revolutionizing stakeholder experience in insurance ...€¦ · augmented reality (ar) and virtual...

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Revolutionizing Stakeholder Experience in Insurance through Augmented and Virtual Reality Abstract Augmented reality (AR) and virtual reality (VR) attempt to merge the physical world with the virtual, and in the process, lead to a new era in digital visualization and interaction. They radically revolutionize the way we touch, see, hear, and feel the space around us, and elevate our interactions with the physical world to a new experiential level. This paper explores how these technologies can create a differentiated experience for stakeholders in the insurance industry and how insurers can leverage them for sophisticated risk management, efcient damage assessment, top line growth, and meaningful end-customer experiences. WHITE PAPER

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Page 1: Revolutionizing Stakeholder Experience in Insurance ...€¦ · Augmented reality (AR) and virtual reality (VR) attempt to merge the physical world with the virtual, and in the process,

Revolutionizing Stakeholder Experience in Insurance through Augmented and Virtual Reality

Abstract

Augmented reality (AR) and virtual reality (VR)

attempt to merge the physical world with the

virtual, and in the process, lead to a new era in

digital visualization and interaction. They radically

revolutionize the way we touch, see, hear, and feel

the space around us, and elevate our interactions

with the physical world to a new experiential level.

This paper explores how these technologies can

create a differentiated experience for stakeholders

in the insurance industry and how insurers can

leverage them for sophisticated risk management,

efcient damage assessment, top line growth, and

meaningful end-customer experiences.

WHITE PAPER

Page 2: Revolutionizing Stakeholder Experience in Insurance ...€¦ · Augmented reality (AR) and virtual reality (VR) attempt to merge the physical world with the virtual, and in the process,

Seeing is Believing

Hollywood introduced AR and VR and captured our imagination

with facial recognition and retina scanners, heads-up displays,

multi-touch user interfaces, interactive gesture controls, e-

papers, personalized advertisements, and holographic

projections. Though both AR and VR technologies are closely

related, the systems that go into building them and their

respective user interaction mechanisms are vastly divergent.

In VR, the user is presented with a virtual world that closely

mimics the real world, happening in a closed environment or a

VR head-mounted display (HMD). The HMD contains sensors for

tracking head motion to synchronize the virtual imagery on the

display. When it is coupled with body motion tracking and

response systems, it takes the user experience to the next level.

In AR, the user sees the real world augmented with additional

content through various intermediary interface such as

smart-phones, heads-up displays, optical-see-through and

video-see-through HMDs, smart glasses, and spatial display

projections. Image scanning and spatial mapping play a key

role in overlaying content on the physical world. These are

achieved by using cameras, global positioning systems,

gyroscopes, and depth sensors.

As AR and VR intersect and interfuse, a mixed reality (MR)

environment is created where virtual and real objects co-exist

to create newer visualizations and interaction settings. MR

heavily depends on image recognition and computer vision

technologies to understand the environment. Optical projection

techniques are used through the HMD to project virtual objects

onto the real world. With advanced eye, head, and motion

tracking, gesture control, tactile feedback, or voice commands,

users can intuitively control these virtual elements.

WHITE PAPER

Page 3: Revolutionizing Stakeholder Experience in Insurance ...€¦ · Augmented reality (AR) and virtual reality (VR) attempt to merge the physical world with the virtual, and in the process,

Conjuring a New Reality

These technologies provide experience that current digital

touch points do not offer. While VR offers a portable simulated

presence through a virtually recreated environment, AR is

perceived to provide realistic utilitarian value with augmented

content. Both present plethora of real-world applications across

different industries:

n Immersive experience: VR headsets and consoles provide

holistic experience, particularly in gaming and

entertainment, by providing near-realistic sense, feel, and

touch. Interactive 3-D VR creates a system of enhanced

visualization to provide an immersive virtual environment.

n Design visualization: Provide high utilitarian value in elds

such as industrial design, oor planning, and new product

development in the manufacturing industry.

n Remote guidance: Using AR, specialists provide remote

guidance to non-experts who are in the spot to scrutinize

and repair machinery. They can take notes through voice

commands, or review checklists and manuals through

gesture controls.

n Content augmentation: AR and VR provide new channels

to enhance user engagement revolutionize customer

experience and enrich content delivery. Usage is seen in

retail shop oors, connected cars, and operation theatres.

WHITE PAPER

Page 4: Revolutionizing Stakeholder Experience in Insurance ...€¦ · Augmented reality (AR) and virtual reality (VR) attempt to merge the physical world with the virtual, and in the process,

Jumping the Curve in Insurance

Insurers can use AR and VR in different ways to drive innovation

and add value with real-time decision-making, superior

presentation of content, and sophisticated customer engagement.

In the insurance industry, the adoption in enterprise business

processes and stakeholder training is still nascent.

n Sales and marketing: AR and VR allow insurers to broach

sensitive real-life situations and showcase value to

customers in a non-intrusive manner. Instead of mass sales

pitch, they can be used for personalized depiction.

n Risk inspection: AR can help risk assessors access right

information from a remote location by guiding and indicating

risk hotspots that may need closer physical inspection.

n Damage assessment: AR can help claim adjusters to

remotely measure the dimensions of a damaged property,

use images and footage captured to create 3D-image

models, and perform a 360° assessment. Adjusters can

understand the pre-loss condition by overlaying relevant

templates on the damaged parts, measure dimensions,

assess the extent of damage, and estimate repair costs

using image processing.

n Training and education: AR and VR can be used to train

agents, adjusters, or risk assessors to develop the right

skill-sets at a lower cost through virtual simulated

environments. AR-based applications and gamied themes

can be used to train employees on internal processes and

business functions

Overlay additional information to aid

assessment and provide remote

guidance during risk inspection

WHITE PAPER

Page 5: Revolutionizing Stakeholder Experience in Insurance ...€¦ · Augmented reality (AR) and virtual reality (VR) attempt to merge the physical world with the virtual, and in the process,

Expanding Horizons of Reality

AR and VR will open up a world of non-obtrusive virtual

interaction by bridging the physical-virtual chasm and

eliminating the need for any intermediate gadgetry such as a

desktop, tablet, or smart device.

The amalgamation of AR and VR will blur the boundaries

between the physical and digital worlds, making MR, thefuture.

For these technologies to become ubiquitous,existing challenges

such as user-friendliness, efcient power consumption,

seamless graphics rendering, visual fatigue, data and privacy

protection have to be addressed. The technologies need to

evolve to understand the environment and its attributes, and

accordingly place projections in a 3D physical space.

Complementing headgears or gadgets with sensors, cameras,

speakers, and projectors placed in the environment will further

enhance user experience and open the eld of vision. In

addition to haptics that deals with the sense-of-touch to control

and interact with computer applications, the growth in

simulation of temperature, smell, and taste will further

increase the real-world feel of the virtual world.

Conclusion

The future will move in a direction where these technologies no

longer just work to excite and entertain the user, but intend to

serve real-world utility and purpose. In due course, in-person

meetings or video conferencing will evolve to virtual 3-D

telepresence.

Virtual projections and holograms that form the base of MR will

evolve in quality, making it difcult to differentiate between

real and virtual objects. They will offer a seamless and more

natural experience to the user, and translate into real-world

human touch and interaction, providing enhanced control and

higher usefulness quotient. For example, in the insurance

context, agents can visit their clients using MR while sitting in

their own ofces. An adjuster will be able to perform virtual

property visits, touch and feel any damage or material at the

location of the policyholder, and estimate damages.

The potential use cases for AR and VR will evolve as the

technologies mature. In the meantime, insurers can explore

pilot proofs-of-concept for some of the use cases discussed

above. By leveraging these new-age digital technologies,

insurers can elevate the brand experience of products and

services to spur growth and redene their businesses.

WHITE PAPER

Page 6: Revolutionizing Stakeholder Experience in Insurance ...€¦ · Augmented reality (AR) and virtual reality (VR) attempt to merge the physical world with the virtual, and in the process,

All content / information present here is the exclusive property of Tata Consultancy Services Limited (TCS). The content / information contained here is correct at the time of publishing. No material from here may be copied, modified, reproduced, republished, uploaded, transmitted, posted or distributed in any form without prior written permission from TCS. Unauthorized use of the content / information appearing here may violate copyright, trademark and other applicable laws, and could result in criminal or civil penalties. Copyright © 2016 Tata Consultancy Services Limited

About Tata Consultancy Services Ltd (TCS)

Tata Consultancy Services is an IT services, consulting and business solutions

organization that delivers real results to global business, ensuring a level of

certainty no other firm can match. TCS offers a consulting-led, integrated portfolio

of IT and IT-enabled, infrastructure, engineering and assurance services. This is TMdelivered through its unique Global Network Delivery Model , recognized as the

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For more information, visit us at www.tcs.com

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About The Authors

Suresh Bhaskaramurthy

Suresh Bhaskaramurthy

currently leads research

initiatives at TCS' Insurance

and Healthcare Innovation Lab.

He specializes in developing

and managing next-generation

solutions that use the latest

niche technologies for the

insurance industry.

Srivathsan Karanai Margan

Srivathsan Karanai Margan has

diverse hands-on experience in

end-to-end insurance

processes. He works on

identifying and creating next-

generation solutions with TCS'

Insurance and Healthcare

Innovation Lab.

Niranjan Vallur Nagarajan

Niranjan Vallur Nagarajan has

deep expertise in property and

casualty insurance, which he

leverages to execute key

transformational projects

across actuarial, underwriting,

and policy administration areas

for various North American

insurers. He currently focuses

on disruptive innovation

research and strategizing

business design for futuristic

solutions in insurance and

healthcare.

About TCS' Insurance Business Unit

With over four decades of experience in working with insurers globally, TCS

delivers solutions and services to help insurers meet rising customer and agent

expectations, address non-traditional competitors, manage low investment yields,

and drive growth in emerging global markets.

TCS has built an unmatched track record in enabling insurers to transform,

enhance business agility, improve operational efficiencies and increase customer

engagement, while ensuring regulatory compliance. Seven of the 10 world’s

largest insurers and more than 100 insurers globally partner with TCS.

Our state-of-the-art Innovation Labs and Global Solution Centers, and cutting-

edge solutions and technologies set clients apart from their competitors.

We leverage the combined expertise of our industry-trained and certified

(including LOMA, LIMRA, CPCU, etc.) consultants to support the entire value chain

for Life, Annuities and Pensions, Property and Casualty, Health, Commercial and

Reinsurance companies.

Contact

For more information about TCS’ Insurance services, visit:

www.tcs.com/insurance

Email: [email protected]

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WHITE PAPER