With augmented reality (AR) set to become a $152 billion market by 2030, its use cases for the insurance sector are only growing, according to GlobalData. The leading data and analytics company notes that the technology’s demand among insurers has been catalyzed by COVID-19 and the need for remote inspections.

GlobalData’s report ‘Augmented Reality (AR) in Insurance’ reveals insurers’ growing demand for AR technology to combat challenges to the sector such as COVID-19, climate change, and rapid digitalization among younger generations.

Amrit Dhami, Associate Analyst at GlobalData, comments: “The COVID-19 pandemic has required insurers to start using AR technology in the form of AR-enabled inspections as a service platforms. These allow insurers to carry out in-depth remote inspections. The specialist can use AR on a live video stream with the customer to mark specific points, overlay text and pointers to guide them, or measure real-life distances on-screen. Further, if a risk engineer or adjuster is needed onsite, they can use AR smart glasses to be safely guided by off-site colleagues to minimize the number of agents required at the claim site, while maintaining collaboration.

“The pandemic has left a legacy of remote operations, and it’s no wonder considering how this can significantly reduce travel time, costs, and emissions for firms. For insurers, inspections at service platforms will continue to streamline the claims process and allow insurers to provide better customer service.”

GlobalData’s report also identifies that AR helps insurers assess risks associated with severe weather events and natural hazards.

Dhami continues: “AR allows insurers to effectively and safely simulate real-life disasters and estimate associated damage and repair costs. Insurers can overlay AR imagery on a room or environment to estimate the extent of damage from flooding, landslides, or other natural disasters. Showing customers how far flooding from a burst water pipe in their basement could spread can inform them of the assets and devices most at risk of being damaged, ensuring that preventative measures are taken to reduce avoidable claims.

“Importantly, insurers can use AR glasses to safely survey damaged sites after catastrophic events. Information such as blueprints or floor plans can be overlaid on the agent’s field of vision so they can locate water pipes and gas lines safely and hands-free.”

AR is also a key tool for maintaining market share among younger insurance customers. For example, GEICO’s app uses AR and the user’s phone camera to overlay information about different facilities and attractions nearby.

Dhami adds: “Today’s insurance customers, many of whom are members of Generation Z, expect more engagement and innovation from their insurers than has traditionally been the case. New insurtechs on the scene are increasingly trying to appeal to this demographic, so traditional insurers can use AR to jazz up their advertising campaigns and provide entertaining in-app services to attract younger customers and fend off insurtechs. AR marketing is accessible due to the ubiquity of AR-enabled smartphones, so should be integrated into insurers’ existing apps.”

Information – GlobalData’s upcoming ‘Tech in 2030’ cross-sector webinar (September 14, 2022 at 4pm BST) will reveal further insights about the technologies shaping the future of different sectors. Click here to Register