I think the key here is that the hole in one insurance is 'frequently bundled with other services'. It's something that basically costs nothing for the insurance companies to provide, but could act as a selling point for the right customer.
Got the cardboard demo app to fire up on my Nexus 4 using a magnet. Waving it around the headphone port seems to trigger the 'switch'. Was curious about how it did motion tracking. Seems all the demos use the accelerometer for tracking. Was sort of hoping they worked out how to use the camera for motion tracking.
Now all I need is lenses, an nfc chip, laser cutter, and proper weight to strength ratio cardboard!