Method, computer program product, and system for calculating a premium for stop loss insurance for a fleet of vehicles
First Claim
1. A computer-implemented method for calculating a premium for stop loss insurance for a fleet of vehicles, the method including:
- determining an expected total loss for the fleet of vehicles;
storing in a computer a maximum individual loss equivalent to a cost of a most expensive vehicle of the fleet;
calculating by the computer a loss frequency by dividing the expected total loss by the maximum individual loss;
storing in the computer a deductible payable by an insurance holder; and
calculating by the computer the premium based on the loss frequency, the maximum individual loss, and the deductible as a stop loss premium for an assumed loss distribution having only losses with a value of one of zero and maximum individual loss.
1 Assignment
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Accused Products
Abstract
A premium for stop loss insurance for a fleet of vehicles is calculated as a stop loss premium for an assumed loss distribution having only losses with a value of one of zero and maximum individual loss. The stop loss premium is calculated based on a loss frequency, a maximum individual loss, and a deductible. The loss frequency is calculated by dividing an expected total loss by the maximum individual loss. Subsets of the fleet of vehicles are associated with different treaty durations. For each treaty duration a stop loss premium is calculated for the fleet of vehicles. Subsequently, for each treaty duration a premium is calculated for the subset of the fleet of vehicles associated with the treaty duration by weighting the stop loss premium, calculated for the fleet of vehicles, with the number of vehicles in the subset. Without having to store and process complex distributions of individual losses of the fleet of vehicles, a worst-case premium for stop loss insurance for the fleet of vehicles can be calculated. Repetitive steps used in the prior art for discretizing and processing distributions of individual losses can be eliminated, and thus, processing time and processing power can be reduced.
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Citations
36 Claims
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1. A computer-implemented method for calculating a premium for stop loss insurance for a fleet of vehicles, the method including:
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determining an expected total loss for the fleet of vehicles;
storing in a computer a maximum individual loss equivalent to a cost of a most expensive vehicle of the fleet;
calculating by the computer a loss frequency by dividing the expected total loss by the maximum individual loss;
storing in the computer a deductible payable by an insurance holder; and
calculating by the computer the premium based on the loss frequency, the maximum individual loss, and the deductible as a stop loss premium for an assumed loss distribution having only losses with a value of one of zero and maximum individual loss. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12)
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13. Computer program product comprising computer program code means for controlling one or more processors of a computer, such that the computer determines an expected total loss for a fleet of vehicles to be insured by stop loss insurance;
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that the computer stores a maximum individual loss equivalent to a cost of a most expensive vehicle of the fleet;
that the computer calculates a loss frequency by dividing the expected total loss by the maximum individual loss;
that the computer stores a deductible payable by an insurance holder; and
that the computer calculates a premium for the insurance based on the loss frequency, the maximum individual loss, and the deductible as a stop loss premium for an assumed loss distribution having only losses with a value of one of zero and maximum individual loss. - View Dependent Claims (14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24)
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25. A computer-based data processing system for calculating a premium for stop loss insurance for a fleet of vehicles, the system including:
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means for determining an expected total loss for the fleet of vehicles;
means for storing a maximum individual loss equivalent to a cost of a most expensive vehicle of the fleet;
means for calculating a loss frequency by dividing the expected total loss by the maximum individual loss;
means for storing a deductible payable by an insurance holder; and
means for calculating the premium based on the loss frequency, the maximum individual loss, and the deductible as a stop loss premium for an assumed loss distribution having only losses with a value of one of zero and maximum individual loss. - View Dependent Claims (26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36)
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Specification