Method of determining prior net benefit of obtaining additional risk data for insurance purposes via survey or other procedure
First Claim
1. A method for determining the a priori benefit of an insurance survey, said method comprising the steps of:
- obtaining at least one probability distribution of information to be obtained by a survey, said information relating to at least one insurance risk; and
determining a gross value of the information based at least in part on said at least one probability distribution and a profitability model associated with said information.
1 Assignment
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Accused Products
Abstract
A method is disclosed for determining the prior net benefit of obtaining data relating to an individual risk in an insurance portfolio, via a survey or similar procedure. A risk model is developed at the individual risk level for mathematically estimating the probability of expected loss given a set of information about the risk. The risk model is incorporated into a profitability model. A probability distribution relating to the type of survey information to be obtained is developed, which is used for determining the gross value of obtaining the information. The method produces as an output a quantitative estimation (e.g., dollar value) of the net benefit of obtaining survey data for the risk, calculated as the gross value of the survey less the survey'"'"'s cost, where the benefit of the survey relates to a quantitative increase in predictive accuracy resulting from incorporating the survey data into the predictive model.
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Citations
20 Claims
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1. A method for determining the a priori benefit of an insurance survey, said method comprising the steps of:
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obtaining at least one probability distribution of information to be obtained by a survey, said information relating to at least one insurance risk; and
determining a gross value of the information based at least in part on said at least one probability distribution and a profitability model associated with said information. - View Dependent Claims (2, 3, 4, 5, 6, 7)
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8. An insurance survey method comprising the steps of:
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calculating the net value of obtaining information through a survey prior to carrying out the survey, said information relating to at least one insurance risk; and
determining whether to conduct the survey based at least in part on the net value. - View Dependent Claims (9, 10, 11, 12, 13, 14)
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15. An insurance survey method comprising the steps of:
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calculating a monetary value associated with information to be obtained by way of a survey procedure, prior to conducting the survey procedure, wherein the information relates to at least one insurance risk; and
determining whether to conduct the survey based at least in part on the calculated monetary value. - View Dependent Claims (16, 17, 18, 19, 20)
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Specification