Allianz uses VR therapy to aid driving phobia recovery

Allianz has announced the use of Virtual Reality (VR) technology to support those with a driving phobia, in collaboration with the Sydney Phobia Clinic.

The insurer's Compulsory Third Party (CTP) insurance division indicates a significant rise in claims involving psychological injuries from motor accidents, with figures rising from 24% in 2020 to 38% in 2024—a 61% increase over four years. The most common injuries reported are related to anxiety and depression (41%), followed by acute stress (23%), post-traumatic stress disorder (PTSD) (22%), and nervous shock (7%).

The VR therapy programme aims to help individuals overcome fears associated with driving after accidents, offering them a chance to rebuild confidence and comfort when returning to the road. Over 100 patients have participated in the pilot programme, which has now been expanded across various locations.

A participant of the programme, Kim, aged 62 from Newcastle, shared, "I was recommended the Virtual Reality therapy program by my case manager at Allianz after a nasty car accident where I was rear ended, causing my vehicle to roll and collide with a tree. The therapy sessions helped me tremendously with the PTSD I was suffering following the accident, and the psychologists at Sydney Phobia Clinic were incredibly supportive, with positive encouragement rather than pressure. After just a few sessions I made great progress and I've since managed to get back behind the wheel and back to doing the things I love."

Thea Hobbins, General Manager Strategic Delivery and Innovation at Allianz, stated, "When someone has a car accident, the physical injuries are more obvious straight away. But sometimes the real obstacle isn't physical, it's mental. Our new program is about offering support to our customers to overcome the biggest barrier of all—mental health."

Dr. Corrie Ackland, Principal Psychologist at the Sydney Phobia Clinic, commented, "We're thrilled to partner with Allianz to assist more people to overcome their fear of driving and get back on the road. The innovative therapy immerses patients in realistic driving scenarios in a controlled, safe environment, allowing them to confront and gradually overcome their fears. By simulating various driving conditions, we help patients rebuild their driving skills and reduce anxiety, ultimately empowering them to return to everyday life with renewed assurance."

The University of New South Wales conducted an independent assessment of the pilot programme, noting a significant positive impact on participants' psychological recovery, with marked improvements in their independence and ability to resume pre-accident life activities.

To increase accessibility, Allianz is extending its services through a smartphone-based subscription therapy service and headset named oVRcome, catering to rural and regional customers. This service expansion is in partnership with Fear Less phobia clinics in Sydney and Wollongong, and pilot programmes are ongoing in Queensland and South Australia.

Allianz Australia delivers a wide range of personal, commercial and corporate insurance products and services to more than 4 million policyholders. It also provides support for workers compensation insurance to around 25% of the top 200 ASX companies, making it one of the top workers compensation insurers in Australia.