Metaverse Can Boost Employee Retention, Training and Growth for Insurance Industry, ISG Says

Rhea-AI Summary

ISG, a leading global technology research and advisory firm, emphasizes the necessity for insurers to embrace the metaverse to attract tech-savvy talent and clients. During a recent Insurance Journal webinar, ISG's Director, Dennis Winkler, highlighted that modern graduates seek high-tech careers, often overlooking insurance. The metaverse can enhance employee engagement and customer interaction. Insurers must act swiftly to explore metaverse opportunities, such as virtual storefronts and innovative offerings like life and cyber insurance for virtual assets. By starting their metaverse strategies now, insurers can better assess risks and improve their product development.

Positive

• Emphasizes the metaverse as a platform to enhance talent recruitment and customer engagement.
• Encourages insurers to create innovative products for virtual assets, opening new revenue streams.

Negative

• Insurers risk falling behind if they do not act quickly to integrate metaverse strategies.

ISG expert, speaking during Insurance Journal webinar, urges insurers to begin building their metaverse presence now

STAMFORD, Conn.--(BUSINESS WIRE)-- Insurers that leverage the metaverse now to attract a new generation of talent and tech-savvy customers will gain considerable market advantage, an expert with Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm, said today.

In a panel discussion, “Insuring the Metaverse: Immersive Tech and the Future of Coverage,” during a webinar produced by Insurance Journal, ISG Director Dennis Winkler said the metaverse can support the next generation of insurance talent and customer development, but will require fast action and a focus on product and technology capabilities on the part of insurance companies.

“New college graduates want careers based in modern technology, but research shows they do not see insurance as offering the high-tech experience they seek,” Winkler said. “The metaverse has the potential to be a game-changing platform for employee engagement, talent retention and development for insurance companies that use it to establish a more tech-savvy, modern image.”

Winkler also noted the ability of the metaverse to bring together remote work teams and to create new ways of interacting and building relationships with customers.

“The time is now for insurance companies and agents to start experimenting in the metaverse to see what works for them and their customers,” he said. “It could be as simple as a virtual storefront with a virtual agent recreating old-school insurance sales in a new channel, or it could offer customers the chance to interact with the well-known brands insurers have already established in new ways, delivering an experience that people will remember.”

With metaverse technology spread across many different platforms, the infrastructure that supports these platforms varies widely, he noted. This brings the same complexities of omnichannel customer experience from the offline world to the virtual world. Insurers will need a technical backbone that’s capable of delivering an immersive digital customer experience, but with the same brand image across all platforms.

Winkler also said insurers should be ready to create new products to cover the risks that will evolve with metaverse expansion. Metaverse customers will need policies such as life insurance to insure virtual metaverse lives, property and casualty insurance for assets such as in-game currencies, virtual property and NFTs, or cyber insurance for metaverse cybercrimes, he said.

In the process of developing those products, Winkler cautioned insurers to avoid ambiguity and carefully examine their comprehensive coverage clauses, which typically include digital and data risks from digital platforms, to determine whether the virtual world and virtual assets could be unintentionally wrapped into a policy.

“Those who start their metaverse journey sooner will develop the data needed to get their pricing and products right much faster,” he said. “Without letting up on ongoing technology transformation projects, insurers need to at least start building their metaverse plan. The quicker they understand how this new virtual world works, the quicker they can gather data, assess risks and make money.”

Additional information is available on the event website.

About ISG

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 900 clients, including more than 75 of the world’s top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,600 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20230321005964/en/

Will Thoretz, ISG

+1 203 517 3119

will.thoretz@isg-one.com

Julianna Sheridan, Matter Communications for ISG

+1 978 518 4520

isg@matternow.com

Source: Information Services Group, Inc.

FAQ

What is ISG's position on the metaverse for insurers?

ISG advises insurers to leverage the metaverse for attracting tech-savvy talent and enhancing customer engagement.

Who spoke about the importance of the metaverse at the Insurance Journal webinar?

ISG Director Dennis Winkler discussed the potential of the metaverse during the webinar.

How can insurers benefit from the metaverse according to ISG?

Insurers can benefit by engaging new talent, innovating products, and improving customer interactions.

What products should insurers consider for the metaverse environment?

Insurers may need to develop life insurance, property and casualty insurance, and cyber insurance for virtual assets.

When should insurers start exploring the metaverse?

ISG recommends that insurers begin experimenting with the metaverse immediately to gain a competitive edge.