What You Should Know
- Large tech-savvy companies like Microsoft and Facebook are making plans to embrace and connect with the Metaverse
- The Metaverse encompasses artificial intelligence, augmented reality, virtual reality, and much more
- Much of the Metaverse will require digital forms of insurance to protect digital property from cybercriminals
If you've been paying much attention to online platforms lately, you may have heard the term "Metaverse" thrown around and wondered what it meant. With numerous companies planning to embrace the Metaverse, the concept is more real now than ever before.
While the term "Metaverse" is extremely broad and complex, the Metaverse can essentially stand for anything from virtual reality platforms to augmented reality communications, beings of artificial intelligence, and everything in between.
With the development and expansion of the Metaverse come countless questions on how it functions, why it matters, and how it will be protected. Though it may sound far-fetched, options for Metaverse insurance are already fairly common.
Why do we need Metaverse insurance?
Digital assets such as personal photographs or Bitcoin have had the option of insurance for some time now. But something as vast and ever-expansive like the Metaverse is leaving many people concerned with protecting property — digital or otherwise — nervous about what's to come.
Insurance in the Metaverse will have to extend not just to personal property but also to intellectual property. And this could be quite difficult to nail down.
With any online presence of note, but especially when it comes to a presence in the Metaverse, it is incredibly important to focus on cybersecurity insurance at all times. Things such as cryptocurrencies and virtual objects will need to be protected from phishing, ransomware attacks, and other forms of cybercrime.
While it is clear that something like the Metaverse will require digital forms of insurance coverage, what that looks like remains unclear.
Until insurance companies make efforts to create policies that cater to the digital world and the digital possessions in it, discussions concerning insurance coverage in the Metaverse are simple speculation.
What will Metaverse insurance look like?
The Metaverse is small, but it will not stay small for long. As the Metaverse grows, insurance companies will be expected to carry platforms that relate to the Metaverse. Insurance institutions that do not adapt to this digital platform may become antiquated in a short time frame.
At the very least, insurance companies like Liberty Mutual and State Farm that plan to tackle the Metaverse and its intricacies will need to allow for immersive experiences for their policyholders while focusing on perfecting digital processes for all types of coverage.
The Metaverse has the potential to change the world of insurance — along with many other spaces in our current, face-to-face environment — in ways we cannot yet imagine.
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