Patent may be obtained for insurance related inventions for a comprehensive coverage of the improvements in basic insurance process. Insurance patent falls within business methods patents which are a relatively new species of patents. Nevertheless insurance patents are part and parcel of the asset portfolio of insurance companies.
There are differences of opinion over the issue of patentability of new insurance products. The legal position on insurance patent varies across different jurisdictions. While the USA, Japan, Australia and Singapore are in favor of insurance patent, countries like India, China, Israel, Mexico and most European nations are among those opposed to the proposition.
In the USA patent applications for innovative insurance products as a new method of doing business are examined on the same parameters as any other invention. However, the new insurance product must advance the art in order to be a patentable invention in addition to meeting other criteria.
The emergence of insurance patent has motivated insurance companies to invest in new product development and innovation. However, there is also concern over excessive license fees charged by some insurance patent holders from other user insurance companies.
