Is R&D Reshaping the Insurance Industry?
Innovative insurance companies are often known as InsurTech. InsurTech is a newly coined term in the Insurance sector. However, we are seeing a rapid rise in InsurTech start-ups across the UK, transforming the way we do insurance. With a focus on technology and innovation, there is a massive potential in the InsurTech domain to help insurance companies augment their processes, become more cost-effective and efficient, and improve the customer experience.
The InsurTech sector is investing a lot in innovation, delivering significant value. Utilising machine learning, AI and big data means InsurTech start-ups can offer their clients a transformed service, compared to typical insurance firms.
Some innovative insurance solutions include:
- Activity trackers to lower costs of insurance.
- Clarity in insurance risks.
- Integrated & automated client-focused solutions.
- More accurate and faster decisions.
- Smart sensors installed in homes.
- Usage-based insurance.
- On demand insurance.
It’s safe to say that these solutions are attracting customers and allowing the insurance industry to reach new markets, two things the sector has previously struggled to achieve. Not to mention, insurance innovation is providing new opportunities for not only clients but insurers themselves. Clients receive cheaper and personalised services, tailored to their exact needs, while insurers get higher ROI and streamlined processes.
Funding Innovation
Conventionally, the insurance sector does not rank high in R&D tax credit claims. But COVID-19, along with the rise in expectations from consumers, meant that insurance companies had to digitalise. With this came an increase in technology focused organisations. Nonetheless, without R&D tax credits, developing innovative new products and solutions is challenging. The InsurTech sector, with the help of R&D tax credits, can now make commercially viable enhancements compared to existing technology.
The R&D tax credit scheme is available for companies who typically engage themselves in R&D activities, no matter how big or small their company’s size is. Companies just need to prove that they have undertaken research and development activities that qualify for R&D tax credit claims. These activities typically include:
- Creating new services, processes, and new products.
- Modifying or changing existing services or products.
If your company, be it in the InsurTech sector, or any other sector, is investing time, effort, and money in developing or improving services, products, or process, you are likely to qualify for R&D Tax Credits.
Get in touch today, to see how FI Group can help your with your claim.
