The insurance industry continues to be a hotbed of innovation, with activity driven by growing demand for digitalization and personalization. With the 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 Innovation in Insurance: Insurance claims processing automation. Buy the report here.
However, not all innovations are equal and nor do they follow a constant upward trend. Instead, their evolution takes the form of an S-shaped curve that reflects their typical lifecycle from early emergence to accelerating adoption, before finally stabilising and reaching maturity.
Identifying where a particular innovation is on this journey, especially those that are in the emerging and accelerating stages, is essential for understanding their current level of adoption and the likely future trajectory and impact they will have.
90 innovations will shape the insurance industry
According to GlobalData’s Technology Foresights, which plots the S-curve for the insurance industry using innovation intensity models built on over 65,000 patents, there are 90 innovation areas that will shape the future of the industry.
Within the emerging innovation stage, property maintenance sensor networks and automated data annotation are disruptive technologies that are in the early stages of application and should be tracked closely. Fall detection sensing alarms, vehicle motion estimation, and building design risk analysis are some of the accelerating innovation areas, where adoption has been steadily increasing. Among maturing innovation areas are trip metering-based insurance and real-time fault monitoring systems, which are now well established in the industry.
Innovation S-curve for the insurance industry
Insurance claims processing automation is a key innovation area in insurance
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 times while keeping customers updated on the progress.
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’s patent 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. By means 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 Insurance.