System and method for evaluating underwriting requirements

• US 20050131742A1
• Filed: 11/05/2004
• Published: 06/16/2005
• Est. Priority Date: 11/06/2003
• Status: Active Grant

• Current Assignee: Swiss Reinsurance Company
• Original Assignee: Swiss Reinsurance Company
• Inventors: Stabler, Diana M., Hoffman, Nancy J., Pinkham, C. Allen IV, Ivanovic, Brian N., Wright, Edward J.
• Granted Patent: US 8,484,050 B2
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A computer system and method for evaluating underwriting requirements, and for evaluating expected changes in mortality of an insurable class in response to changes in such requirements. In certain embodiments, the method and system involves storing data relating to the requirements, determining expected mortality using a first set of requirements, changing one or more of the requirements and predetermining expected mortality using the changed set of requirements and the stored data. In addition to evaluating proposed changes in underwriting requirements, the system and method may be used in the design and pricing of insurance products.

Claims

1. A computer method for evaluating expected changes in mortality of an insurable class in response to a change in underwriting requirements, comprising the steps of:

a. storing data relating to protective values of a plurality of underwriting requirements;

b. determining an expected mortality for the insurable class using a first set of underwriting requirements;

c. changing one or more of said first set of underwriting requirements; and

d. redetermining the expected mortality for the insurable class using the changed set of underwriting requirements and the stored data relating to protective values.

2. The method of claim 1, wherein the step of storing data relating to protective values of a plurality of underwriting requirements comprises the step of storing at least one of a unique protective value, a shared protective value and a total protective value for at least one of said underwriting requirements.

3. The method of claim 1, wherein the step of determining the expected mortality comprises the step of calculating mortality savings for at least one of the plurality of underwriting requirements.

4. The method of claim 3, further comprising the step of storing mortality savings for said at least one of the plurality of underwriting requirements by age, gender and smoking status.

5. The method of claim 3, wherein the step of calculating mortality savings comprises the step of calculating at least one of unique mortality savings, shared mortality savings and total mortality savings for said at least one of the plurality of underwriting requirements.

6. The method of claim 1, further comprising the step of storing data relating to prevalence of one or more impairments in a population.

7. The method of claim 1, further comprising the step of identifying one or more impairments uncovered by at least one of the plurality of underwriting requirements.

8. The method of claim 7, further comprising the step of determining one or more causes of death eliminated by screening for said one or more impairments uncovered by at least one of the plurality of underwriting requirements.

9. The method of claim 1, further comprising the step of determining total causes of death eliminated by at least one of said first set of underwriting requirements and said changed set of underwriting requirements.

10. The method of claim 9, further comprising the step of comparing expected causes of death for the insurable class with causes of death for a general population.

11. A computerized system for evaluating expected changes in mortality of an insurable class in response to a change in underwriting requirements, comprising:

a. means for storing data relating to protective values of a plurality of underwriting requirements;

b. means for determining an expected mortality for the insurable class using a first set of underwriting requirements;

C. means for changing one or more of said first set of underwriting requirements; and

d. means for redetermining the expected mortality for the insurable class using the changed set of underwriting requirements and the stored data relating to protective values.

12. The system of claim 11, wherein said means for storing data comprises means for storing at least one of a unique protective value, a shared protective value and a total protective value for at least one of said underwriting requirements.

13. The system of claim 11, wherein said means for determining the expected mortality comprises means for calculating mortality savings for at least one of the plurality of underwriting requirements.

14. The system of claim 13, further comprising means for storing mortality savings for said at least one of the plurality of underwriting requirements by age, gender and smoking status.

15. The system of claim 13, wherein said means for calculating mortality savings comprises means for calculating at least one of unique mortality savings, shared mortality savings and total mortality savings for said at least one of the plurality of underwriting requirements.

16. The system of claim 11, further comprising means for storing data relating to prevalence of one or more impairments in a population.

17. The system of claim 11, further comprising means for identifying one or more impairments uncovered by at least one of the plurality of underwriting requirements.

18. The system of claim 17, further comprising means for determining one or more causes of death eliminated by screening for said one or more impairments uncovered by at least one of the plurality of underwriting requirements.

19. The system of claim 11, further comprising means for determining total causes of death eliminated by at least one of said first set of underwriting requirements and said changed set of underwriting requirements..

20. The system of claim 19, further comprising means for comparing expected causes of death for the insurable class with causes of death for a general population.

21. A computer method of designing a life insurance product, comprising the steps of:

a. storing data relating to protective values of a plurality of underwriting requirements;

b. calculating at least one of unique mortality savings, shared mortality savings and total mortality savings for said plurality of underwriting requirements;

c. determining an expected mortality for an insurable class using a first set of underwriting requirements;

d. changing one or more of said first set of underwriting requirements;

e. redetermining the expected mortality for the insurable class using the changed set of underwriting requirements; and

f. using at least one of the determined expected mortality and the redetermined expected mortality, designing a life insurance product.

22. The method of claim 21, further comprising the step of repeating steps d and e to consider a plurality of sets of underwriting requirements.

23. The method of claim 21, further comprising the step of repeating steps d and e in an iterative process so as to achieve a predetermined mortality rate for the insurable class.

24. The method of claim 21, wherein the step of storing data relating to protective values of a plurality of underwriting requirements comprises the step of storing at least one of a unique protective value, a shared protective value and a total protective value for at least one of said underwriting requirements.

25. The method of claim 21, further comprising the step of storing mortality savings for said at least one of the plurality of underwriting requirements by age, gender and smoking status.

26. The method of claim 21, further comprising the step of storing data relating to prevalence of one or more impairments in a population.

27. The method of claim 21, further comprising the step of identifying one or more impairments uncovered by at least one of the plurality of underwriting requirements.

28. The method of claim 27, further comprising the step of determining one or more causes of death eliminated by screening for said one or more impairments uncovered by at least one of the plurality of underwriting requirements.

29. The method of claim 21, further comprising the step of determining total causes of death eliminated by at least one of said first set of underwriting requirements and said changed set of underwriting requirements.

30. The method of claim 29, further comprising the step of comparing expected causes of death for the insurable class with causes of death for a general population.

31. A computerized system for designing a life insurance product, comprising:

a. means for storing data relating to protective values of a plurality of underwriting requirements;

b. means for calculating at least one of unique mortality savings, shared mortality savings and total mortality savings for said plurality of underwriting requirements;

c. means for determining an expected mortality for an insurable class using a first set of underwriting requirements;

d. means for changing one or more of said first set of underwriting requirements;

e. means for redetermining the expected mortality for the insurable class using the changed set of underwriting requirements; and

f. means for using at least one of the determined expected mortality and the redetermined expected mortality in the design of an insurance product.

32. The system of claim 31, wherein the means for storing data relating to protective values of a plurality of underwriting requirements comprises means for storing at least one of a unique protective value, a shared protective value and a total protective value for at least one of said underwriting requirements.

33. The system of claim 31, further comprising means for storing mortality savings for said at least one of the plurality of underwriting requirements by age, gender and smoking status.

34. The system of claim 31, further comprising means for storing data relating to prevalence of one or more impairments in a population.

35. The system of claim 31, further comprising means for identifying one or more impairments uncovered by at least one of the plurality of underwriting requirements.

36. The system of claim 35, further comprising means for determining one or more causes of death eliminated by screening for said one or more impairments uncovered by at least one of the plurality of underwriting requirements.

37. The system of claim 31, further comprising means for determining total causes of death eliminated by at least one of said first set of underwriting requirements and said changed set of underwriting requirements.

38. The system of claim 37, further comprising means of comparing expected causes of death for the insurable class with causes of death for a general population.