Monday, 14 December 2015

Patent litigation insurance: new tools for the job

"Intellectual property insurance is evolving". That's not merely an opinion -- even though it's the title of an opinion piece published in Insurance Day. It's part of the reality of the world in which businesses seek to shift risk as they invest in new products and processes, a world in which the insurance sector is finally being equipped with the informational tools it needs if it's going to provide a realistically affordable service for those innovating businesses.


The author of this piece, Erik Alsegård (CFC Underwriting), explains that data analytics lies at the heart of IP infringement insurance’s move from niche product into the mainstream, deriving support from Aistemos CEO Nigel Swycher. He writes:
Swycher points out there are more than 250,000 SMEs that are exposed to IP risk in the US. “If they are sued it could cost them $1m and potentially put them out of business. However, spread across all SMEs, the risk is less than a household burglary – and who doesn’t insure against that? This looks like a gold mine for anyone willing to engage with the data.”

Moving IP insurance from a niche class of tailored policies to a volume solution for thousands of companies also relies on efcient underwriting which, in turn, builds a good reputation by ofering high service levels. Again, the availability of data analytics with suitable interfaces can assist in creating a streamlined underwriting process.
You can read the article in full by clicking here.

2 comments:

  1. Where does the "250,000" come from? I would have thought the figure was much higher.

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  2. Barclays is selling its risk analytics business to Bloomberg for $777m. This suggests there must be money in it. I guess the policy-purchasers pay in the end http://www.ibtimes.co.uk/barclays-sell-its-risk-analytics-index-solutions-business-bloomberg-520m-1533729

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