Patenting insurance related business methods: predictability and risk

This paper raises and responds to questions concerning the patentability of business method patents. It explores the utility of patent applications in informing business method innovators of the risks associated with using the patent system. The insurance industry was chosen since its survival depends on an ability to adapt rapidly in the face of unrelenting, unpredictable change. Inventive changes in the insurance industry include new business models and e-business technologies to improve operating efficiency or to build customer focus. Using the European Patent Office's esp@cenet free patent database, a sample of patent applications for insurance industry innovations was retrieved. The paper then analyses the information contained in the patent application documents. A patent application requires public description of the invention in full enough detail to enable a person familiar with that business to produce it. If the application is successful, a granted patent gives the owner the valuable commercial advantage of a 20-year monopoly. If unsuccessful, the applicant will have disclosed the innovation to competitors.