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R&D Tax Credits for Insurance

Insurtech is a relatively recent term in insurance. New business activities enabled by digitalisation have allowed insurers to maximise their cost savings and enhance efficiency compared with the traditional industry model.

Some call it the tech revolution, others the information age. Wise insurers see it as a way to cut expenses and provide better services to an ever-broadening market. Whichever term you prefer, modern technology is shaking up the insurance industry in remarkable ways. 

In today’s competitive online markets, insurers must generate quotes and policy underwriting in an instant. In auto insurance, sensors collect data on driver behaviour, enabling policy pricing tailored to each customer. 

In healthcare insurance, products provide a central source of client information for medical professionals, along with an equally intelligent information platform for patients wanting to understand more about their conditions. 

Insurance companies are often undertaking large software development projects to create new and improve existing systems. Often driven by new commercial or regulatory requirements, the types of changes required to modify legacy systems and integrate systems, never previously designed to work together, are the types of projects that typically qualify as R&D. 

If a lack of money to invest in R&D is holding your development back, taking advantage of the R&D tax relief scheme could be your route to establishing your niche in the market.

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Insurance projects that may qualify for R&D tax relief include:

  • Regulatory technology (regtech) to help meet compliance requirements
  • Virtual insurance, e.g.
  • Automated advisors and artificial intelligence robots to underwrite, source, and construct of insurance portfolios
  • the Internet of Things (IoT) to access a range of personal behaviour information, pinpoint data, and dynamic customer characteristics used as inputs for risk calculation, trend identification, and marketing strategies 

Key questions on R&D tax relief answered

What activities can be included in a R&D project?

  • Defining technical objectives
  • Identifying uncertainties
  • Feasibility studies, reviewing new and competing technologies
  • Analysing, designing and developing the technology
  • Producing technical specification or other documents to explain and support the R&D project and advancement
  • Testing the product, process, service or software
  • Planning and managing projects
  • Administration, finance and personnel services specifically required to support R&D activities
  • Training to support R&D

What expenditure can be claimed for in a R&D project?

  • Staff Costs – Employee costs (salary, national insurance and employer pension) are apportioned for their time spent on the R&D project plus any reimbursed associated business expenses
  • Software – Purchased for R&D purposes and costs apportioned for any subsequent use
  • Subcontracted R&D – You can claim 65% of what you paid your R&D subcontractor
  • Utilities & Consumables – Water, fuel, power and material used in the project
  • Prototypes – Produced for R&D purposes

About Easy R&D’s R&D tax credit claim process

Claiming R&D tax relief is a niche.

Here at Easy R&D, we’ll probe your company’s activities to reveal the true extent of your company’s R&D.

Averaging £54,000 per claim, we’re a business built around expert tax professionals, skilled technical report writers, and flawless processes to ensure your R&D claims are successful — with maximum return. You could even reduce your corporation tax bill to zero.

HMRC’s criteria for claiming is purposefully broad, so what qualifies may surprise you.


Interested in claiming R&D tax credits?