Do I need to insure the metaverse?

Earlier this year, Axa France announced the acquisition of a virtual land space on the Sandbox platform. A number of general agents are also in the process of opening their branch in metaversethis network of connected virtual environments where all digital players seem to operate (social networks, video game publishers, etc.).

This new toy for internet users around the world could represent, for five years, a market worth more than 700 billion dollars, which the insurance sector wants to invest. But how? And with what ambitions? François-Xavier Combe, founder of Easyblue, a digital insurance platform, explains this new big challenge for us.

What does the metaverse mean today? Is this a reality?

Now, there are several metaverses, one can think for example of Sandbox, or other platforms. In this regard, the first launching pad is play, many start from there. Online gaming, and video games such as fortnite, arouse great and introductory enthusiasm for what the metaverse is tomorrow. A few years ago, for example, a concert was organized at Fortnite, where players attended the virtual world of the game. We’re still at the beginning of the story, but it’s fast paced in some areas. And if such a universe is established, here begins the question of insurance. To complete what we can imagine metaverse, we have already seen that the revolution will come from the fact that all platforms will be interoperable and connected to each other. This is already a little bit of what we’re noticing online right now: when we play, we win prizes: outfits (skins), tokens (tokens), NFTs, and so on. This winning element can be used in other games or environments, especially in exchange currencies. In this huge virtual world, everything flows from one game to another, while building bridges to the real world. We can too soon attending a metaverse event, shopping there, connecting with a sports coach which will make you jog in real life to accumulate virtual points or rewards.

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The first type of insurance that comes to mind is to cover these virtual things

We have to be clear, we are still in the beginning, somewhat in the mid-90s, after two decades of relatively confidential growth, the Internet is still in its infancy. We say to each other “Nice, we can send each other emails, but what’s the fundamental change? ». The metaverse questions are pretty much the same spring, hard to project. Right now, it appears that blockchain technology is likely to play a big role. Right now, the data mostly belongs to GAFAM, despite the GDPR, and these companies monetize it. Thanks for blockchain, we can imagine that in the future we own the data we have, the content we create, our photos, and so on. Everything will prove to be mine. This opens up a more decentralized world, where we no longer have to go through big players and/or institutions. All users will be responsible for their “things” virtual. Like the Internet in his infancy, there is no doubt about it “western fare” initially, then the regulation, which will primarily include the protection of this property, through insurance in particular.

“Some people are already buying land in the metaverse, where there are virtual real estate agents. Imagine you are building your own universe from this land: material and intellectual property issues arise. So it is necessary to develop a principle of insurance ”.

Is it possible that blockchain -secured data has been stolen?

The creation of the metaverse has already led to the creation of a market, that is a place to exchange cryptocurrencies, NFT, and so on. It all remains “fly”. Even in an ultra-secure system, the principle of cryptography is based, for example, on the fact that a private key is used. If I steal it, I will be exposed to the theft of my data. The same goes for the trading platforms used to exchange cryptocurrencies: if something goes wrong and I lose it, can I be sure? This reflection can be added to the collections of NFTs. Some people are already buying land in the metaverse, where virtual real estate agents are located. Consider building your own universe from this earth: Material and intellectual property issues arise. Hence the need for the emergence of an insurance principle. In addition, by protecting oneself virtually, one can imagine real life insurance applications. I have a (real) car with all the sensors it can have now, and its (virtual) avatar in the metaverse. My way of driving will give me advantages over my insurance contract: kind applications “driving aids” emphasis “Pay how you drive” use my data and I will receive bonus points in the metaverse. We can also imagine many bridges between real and virtual life for mutual health insurance: if I play sports in real life, I can unlock rewards for my avatar in the metaverse, and so on. Insurance crawls in two ways: to protect metaverse value creatures and build bridges between real and virtual life.

Would a personal insurance be considered as well?

Yes, I think we join the kind of guarantees that we know in the real world, that apply in the virtual world: damage to reputation, malicious intent, and so on. Sure there are also layers of cyber insurance. It’s definitely one and the same set, if for example someone copies my avatar, how can i protect my identity? My intellectual property? All of this must be insurable. A photographer’s client, for example, makes unique prints: to ensure his works and those of his clients, he creates NFTs that are still embedded in the physical creation. As a collector, he wanted to secure his collection of NFTs, of which he was the intellectual owner. We are already very interested in this new technology and the trends it will bring. We also recently acquired the largest French e-gaming team, so-called Karmine Corp., and it symbolizes our desire to be pioneers in this universe. The idea is to be able to reassure players: if Cristiano Ronaldo in e-gaming breaks his hand, how will his team be compensated? We need to convince risk takers that, even in a virtual application, it is important.

Is NFT insurance already in place?

It’s too early, and then let’s see what the final model will be. On these platforms, if you have cryptos and accounts, you can staking, ie hold them in the wallet and then bet up or down. Here too, we can think of insurance in a FinTech dimension, as already in the world of finance for the insurance of financial titles.

What is the horizon of seeing the metaverse you describe emerging?

I would say for five years. We are now seeing very fast acceleration, but there are some technological hurdles. Interoperability is on the way, and it is necessary to have one and only metaverse, in order to transform the virtual space without having to be disconnected, which is what the current Internet looks like.

What place do you want to go in this new market?

At Easyblue, we want to be players of innovation for our business customers, and be leaders on these issues. For example, I participated in one of the first international fairs in Dubai, examining the developments we discussed. With our fundraising, we developed our robot advisor, and we wanted to digitize the entire insurance environment for managers: social protection, mutual health insurance, delivery insurance, and more. . But we also have the ambition to resort to new professions, especially employees, self-employed entrepreneurs or artisans, especially in a digital ten year warranty formula.

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