Virtual reality, or VR for short, may have some limited applications outside of video games and entertainment, but major US insurer Allstate Insurance Company believes there is potential in the technology for use in the insurance industry. Last week you were reading Swiss Re Exec On Whether Industry Is Making Real Progress. This week we’re bringing you:
The streamlined user experience, seamless customer support and improved navigation that was supposed to define the digital transformation of the property/casualty insurance industry — and improve customer satisfaction — has been overpowered by rising rates, according to the J.D. Power 2022 U.S. Insurance Digital Experience Study released Tuesday.
The study showed that overall customer satisfaction with the property/casualty insurer digital shopping experience is just 499 on a 1,000-point scale, down 16 points from a year ago. This, despite significant investments in customer-facing websites and mobile apps.
“Although insurers keep upping the ante on technology, improvements are being offset by frustration among customers who are going online to shop for a better rate — and not finding one,” Robert M. Lajdziak, director of insurance intelligence at J.D. Power, said in a statement. “We’re also seeing a clear trend in which more than half of digital insurance shoppers are choosing not to use digital tools or educational resources to help them through the shopping process. This further exacerbates the decline in customer satisfaction.”
According to The Council of Insurance Agents & Brokers’ (CIAB) Commercial Property/Casualty Market Index, capacity for cyber insurance may be decreasing while demand is increasing, which could have driven cyber premium price increases of an average 27.5% during the first three months of 2022.
Nearly 80% of respondents said capacity decreased during Q1, and more than 30% said the decrease was “significant.” Meanwhile, 90% of survey takers said there was an increase in demand for cyber insurance due to an “increased general awareness of the exposure faced by all individuals and organizations on a global basis without borders or regard for size, score or industry,” CIAB quoted one respondent.
Results from the survey indicated carriers are also requiring more from insureds to obtain cyber coverage. Many insurers require at least multifactor authentication or the potential policyholder is deemed “virtually uninsurable” and a quote is refused, CIAB reported. Agents and brokers also said carriers are requiring stronger passwords, third-part vendor management, an incident response plan, training of employees on phishing, penetration testing, system backups, and endpoint detection. Carriers are providing access to tools, assessments, consultations, and software to meet the requirements, respondents said.
Virtual reality, or VR for short, may have some limited applications outside of video games and entertainment, but major US insurer Allstate Insurance Company believes there is potential in the technology for use in the insurance industry.
A patent application assigned to Allstate was recently uncovered on the US Patent and Trademark Office (USPTO) website. Filed on November 12, 2021, the patent presents the idea of using VR in insurance.
NewsRx first broke news on the patent filing. The inventors who filed the patent believe that VR could ultimately help both consumers and insurers.
“Selecting an appropriate level of insurance is a challenge for most insurance customers,” the inventors said under the background information of the patent. “It can be difficult to gauge what kinds of liability coverage, deductible levels, and other options a particular user may wish to have, and many users end up selecting coverage that is either too much coverage or not enough coverage. There remains an ever-present need to help insurance customers make better-informed decisions when selecting their insurance.”
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