New policies to enter the Metaverse?

The Metaverse is a set of virtual spaces filled with avatars, a virtual universe shared via the Internet, where participants are represented in three dimensions. Unlike the current Virtual Reality, mainly used for video games, this new virtual world could be used for practically anything: work, concerts, travel, cinema. Or simply, as a substitute for leaving the house to meet other people. 

How? With a 3D avatar, a digital representation of ourselves. In the Metaverse, one can replicate most everyday activities, such as meetings, lunches, workouts, films, games, all in a 3D version with a connection and a few clicks. 

The Metaverse is developed in the digital, a cyber-space created and powered by global communication networks. It is enabled by many different technologies, such as AR (augmented reality) and VR (virtual reality). But there is also blockchain, 5G and edge computing.

Limiting ourselves to the visual aspect: current smartphones have a low level of immersiveness, while at the other extreme we have glasses that project images directly onto the retina.

How does the Metaverse relate to the insurance world? At this early stage of development, we can already draw some indications, although it is still too early to identify consolidated trends: helmets, gloves, and other devices for entering the Metaverse are becoming risk factors and causes of minor domestic accidents. For example, videos can be found on the net of people who, using the visors while engaged in online games, fall, bump into furniture, or accidentally hit their loved ones. 

Statistics bear this out: in the UK market, accidental collisions of gamers against home furniture while in the metaverse caused a 31% increase in home claims in 2021, marking an overall increase of 68% compared to 2016.​

There is fun to be had in the Metaverse, it is a powerful means of escapism and perhaps even a source of business opportunities for various brands; but people need to be aware of the risks they are taking, removing the barriers between physical and virtual space. It may, therefore, be useful to take out device insurance with coverage for accidental damage.