverse insurance to play a racing game integrated with a points system purchased via digital currency.

  1. While he/she starts the game, they can get a notification to get a car insurance policy and premium, with a condition - if the person gets three crashes in the game, they can claim lost points due to crash, based on pre-defined conditions (helping the person to understand how insurance terms and condition works).
  2. Insurers give an option for a gamer to get a discount on the premium. For instance, in the first five trial runs, if the person completes the race without accident, they will get discounts (helping the person to know the value of risk and discounts).
  3. If they have already earned more points by driving more games, then they can redeem those for taking discounts (helping the person to understand how experience can help him to save premium costs).
  4. During an accident in the game, the person will get additional points or chances, the points can be paid by the insurance company to the gaming company for enabling this (helping the person to know how an insurer can help during a need situation).
  5. The insurer can demonstrate how one could have played well by aligning with the gaming company (helping the gamer with more confidence and knowledge).
  6. If the person has earned sufficient bonus points over a certain limit in the game, they could be offered an option to redeem the points for real car insurance (helping the insurer to get new customers based on loyalty and tap the business opportunity).
  7. Real agents/brokers or financial advisors can get an alert notification to be in the metaverse itself to have a conversation and upsell other insurance products such as life insurance, accident riders etc., (helping insurers to increase policy holding ratio).
  8. In case of dispute, the gamer can simulate the real accident in metaverse to get the claims assessed by the claims adjuster and get the bank credits notification on his mobile instantly! (Helping the insurer to rapidly increase customer experience and loyalty).

Though it is still in ideation phase, the use cases are being made real; insurers just need to step forward to collaborate with next-gen technology partners like HCL Technologies. 

We are currently developing metaverse use cases at HCL Technologies with experts who have in-depth knowledge and experience in gamification and technologies to make it live!

As an insurer, if you are interested in collaborating with us, we are here to help. You can write to me at murali-h@hcl.com. We have our innovation lab in London and we are happy to do a virtual hackathon as well.  

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