Light wrapping is a useful technique for making a blue/greenscreen subject or CG object really set in the background it is being composited into. It creates the illusion of the light from the background plate appear to bleed over the foreground, which helps the element blend naturally with its background.
However, this technique should be used subtly. A common mistake I see often in composites is using too much lightwrap. If you just leave the lightwrap effects at 100% opacity, most of the time, it will be too much. In fact, I try not to go above about 50% opacity. Look at the example below to see what I mean.
Clearly, the default 100% is far too much lightwrap, which looks unnatural, and gives away the composite. However, on the right, the lightwrap is only at 25% and feels far more natural.