AUGMENTED, virtual and mixed reality technologies are being rapidly adopted from the gaming sector for commercial uses including remote surgical procedures, simulated engineering scenarios and virtual event hospitality, Lloyd’s says in a new report.

The ‘New Realities’ report from Lloyd’s and futurist Amelia Kallman analyzes this fast-growing sector and highlights how insurers are also starting to explore how they might use the technologies in areas such as claims and marketing.

As the technology becomes more widespread, new risks are emerging which KPMG estimates could cost business £20bn (C$34.38bn) annually.

The report identifies the risks and opportunities associated with these technologies, giving insurers information needed to offer customers the right coverage, solutions and protection.

It also helps risk managers assess how these technologies could affect their businesses, and what they can do to mitigate any risks associated with it.

“The new realities are opening up a new world of commercial and sensory possibilities for developers, suppliers, users and insurers, while at the same time creating new physical, mental and reputational risks, some of which may be unknown today,” the report notes.

“The insurance industry has an opportunity to work closely with developers and all businesses using the technology to minimize risks for all stakeholders and ensure the new realities sector develops in a considered and responsible way.”

It can also use the technology itself to enhance all aspects of the ways it currently does business to reduce costs and provide a more bespoke, responsive service to policyholders.

“To achieve these goals, insurers must immerse themselves in this new sector to stay on top of new developments, anticipate and react to new risks and invest in innovation and new product development.”

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