Page 18 - The Insurance Times September 2022

The specialist can use AR on a live market share among younger insur- ade previously stated it would not re-
video stream with the customer to ance customers. For example, GEICO’s duce headcount. Other high-profile
mark specific points, overlay text and app uses AR and the user’s phone cam- insurtechs that have made similar
pointers to guide them, or measure era to overlay information about dif- moves in 2022 include Nova Benefits
real-life distances on-screen. Further, if ferent facilities and attractions nearby. cutting 30% of its staff in June and
a risk engineer or adjuster is needed Zego cutting 17% of its staff in July.
Dhami adds: “Today’s insurance cus-
onsite, they can use AR smart glasses
tomers, many of whom are members Ben Carey-Evans, Senior Insurance
to be safely guided by off-site col-
of Generation Z, expect more engage- Analyst at GlobalData, comments:
leagues to minimize the number of
ment and innovation from their insur- “These trends are likely due to a com-
agents required at the claim site, while
ers than has traditionally been the bination of factors. As highlighted, in-
maintaining collaboration.
case. New insurtechs on the scene are vestment into the sector has dried up
“The pandemic has left a legacy of re- increasingly trying to appeal to this somewhat. Funding rounds are essen-
mote operations, and it’s no wonder demographic, so traditional insurers tial to keep insurtechs running in the
considering how this can significantly can use AR to jazz up their advertising early stages before they become prof-
reduce travel time, costs, and emis-
campaigns and provide entertaining in- itable, so reduced investment is a sig-
sions for firms. For insurers, inspections
app services to attract younger cus- nificant barrier.”
at service platforms will continue to
tomers and fend off insurtechs. AR
At the end of July 2022 there had been
streamline the claims process and al-
marketing is accessible due to the ubiq-
low insurers to provide better cus- $1.0 billion invested into the theme,
uity of AR-enabled smartphones, so
which represents 49.5% of the total
tomer service.”
should be integrated into insurers’ ex-
annual 2021 figure suggesting growth
GlobalData’s report also identifies that isting apps.”
is unlikely in 2022.
AR helps insurers assess risks associated
with severe weather events and natu- It is also likely that in tough economic
Insurtech investments fall
ral hazards. times – such as a pandemic and now
by 79.6% in 2021 leading the cost-of-living crisis – consumers
Dhami continues: “AR allows insurers
to effectively and safely simulate real- to job losses and tough turn to familiar and established brands,
as they trust them more to survive and
life disasters and estimate associated
economic conditions in pay out claims. It is also true that a lot
damage and repair costs. Insurers can
overlay AR imagery on a room or envi- 2022 of insurtechs focus on gadget or pos-
ronment to estimate the extent of With several leading insurtech start-ups sessions insurance, which is not consid-
damage from flooding, landslides, or providers going bust or cutting staff, ered an essential purchase by consum-
ers. As a result, it is a line that is al-
other natural disasters. Showing cus- the COVID-19 pandemic and cost-of-
tomers how far flooding from a burst living crisis are having a massive impact ways likely to be hit as disposable in-
water pipe in their basement could on the global insurtech industry, with comes decrease and consumers look to
spread can inform them of the assets leading data and analytics company reduce their expenditure.
and devices most at risk of being dam- GlobalData finding that investments Carey-Evans adds: “Insurtechs will
aged, ensuring that preventative mea-
into insurtech have fallen significantly need to focus on offering value to con-
sures are taken to reduce avoidable
in 2022. sumers, as that is what they will be
claims.
GlobalData’s Deals Database reveals looking for in the immediate future.
“Importantly, insurers can use AR This can be achieved by relying heavily
that the value of global investments
glasses to safely survey damaged sites on artificial intelligence to cut process-
into insurtech fell by 79.6% in 2021.
after catastrophic events. Information ing costs, or by offering innovative
This follows a consistent flow of stories
such as blueprints or floor plans can be products such as pay-as-you-drive and
of insurtechs struggling in 2022. The
overlaid on the agent’s field of vision
most recent is Lemonade cutting on-demand policies. The latter would
so they can locate water pipes and gas
Metromile’s staff by 20% after complet- allow consumers to control how much
lines safely and hands-free.”
ing the acquisition of the insurtech in they pay or receive cover only when it
AR is also a key tool for maintaining August 2022. This came after Lemon- is strictly needed.”
18 The Insurance Times, September 2022