Start by having a complete understanding of your own insurance invention. Understand and be able to articulate the specific problem or problems that your invention solves. That is, be prepared. Be prepared to explain not only how your invention works but that it will work. The fact that your invention actually will work to solve their problem will not necessarily be obvious to those you try to sell your invention to. If it were, it might not be patentable subject matter.

Recognize that the insurance industry is not known, in general, for its innovation. Clearly, there are some innovative leaders in the insurance industry but most insurers are followers. And, surprisingly, although the business of insurance involves the assumption of risk, most insurance companies are not risk takers in a business sense. In this regard they behave like any other company. In reality what insurance companies do is participate in the management of risk. They don't insure one life, they insure tens or hundreds of thousands of lives, businesses, or events. The risk insurance companies assume in doing this is not that great. The law of large numbers mellows out the risk and makes the overall result of insuring large numbers rather predictable.

So, in presenting any new insurance idea to an insurance company, you ought to do research and development in advance. The idea is to anticipate the questions and concerns an insurer will have about the design, marketability, pricing, administration, valuation, and legal or regulatory issues they may see as impediments to implementing a product based on your invention in their company. First, by doing this in advance you will have determined that your invention is practical before making any presentations and, with these issues already adequately addressed, you will be able to focus on whether or not you have found the "right" insurer.

The first step in any sales process is "to disturb". That is, make the prospective customer for your invention realize that they have the problem your invention solves. But, be reasonable. Not everybody needs your solution. Eskimos don't need snow, skiers do. So, metaphorically speaking, you would be much more successful interesting a ski resort located in a marginal area relative to natural snow production in your new, innovative, more efficient snow making process than you would an Eskimo village. Therefore, step one is identify insurance companies that have the problem (or, would love to have the problem) that your invention solves.

To understand the "would love to have the problem" category of companies we'll go back to the metaphor. There may be a mountainous area with fairly steep ski-able slopes, with temperatures cold enough to support snow, but with little or no regular participation. No one ever thought of putting a ski resort there because there was never any snow there. You're more efficient and economical snow making process solves the problem they didn't know they had and they could be an excellent candidate for your invention.

Of course, getting anyone, any insurance company interested in implementing any new idea will require that they change. What this means is that you will have, at least, two sales to make - your invention as a solution to their problem and a reason for them to change. Even though you are successful in convincing an insurer that your invention will work and solve a problem that they have, you may be told that this is just not the right time in their product development cycle. Or, some other activity is taking their full attention right now. You will be praised all the way out the door.

Therefore, an additional selection criteria is to find an insurance company ready for or interested in change so all you have to do is sell your invention. These types of companies would include insurers who are at the right point in their product development cycle and are currently in the process of updating and changing their portfolio in areas in which your invention could apply. They are probably going to be very interested in sprucing up the competitive position of their insurance product portfolio. So, the opportunity to gain access, and some level of exclusivity, to the new and exciting patented product technology you are offering to them may be of great interest.

Outsiders to the insurance industry will always have a more difficult time selling an insurance invention than insiders with connections or pre-existing relationships. Outsiders, generally, would tend to have less credibility when dealing with an insurance company and, because of their lack of experience in the industry, outsiders might, themselves, feel and appear to be more awkward in trying to develop a relationship with an insurance company. For an individual inventor in this position the only advice is find a friend. Partner with someone who has the insurance skills you lack and who can address the industry problems which your invention solves with confidence.

So, the steps so far are:

• Understand and be able to articulate your own invention.
• Prepare research that will make it easier for other to understand that your invention will work.
• Disturb the right people.
• Focus on those companies ready for change.
• Otherwise, be prepared to sell change first, then your invention.
• If you are an outsider, find an insider friend.

The last thing, of course, is be ready for defeat. A salesman does not, typically, get a lot of positive reinforcement. As brilliant as your idea may be, a very small percentage of the insurance companies you contact will be ready for it.

And, … another thing. Your idea may not be brilliant at all. Yes, its inventive by definition especially if your patent has already been issued. But, it may not be brilliant. A significantly small percentage of issued patents result in commercially successful inventions. Be ready to join that club. Know when to quit … and move on to the next great thing. Perseverance and determination pay off a whole lot more than their antonyms.