The insurance industry continues to be a hotbed of patent innovation. Activity is driven by digitalization, personalization, and growing importance of technologies such as artificial intelligence (AI), Internet of Things, and cybersecurity in insurance documentation and data analytics, predictive risk assessment, fraud detection, and smart policy management. In the last three years alone, there have been over 17,000 patents filed and granted in the insurance industry, according to GlobalData’s report on Blockchain in insurance: claims settlement blockchains. Buy the report here.
According to GlobalData’s Technology Foresights, which uses over 70,000 patents to analyze innovation intensity for the insurance industry, there are 20+ innovation areas that will shape the future of the industry.
Claims settlement blockchains is a key innovation area in blockchain
Claims settlement blockchains refer to the use of blockchain technology in the process of settling insurance claims. It involves utilizing a distributed ledger system to store and verify claim-related information, improving efficiency, transparency, and security in the claims settlement process. The distributed ledger technology allows for simultaneous access, validation, and record updating of digital data across multiple nodes on a computer network in a tamper-proof and transparent manner. It helps in automating claims settlements without the need for a central authority.
GlobalData’s analysis also uncovers the companies at the forefront of each innovation area and assesses the potential reach and impact of their patenting activity across different applications and geographies. According to GlobalData, there are 120+ companies, spanning technology vendors, established insurance companies, and up-and-coming start-ups engaged in the development and application of claims settlement blockchains.
Key players in claims settlement blockchains – a disruptive innovation in the insurance industry
‘Application diversity’ measures the number of applications identified for each patent. It broadly splits companies into either ‘niche’ or ‘diversified’ innovators.
‘Geographic reach’ refers to the number of countries each patent is registered in. It reflects the breadth of geographic application intended, ranging from ‘global’ to ‘local’.
Patent volumes related to claims settlement blockchains
Source: GlobalData Patent Analytics
State Farm Mutual Automobile Insurance (State Farm) is one of the leading patent filers in claims settlement blockchains. It is an early adopter of distributed ledger technologies such as blockchain to reduce expenses and make the claim settlement process more efficient and secure. State Farm and United Services Automobile Association (USAA) launched a blockchain-based project to automate the time-consuming processing of subrogation claims in January 2021. A year later, the company was granted a patent for a method and system of using blockchain to manage and resolve subrogation claims between a claimant and a defendant with arbitration.
Alibaba Group, Toronto-Dominion Bank, and Advanced New Technologies are some of the other leading patent filers in the claims settlement blockchain space.
In terms of application diversity, Pearl held the top position, while Carrier Global and Elna Medical stood in second and third positions, respectively. By means of geographic reach, Memjet Technology leads the pack, followed by Toronto-Dominion Bank and eBay.
To further understand the key themes and technologies disrupting the insurance industry, access GlobalData’s latest thematic research report on Blockchain in Insurance.