In the previous Insuretech Bulletin, we mentioned that Charles Taylor Insuretech has launched in the Metaverse. This is a huge milestone into the meta space and opens the door to a new form of Insurance. 

The metaverse is predicted to be the biggest technological change since the creation of the internet. It encompasses the merging of the physical with the digital world through the application of different technologies. It will offer an immersive, interconnected virtual world in which users can share experiences and interact in real time, which will fundamentally change the way we live and do business. From new products to immersive customer experiences, the metaverse presents insurers with game-changing opportunities and risks.

Big businesses are already investing millions of dollars and the metaverse is predicted to be worth $13trn by 2030, more than double the value of today's entire global insurance industry at $5.4trn. Insurers cannot afford to miss the huge opportunities this paradigm shift presents, nor can they ignore the risks.

There is a need for very different insurance products in this new world. On a personal lines level, people will have digital avatars that will wear digital fashion and live in digital homes. What happens when someone hacks into the digital home and steals their possessions? There may be a need to insure digital "buildings" and "contents", even though there is no tangible asset to underwrite. There is a real opportunity to develop dedicated metaverse insurance products. These could be similar in nature to today's data breach and other cyber insurance products but tailored to the metaverse's specific risks. This could extend to include protection products, such as coverage for the avatar to protect users and their data directly.

Click the link here to read more about the risks associated with the Metaverse and the new avenues for the Insurance Industry.