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 9,000 patents filed and granted in the insurance industry, according to GlobalData’s report on Innovation in insurance: vehicle usage based premiums. Buy the report here.

According to GlobalData’s Technology Foresights, which uses over 75,000 patents to analyze innovation intensity for the insurance industry, there are 25+ innovation areas that will shape the future of the industry.

Vehicle usage-based premiums is a key innovation area in insurance

Vehicle usage-based premiums refer to an insurance pricing model that determines insurance premiums based on the actual usage of a vehicle. It involves the use of vehicle tracking apps and telematics devices to collect and analyze data on vehicle operation, such as distance traveled, driving behavior, and other factors, and assess the risk profile of the insured vehicle and calculate the insurance premium accordingly. This approach offers a more personalized and fairer pricing structure compared to traditional fixed premiums based on factors such as age and location.

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 160+ companies, spanning technology vendors, established insurance companies, and up-and-coming start-ups engaged in the development and application of vehicle usage-based premiums.

Key players in vehicle usage-based premiums – 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 vehicle usage-based premiums

Company Total patents (2010 - 2022) Premium intelligence on the world's largest companies
State Farm Mutual Automobile Insurance 697 Unlock Company Profile
The Allstate 220 Unlock Company Profile
Cox Enterprises 115 Unlock Company Profile
Flex 56 Unlock Company Profile
Cambridge Mobile Telematics 47 Unlock Company Profile
Zendrive 32 Unlock Company Profile
Allianz 32 Unlock Company Profile
Discovery 28 Unlock Company Profile
Lear 28 Unlock Company Profile
Alibaba Group 28 Unlock Company Profile
International Business Machines 26 Unlock Company Profile
Huawei Investment & Holding 24 Unlock Company Profile
Ford Motor 23 Unlock Company Profile
Greater Than 21 Unlock Company Profile
NetraDyne 20 Unlock Company Profile
Toyota Motor 19 Unlock Company Profile
Swiss Re Asia Pacific 18 Unlock Company Profile
Tencent 17 Unlock Company Profile
Appy Risk Technologies 17 Unlock Company Profile
Denso 16 Unlock Company Profile
Sony Group 16 Unlock Company Profile
Panasonic 15 Unlock Company Profile
Swiss Re 14 Unlock Company Profile
Verisk Analytics 13 Unlock Company Profile
Zeppelin-Stiftung 12 Unlock Company Profile
Xtract360 12 Unlock Company Profile
Viavi Solutions 11 Unlock Company Profile
General Motors 11 Unlock Company Profile
Hyundai Motor 11 Unlock Company Profile
Hitachi 11 Unlock Company Profile
JC&C Bowers 10 Unlock Company Profile
Pioneer 10 Unlock Company Profile
Capital One Financial 9 Unlock Company Profile
BlackBerry 9 Unlock Company Profile
USAA 8 Unlock Company Profile
UIEvolution 8 Unlock Company Profile
Skymeter 8 Unlock Company Profile
Smartcar 8 Unlock Company Profile
Porsche Automobil 8 Unlock Company Profile
Tata Sons 7 Unlock Company Profile
Advanced New Technologies 7 Unlock Company Profile
Intellectual Ventures Management 7 Unlock Company Profile
Leonard Green & Partners 6 Unlock Company Profile
Kia 6 Unlock Company Profile
Trak Global Group 6 Unlock Company Profile
The Hartford Financial Services Group 6 Unlock Company Profile
The Toronto-Dominion Bank 6 Unlock Company Profile
Mile Auto 5 Unlock Company Profile
OPTIMUM 5 Unlock Company Profile
Rivian Ip 5 Unlock Company Profile

Source: GlobalData Patent Analytics

Among the companies innovating in vehicle usage-based premiums, State Farm Mutual Automobile Insurance is one of the leading patent filers. The auto insurer gives its customers the option of usage-based insurance (UBI) as part of the Drive Safe & Save telematics program to monitor and measure driving factors such as speeding, acceleration, braking, and the miles driven. Participating customers can avail cheaper car insurance rates depending on their driving score and how often and how far they drive their vehicles.

Allstate, Cox Enterprises, and Flex are some of the other key patent filers in the vehicle usage-based premium space.

In terms of application diversity, Advanced New Technologies held the top position, while Cox Enterprises and Flex stood in second and third positions, respectively. By means of geographic reach, Flex leads the pack, followed by Allianz and Discovery.

To further understand the key themes and technologies disrupting the insurance industry, access GlobalData’s latest thematic research report on Insurance

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GlobalData, the leading provider of industry intelligence, provided the underlying data, research, and analysis used to produce this article.

GlobalData’s Patent Analytics tracks patent filings and grants from official offices around the world. Textual analysis and official patent classifications are used to group patents into key thematic areas and link them to specific companies across the world’s largest industries.