System and method for pool risk assessment

• US 20040186752A1
• Filed: 03/21/2003
• Published: 09/23/2004
• Est. Priority Date: 03/21/2003
• Status: Active Grant

• Current Assignee: Genworth Holdings, Inc. (Genworth Financial Incorporated)
• Original Assignee: Genworth Holdings, Inc. (Genworth Financial Incorporated)
• Inventors: Kwawu, Sena, Conway Justice, Rebecca, Lin, Robert, Kim, David
• Granted Patent: US 8,412,600 B2
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A system and method for assessing risk is provided. The method comprises determining an investment index associated with investment by an insurance company in an insurance pool. Next, the method comprises determining a return index associated with an expected return to the insurance company from participating in the insurance pool; and determining a benefit index based on the investment and return indices. The system for assessing risk comprises an assessment module for assessing risks associated with an insurance company'"'"'s participation in an insurance pool based on at least one of: an investment index associated with the costs of participating in the insurance pool, and a return index associated with the benefits of participating in the insurance pool.

Claims

1. A method for assessing risk, comprising:

determining an investment index associated with investment by an insurance company in an insurance pool;

determining a return index associated with an expected return to the insurance company from participating in the insurance pool; and

determining a benefit index based on the investment and return indices.

2. The method of claim 1 wherein the investment index comprises the product of a casualty index, an insurance pool market share index, an insurance company pool share index, and a policy amount index.

3. The method of claim 1 wherein the return index comprises the product of a total casualty index, the insurance company market share index, and a policy amount index.

4. The method of claim 1 wherein the benefit index comprises the difference between the investment and return indices.

5. The method of claim 1 further comprising entering into the insurance pool if the benefit index is greater than predetermined value.

6. The method of claim 1 further comprising the step of refraining from participating the insurance pool if the benefit index is less than a predetermined value.

7. The method of claim 5 wherein the predetermined value is based on the expected costs of not participating in the insurance pool.

8. The method of claim 1 wherein the investment, return, and benefit indices are determined by an assessment module.

9. The method of claim 1 wherein the risk assessed is based on at least one region.

10. The method of claim 9 wherein at least one region comprises a high risk region.

11. The method of claim 1 wherein at least one of the investment index, the return index, and the benefit index is determined using stochastic modeling/simulation.

12. The method of claim 11 wherein the stochastic modeling/simulation comprises Monte Carlo simulation.

13. A system for assessing risk, comprising:

an assessment module for assessing risks associated with an insurance company'"'"'s participation in an insurance pool based on at least one of;

an investment index associated with the costs of participating in the insurance pool, and

a return index associated with the benefits of participating in the insurance pool.

14. The system of claim 13 wherein the investment index is based on at least one of a total number of casualties resulting from a catastrophic event;

the insurance pool'"'"'s market share;

the insurance company'"'"'s market share; and

the average policy amount.

15. The system of claim 13 wherein the returns index is based on at least one of a total number of casualties resulting from a catastrophic event;

the insurance company'"'"'s market share; and

the average policy amount.

16. The system of claim 13 wherein the risks assessed comprise the benefits and costs associated with participating in an insurance pool.

17. The system of claim 13 further comprising an pool market share module for providing, accessing, or editing information relating to at least one insurance pool'"'"'s market share.

18. The system of claim 13 further comprising an insurance company pool share module for providing, accessing, or editing information relating to at least one insurance company.

19. The system of claim 13 further comprising an insurance company market share module for providing, accessing, or editing information relating to at least one insurance company'"'"'s market share.

20. The system of claim 13 further comprising a policy amount module for providing, accessing, or editing information relating to at least one insurance company'"'"'s policies

21. The system of claim 13 further comprising an administrative module for monitoring, controlling operation of the assessment module, providing, accessing, editing or updating information.

22. The system of claim 13 wherein the assessment module an assessment module assessing risks associated with an insurance company'"'"'s participation in an insurance pool using stochastic modeling.

23. A method for assessing risk associated with participating in an insurance pool, comprising:

selecting at least one particular geographic unit;

determining a benefit index based on at least one of the costs of participating in the insurance pool and the expected benefit of participating in the insurance pool; and

determining whether to participate in the insurance pool based in part on the value of the benefit index.

24. The method of claim 23 where the at least one particular geographic unit has a high likelihood of experiencing a catastrophic event.

25. The method of claim 23 wherein the at least one particular geographic unit comprises at least one of a city, county, municipality, state, province, area, region, commonwealth, continent or country.

26. The method of claim 23 wherein the costs of participating in the insurance pool comprise an investment index.

27. The method of claim 23 wherein the investment index is based on at least one of the total number of casualties resulting from the catastrophic event, the insurance pool'"'"'s market share, the insurance company'"'"'s pool share, and the insurance company'"'"'s average policy face amount.

28. The method of claim 27 wherein the investment index comprises the product of the total number of casualties resulting from the catastrophic event, the insurance pool'"'"'s market share, the insurance company'"'"'s pool share, and the insurance company'"'"'s average policy face amount.

33. The method of claim 24 wherein the step of determining whether to participate in the insurance pool is based in part difference between the expected benefits and costs of participating in the insurance pool.

29. The method of clam 23 wherein the expected benefits of participating in the insurance pool is based on at least one of the total number of casualties resulting from the catastrophic event, the insurance pool'"'"'s market share, the insurance company'"'"'s market share, and the insurance company'"'"'s average policy face amount.

30. The method of claim 29 wherein the expected benefits of participating in the insurance pool comprise a return index.

31. The method of claim 30 wherein the return benefit is based on at least one of the total number of casualties resulting from the catastrophic event, the insurance company'"'"'s market share, and the insurance company'"'"'s average policy face amount.

32. The method of claim 31 wherein the return benefit comprises the product of the total number of casualties resulting from the catastrophic event, the insurance company'"'"'s market share, and the insurance company'"'"'s average policy face amount.

34. A system for assessing risk, comprising:

means for determining the costs associated with participating in an insurance pool;

means for determining the expected benefits associated with participating in an insurance pool; and

means for determining whether to participate in an insurance pool.

35. A computer-usable medium for assessing risk, comprising:

code for determining the costs associated with participating in an insurance pool;

code for determining the expected benefits associated with participating in an insurance pool; and

code for determining whether to participate in an insurance pool.

36. A computer-usable medium for assessing risk, comprising:

code for assessing risks associated with participation in a pool based on at least one of;

an investment index associated with the costs of participating in the pool, and

a return index associated with the benefits of participating in the pool.

37. The computer-usable medium of claim 36 wherein the code for assessing risks performs stochastic modeling to assess the risks associated with participation in the pool.