Telematics and use of smart phone technology among the top patent trends
More than 400 international insurance-related patents were filed last year, in a sign that the insurance sector is focusing on innovation in a bid to add value to its product offerings and get ahead of the competition, says RPC, the City law firm.
Research by RPC reveals that there were 435 international insurance-related patents filed during 20121 for innovations as diverse as healthcare insurance which allows for the use of stem cells in future treatments and methods for valuing insurance cover for hydrocarbon reserves.
RPC says that over the past 10 years2, 5,072 international insurance-related patents were filed. Some of the most frequent filers include major insurers such as the Hartford Fire Insurance Company (part of the Fortune 500 Hartford Group), and Mitsui Sumitomo Insurance Co Ltd.
Paul Joseph, Partner at RPC comments, “These figures show that the insurance sector is a hotbed of innovation right now, with insurers and brokers searching for new ways to differentiate their products and offer value-added services.
“It’s often forgotten just how much research and product development takes place within financial services and in a competitive marketplace protecting the Intellectual Property that is created is more important than ever.
“Intellectual property is often described as a battleground, as insurers seek to steal a march on their competitors.
“It’s an exciting time for the sector but also a challenging one. Firms are going to have to continue to think creatively to make sure they don’t get left behind.”
Telematics and use of mobile devices among the top patent trends
RPC says that insurers are not just looking for new types of insurance products but ways to make claims handling more efficient, improve the identification of fraud and sharpen risk analyses and liability predictions in order to make their business models as stream-lined and effective as possible.
RPC adds that patent filings can highlight developing trends within the insurance market. For example, last year there were 12 patent filings related to telematics, where data on driver behaviour is monitored in order to create risk-based products in the motor insurance sector.
There were also 15 filings relating to making more use of mobile devices in the insurance market – ranging from making it easier to get quotes on the go, to managing information across multiple devices, for example connecting data from mobile devices used by doctors and patients.
Paul Joseph adds, “Insurance companies are looking to improve their profitability by capitalising on technologies that are coming into the marketplace and finding ways of creating new products that are both desirable and accessible to customers.
“Through innovations like telematics, which is a huge area of research, and also by maximising the opportunities offered by the prevalence of mobile devices, insurers can unlock huge business potential, so these are certainly trends to watch over the next few years.”
1 Source: World Intellectual Property Organization
2 From 01/01/2003 – 31/12/2012
3 Including filings made by Discovery Holdings CEO, Adrian Gore
