Will Augmented Reality hurt small businesses?

Augmented Reality in the insurance sector

As you probably know, Augmented Reality (AR) refers to a computer-aided perception of reality in which the real and virtual world mix with one another. This is usually about an extended visual representation, i.e. the addition of images, videos, text information or virtual objects in real time to the real world. This option of an augmented reality representation enables working, learning and living to be completely redesigned.

What exactly is augmented reality and how can it be distinguished from virtual reality (VR)? The difference is actually quite easy to explain: While virtual reality lets the user “escape” completely from the real world and immerse himself in another reality, augmented reality only expands the real world and “improves” it with additional information. Incidentally, both technologies are grouped under the term “immersive experience”.

Let's take a little time travel: Did you know that Ivan Sutherland developed glasses in the USA as early as 1968 in which additional data could be displayed? It's amazing that it took almost 40 years before augmented reality could be integrated into our everyday lives through smartphones and tablets. The tendency to deal with AR will increase. If we take a look into the future, 70% of all companies are expected to experiment with immersive technologies by 2022. Around 25% of companies will even use AR and VR technologies in production. By 2028, this use of technology will also have fundamentally changed media use - not only in the entertainment industry, but above all in companies.

For Gartner - a provider of market research results and analyzes of developments in IT - augmented and virtual reality belong to the "Top 10 Strategic Technology Trends" in 2019.

Use of augmented reality in the insurance industry

Nice and good. Now you know what augmented reality is, where it originated and where it will lead. But how can this technology be used in the insurance industry?

First of all, consulting processes without visiting a branch and additions to product consulting would certainly be obvious processes that would benefit from the use of augmented reality. In this way, advice and the sale of an “abstract” insurance product could be made much more tangible and informative.

On the other hand, imagine internal training for employees. They can be hosted virtually. Thanks to the detailed display and explanation options offered by augmented reality, the training content could be conveyed easily and clearly. A positive side effect is that costs for trainers can be saved.

Whether sales, contract management, claims and benefits processing, customer communication, remote advice or training - there are numerous possible uses for augmented reality in the insurance industry.

The future of augmented reality in insurance

All theory is gray. So we took the next step and wanted to find out whether AR also had the potential to reshape the insurance workplace in reality. As part of an AR campaign, we created a corresponding online questionnaire and an informative brochure on the subject, which was sent to selected insurance companies. However, insurance companies that are interested in the use of AR always have the opportunity to get to know this technology in a personal appointment.

Conclusion: Augmented Reality is the future of the office world

Augmented Reality will play an important role in all areas of our life. Above all, however, this technology will completely change our day-to-day work and increase effectiveness and efficiency - also in the insurance sector. For example, insurance products could be explained more easily to the customer through supporting information and visual representations, or advice could be held virtually. The sales representative could even spend his break on the virtual beach. If you need a little break from the monotonous everyday office life, meetings or conferences could take place at the virtual location of your choice.

As you can see, there are numerous points of contact for the use of augmented reality in the insurance sector. In my post, I have only scratched the surface, because the potential of this technology in the insurance sector is inexhaustible. If you have any questions about this topic or about our study, please feel free to contact me by email ([email protected]).

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