Allianz has collaborated with the Sydney Phobia Clinic to launch a virtual reality (VR) exposure therapy program designed to address psychological injuries arising from motor vehicle accidents.
The initiative aims to support individuals struggling with driving-related fears, a problem that Allianz says is becoming increasingly common among its compulsory third party (CTP) insurance claimants.
Latest data from Allianz indicated that psychological injuries accounted for 38% of its CTP claims in 2024, a significant rise from 24% in 2020.
Over the past four years, common issues reported include:
The VR program, piloted with more than 100 claimants, immerses participants in realistic driving simulations to help them rebuild confidence behind the wheel.
Allianz is the first general insurer in Australia to adopt VR technology for addressing driving-related phobias.
Thea Hobbins, general manager of strategy delivery and innovation at Allianz, said the program addresses an often-overlooked aspect of car accidents.
“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,” she said.
Dr Corrie Ackland, principal psychologist at the Sydney Phobia Clinic, highlighted the benefits of the VR approach.
“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,” she said.
Kim, a 62-year-old from Newcastle, described her experience with the therapy after being involved in a serious accident.
“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,” she said.
A review conducted by the University of New South Wales found that participants in the program experienced substantial improvements in psychological recovery, independence, and their ability to return to daily life.
Based on the pilot’s results, Allianz is expanding the service to rural and regional customers through a smartphone-enabled therapy platform, oVRcome. This mobile-based service uses a headset to deliver similar VR-driven exposure therapy.
The insurance giant is also collaborating with Fear Less clinics in Sydney and Wollongong and running pilot programs in Queensland and South Australia.
