Insurtech and R&D Tax Relief
In any sector, you can find an insurance policy. In the past, the insurance sector struggled to qualify for R&D tax relief. However, the development of modern technology and its application in the insurance sphere gave rise to insurtech, which now enjoys a lean digital operational model, and thus has become a strong candidate for the R&D tax credits scheme.
As insurtech businesses are enhancing the customer experience, they are continually creating R&D worthy innovation
Do you have a qualifying R&D project? Check below.
Insurtech brought innovative offerings that have helped the insurance industry reconnect with their customers. By leveraging emerging technology, such as artificial intelligence, machine learning, and advanced analytics, insurtech is able to drive exponential innovation in this sector.
Although the industry is still in its infancy, the UK is already considered the world capital for insurtech and there is more funding available through the R&D tax relief scheme. With most insurtech products relying on proprietary technology, there is a high likelihood that your business may qualify for R&D tax credits, helping to fund your business.
What is R&D tax credit?
The UK Government’s Research and Development Tax Relief scheme is a way to encourage and reward companies that are investing in innovation.
What qualifies as innovation?
For tax purposes, R&D takes place when you are creating something that will advance the overall knowledge or capability in the field of science and technology. In simple terms, if you are solving industry problems, creating new software, a new process or materials, you qualify. Alternatively, you can simply be changing or modifying existing products, processes or services, these activities may qualify.
Most insurtech projects come with their own set of challenges, and the process of solving these challenges may be eligible for R&D tax credits. New software requirements, technologies and approaches can all count toward an R&D tax credits claim.
- Have you created a software that increases the performance of other technology out there?
- Have you built a software that integrates third party systems?
- Have you developed new data analytics tools?
- Have you created software that incorporates blockchain, in a new way?
- Have you developed new encryption and protection software for our platform that wasn’t available before?
- Have you created an app that provides robo-advice through a digital customer interface?
- Do you have a product that sells insurance in an innovative way that hasn’t been done before?
- Are you creating a product that is fully automated that hasn’t been available before?
- Have you developed a new machine-learning technique to process data or to personalise products?
- Have you made innovative advances in A.I. that add to the insurtech sector as a whole?
- Have you created technology that improves and personalises customer service?
- Have you developed advanced analytics that will enhance the availability of insurance?
See whether your company projects qualify for R&D tax relief
R&D tax relief scheme is remarkably inclusive but HMRC has specific guidelines on what companies can claim the benefit. Find out whether your project qualifies by clicking on the eligibility quiz button.
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Novel was created and developed by R&D tax relief consultants with decades of experience to help businesses support and sustain their operations by claiming R&D tax relief.