Insurtech

Datafox is an expert in making successful R&D Tax Credit claims for those within the Insurtech Industry

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A relatively fresh concept, Insurtech is a subset of Fintech that involves the use of technology for efficient distribution and administration within insurance businesses. It also includes the collection and analysis of customer data with the help of software and technology. Considering that the UK insurance industry is the largest in Europe and the fourth largest in the world, innovation in Insurtech can only mean better customer service and higher tax contributions. In addition, it is expected to help insurance companies provide tailored products and services to their clients in a way that is most convenient to them. 

With the rise of AI, IoT, and digital, the Insurtech sector is witnessing innovation at all levels and is undergoing significant transformation. So much so that almost every major insurance company is investing in R&D and new software development to improve existing systems or develop new ones. Any internal system being developed by insurance companies must be able to analyse data, track policies, process claims, improve user experience, and support back-office functions, like billing and accounting. This is why R&D and software development within the Insurtech sector is often quite extensive. Even so, many of these companies do not consider their R&D and innovation to be eligible for R&D Tax credits or relief. To give a better understanding of what could qualify for R&D Tax credits in the Insurtech sector, here are some examples:

• Designing or developing new software or enhancing an existing one
• Developing new algorithms and methodologies for insurance software
• Designing, developing, and testing client-specific applications
• Compiling and testing source code
• Innovatively using AI for faster claims processing 
• Enhanced data processing using innovative analytics software or model
• Innovatively using Blockchain database for securely storing and processing customer data
• Developing innovative insurance mobile apps