In 2023, the metaverse is so much more than digital meeting spaces and games. It provides the potential for businesses to transform the experience of employees and customers, improve processes, and market new products and services. According to a Protiviti-Oxford survey, "Executive Outlook on the Metaverse, 2033 and Beyond," more than 85% of North American business executives say the metaverse will be "somewhat" or "extremely important" to their business' future success. However, as the metaverse unlocks future business potential, it also carries some emerging risks for consumers and businesses, creating a growing need for insurance coverage.

While the transition to the metaverse – which is still in its infancy – will be gradual, some businesses have already begun assessing the application of technologies like augmented reality (AR) and extended reality (XR). One example is what's known as digital twins, which is a virtual model of a process, product, or service. These are virtual representations of physical objects, systems or processes that can be effective for insurers to use in order to run cost-effective simulations, collect data to drive automation and increase efficiency with decision-making. This is significant because it is important for companies to begin to experiment with these technologies in small, incremental steps over time. Companies do not want to fall behind their competitors in the digital space as technology evolves. With AR, XR or digital twins, companies can experiment with what works best for them since not all technologies will be necessary for their business.