AR/VR in insurance: The next step in insurtech?

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  Quantumrun Foresight
• January 25, 2024

Insight highlights

Augmented and virtual (AR/VR) technologies are revolutionizing the insurance sector, enhancing customer engagement and claims processing. Augmented Reality provides interactive policy information, while Virtual Reality offers immersive experiences for understanding coverage. Companies like Zurich Insurance and PNB MetLife India lead in XR adoption for risk assessment and training. This technological shift is attracting younger clients and transforming industry practices, promising more efficient and personalized services. However, it also presents challenges in data privacy and regulation.

AR/VR in insurance context

Augmented reality enables users to access and engage with digital data within their real-world environment. For instance, an insurance company could employ AR to superimpose updated information on car insurance policies on promotional posters or brochures. Meanwhile, VR is used to immerse users in a simulated world. An insurance provider could utilize this technology to offer clients a virtual walkthrough of their home or workplace, assisting them in comprehending their coverage choices.

Using digital building plans and sensor installations, insurance inspectors can thoroughly assess all damaged sections of a compromised building. This approach enables more accurate evaluations and faster claim processing. For instance, Symbility Video Connect offers a live video communication platform between insurers and customers, streamlining the claims submission process by allowing clients to provide real-time information. This solution not only enhances customer experience but also improves the efficiency of claims management.

According to a 2018 survey by Accenture, 84 percent of insurers believe that extended reality (XR, comprising VR/AR) will redefine interaction, communication, and information within the sector. Most of the surveyed insurance executives aspire for their companies to lead the way in XR adoption. For example, Zurich Insurance employs AR glasses to enhance the efficiency, safety, and collaboration of their field workers and risk engineers. Meanwhile, PNB MetLife India's conVRse solution allows customers to interact with a virtual assistant named "Khushi" within a 3D simulated environment.

Disruptive impact

Insurance companies are poised to enhance their product promotion in the future using AR. Numerous organizations have started utilizing computer-generated information to better comprehend real-world experiences. By employing AR, insurers can communicate with their clients about potential risks, evaluate damages, and clarify insurance policies. For example, adjusters can remotely access a 360-degree view of damages through AR, enabling them to assess the scope of the damage more accurately.

Training is an area that will likely benefit from increasing XR integrations, especially for claims processors. They are responsible for examining claims through communication with policyholders, law enforcement officers, witnesses, and others. Through XR training, newcomers can receive updated scenarios and policies, enabling them to execute their tasks confidently and produce highly accurate results. Moreover, technical experts can also use XR to support onsite assessors near damaged properties to ensure accurate evaluations. Employees can direct their mobile devices to a poster, which triggers videos from a mobile training course, further enhancing their learning experience.

As XR technologies become increasingly commercialized, their appeal is expected to grow among younger clients who are digital natives. Consequently, insurers face the challenge of developing innovative strategies to engage with these tech-savvy consumers. By integrating XR into their offerings, insurance companies can create immersive and personalized experiences that resonate with this demographic. 

Implications of AR/VR in insurance

Wider implications of AR/VR in insurance may include: 

• More accurate risk assessments by allowing employees to simulate scenarios, leading to lower premiums for customers who fall under specific profiles.


• XR being used to document and process insurance claims, making the process more efficient and cost-effective. This feature could lead to faster payouts for customers.


• XR enabling insurers to create new products and services that cater to specific customer needs. For example, they could develop insurance policies for autonomous vehicles or AI liability.


• The adoption of XR technology leading to changes in the types of skills and jobs required in the industry. For example, there may be a greater need for data analysts, UX designers, and XR developers.


• XR leading to increased concerns about data privacy and security, mainly if it is used to collect sensitive information about customers. Insurers will need to ensure that they comply with data protection regulations and are transparent about their use of XR technology.


• Virtual inspections of properties reducing the need for physical checks, which could lower the industry's carbon footprint.


• New regulations governing the use of XR technology in risk assessment and claims handling, and new policies or incentives to encourage its adoption.

Questions to consider

• If you work for the insurance industry, how is your company adapting to AR/VR?


• What might be the limitations of these technologies in insurtech?