The insurance industry continues to be a hotbed of innovation, with activity driven by growing demand for digitalisation and personalisation. With growing importance of technologies such as telematics, machine learning (ML), big data, deep learning, and data science, insurers are overcoming demographic challenges, low penetration rates, cybercrimes and fraudulent claims. In the last three years alone, there have been over 11,000 patents filed and granted in the insurance industry, according to GlobalData’s report on Cloud in Insurance: Insurance claims processing automation.
According to GlobalData’s Technology Foresights, which uses over 65,000 patents to analyse innovation intensity for the insurance industry, there are 90 innovation areas that will shape the future of the industry.
Insurance claims processing automation is a key innovation area in cloud
The use of software and technology tools to simplify and automate the processing of insurance claims is referred to as insurance claims processing automation. This includes using artificial intelligence (AI) and ML to analyze claims information such as policy plans, health records, and financial information automatically. Automating insurance claims reduces expenses, simplifies settlements, and cuts processing time while keeping customers updated on the progress.
Cloud technology is enabling insurers to use centralized capabilities such as computing power and storage to enable flexibility, expandability, and connectivity.
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 230+ companies, spanning technology vendors, established insurance companies, and up-and-coming start-ups engaged in the development and application of insurance claims processing automation.
Key players in insurance claims processing automation – a disruptive innovation in the insurance industry
‘Application diversity’ measures the number of different applications identified for each relevant patent and broadly splits companies into either ‘niche’ or ‘diversified’ innovators.
‘Geographic reach’ refers to the number of different countries each relevant patent is registered in and reflects the breadth of geographic application intended, ranging from ‘global’ to ‘local’.
Patent volumes related to insurance claims processing automation
Source: GlobalData Patent Analytics
Liberty Mutual is one of the leading patent filers in insurance claims processing automation. The company provides a method for automatically processing a user-supplied claim. The procedure includes obtaining customer identity validation data, gaining access to recent claim evaluation data, calculating predictive impact assessment scores, contrasting the scores with a set of impact assessment limits, and deciding on a reactive response to the claim. Some other key patent filers in insurance claims processing automation include State Farm Mutual Automobile Insurance, Ping An Insurance, SoftBank Group and Hartford Financial Services Group.
In terms of application diversity, Intel leads the pack, with Tractable and State Farm Mutual Automobile Insurance in the second and third positions, respectively. In terms of geographic reach, Swiss Re holds the top position, followed by Cigna and Sony Group.
To further understand the key themes and technologies disrupting the insurance industry, access GlobalData’s latest thematic research report on Cloud Computing in Insurance.