More than insurance - Transformation dilemmas

More and more news around Metaverse, Omniveres, Decentraland... A few company has already bought land, built stores, organized campaigns there. Few days ago one night - to see what is going on here - I have signed on decentraland.org and made my avatar.

I have looked around a bit. A few avatars passed by, but I have not really found anything which would be super interesting…

I have tried to check how many visitors / users they have. One tech-blogger claimed, it is around 300 thousand per month, which is not so much compared with the huge hype around them. So SAMSUNG investment is relative brave in this stage. But for a trendy PR action and to learn how to make it happen, it is a perfect move. Plus we never know how it will develop further...

Thanks to blockchain technology, in these worlds basically you could own things, like in the real world. The magic “word” is NFT to have the ownership.

Maybe you have heard that, the first Tweet in "NFT form" was sold above 2 million USD. Yes a few bits has been sold for that amount. Crazy isn’t it? :)

Nike just bought a virtual shoe company that makes NFTs and sneakers ‘for the metaverse’.

If you interested what is NFT have a look on this video:

https://youtu.be/Oz9zw7-_vhM 

So my questions is when we will start insure things in this space?

...by the way something is already going on...

 

What is the real value of the things here?

 

What will be an insured event when we have to pay?

Before I try to answer all these questions, I have looked around what thoughts are already existing in these topics. I have to say there is already some nicely worked out blogs / articles. Writing about the main questions which are interesting. So, I have decided put them here because 99% I share their opinions.

 Here we go! Two of them which worth to have a look: 

"...Today’s standard commercial property policies are triggered by “direct physical loss” to “Covered Property“

NFT insurance is complicated further by pricing fluctuation and a lack of consensus about the value of NFTs at any given time.

A cyber insurance policy may provide coverage for digital asset restoration, but a blockchain is a decentralized system that does not reside in any one place. Indeed, the whole purpose of a blockchain is that it is NOT supposed to be owned by a single entity..."

https://robfreeman.com/nft-insurance/

Here is an other one:

 “…What Does Merging Assets With Products Mean For Insurers?

 We've seen market innovation racing towards the evolution of asset classes with the use of avatars, 3D models, spatial environments, and mixed reality. The asset classes can work together with the metadata to help create profiles of businesses and individuals, which will then populate the Metaverse.

Sure, many of the formats may be understandably proprietary or perhaps platform-specific. While these will quickly scale innovation, the Metaverse will also become portable, and there is a need for interoperability of the assets and content between them.

In the commercial insurance industry, for instance, the critical aspects of portability will include the publishing and transparency of documentation, uniquely identifies for businesses, and risk assessment being ported to the Metaverse.

All of this will need to operate seamlessly, making it possible for businesses to apply for something like workers' compensation insurance or business liability insurance almost entirely via the Metaverse because all information needed is already there.

The ability to directly transfer assets from one platform to the other without using intermediary services will be the major diving force of the Metaverse, especially when it comes to providing insurance products.

Insurance underwriters will have to work with broadened artificial intelligence that uses the common data model for the Metaverse. The enhanced common data model, like the one developed by Microsoft, adds a holistic approach to data management in the Metaverse, which, if adopted by others, will help expand the ecosystem.

How will the Metaverse change commercial insurance? However, for this to be possible, there needs to be further cooperation and collaboration between the government, insurance companies, non-profits, banks, and other major entities.

The Metaverse will also have to be cross-platform, which means that it should be able to work across partners seamlessly. It is only once that happens that business owners will be able to apply for insurance, get approved, and make a claim without leaving the Metaverse.

On the other hand, insurance companies will be able to work with large batches of data, analyzing risk and assigning a premium based on the amount of risk involved. When paired with artificial intelligence, this will work faster than it does today.

How Can Business Insurers Can Get Into The Metaverse?

The Metaverse as it stands today is in its infancy. Most insurers will not see the benefit of jumping into the Metaverse because it offers little in the way of return on investment. The investment here is mainly of time and money.

However, business insurers or even insurance companies, in general, will want to develop a strategy of how they transfer their activities over to the virtual world so that their business is compatible with the forthcoming virtual reality.

Not to mention that it is essential to mention that in as little as three years, we'll start seeing a skyrocketing number of jobs across thousands of industries in the Metaverse; many of these industries will be new but will require insurance. If anything, insurers can potentially make trillions from the boom, but only if they are first.

At present, the strategy seems to be building a Metaverse around your brand. That means creating user-driven engagement with an immersive digital experience. In simple terms, insurers will want to automate, streamline, and digitize every part of the process. Many insurers are already taking this approach, and those that do will be ahead.

Creating a virtual analogy of an insurance product could perceivably be the first step towards selling business insurance as a product compared to service in the Metaverse. That way, businesses that open shop in the Metaverse or individuals seeking personal insurance can buy the insurance product based on how well it is packaged to offer them the best bang for their buck.

How Will The Metaverse Change Commercial Insurance? - The Bottom Line

The virtual items marketplace is going to be worth over a hundred billion dollars. Considering that it is already worth $50 billion, not taking advantage of the potential offered by the Metaverse would mean that insurance companies like in the past would be struggling to keep up with technology.

However, unlike in the past, this is no longer an option because the Metaverse will evolve with or without business insurance companies onboard!...”

https://generalliabilityinsure.com/how-will-the-metaverse-change-commercial-insurance.html

So there is quite a lot of question, but sure we have to deal with it in the near future.

So we have started to think and work on it... :)