SYSTEM AND METHOD FOR INCREASING CAPACITY IN AN INSURANCE SYSTEM

• US 20090248454A1
• Filed: 03/31/2008
• Published: 10/01/2009
• Est. Priority Date: 03/31/2008
• Status: Active Grant

• Current Assignee: Hartford Fire Insurance Company (The Hartford Financial Services Group, Inc.)
• Original Assignee: Hartford Fire Insurance Company (The Hartford Financial Services Group, Inc.)
• Inventors: Steinberg, William H., Barber, Kevin F., Amigo, Andrew J., Keys, Phyllis J., Hendry, James W.
• Granted Patent: US 7,885,835 B2
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 40/02 Banking, e.g. interest calculation or account maintenance credit or loans G06Q40/03
• CPC Class Codes: G06Q 40/08 Insurance
• CPC Class Codes: G06Q 40/12 Accounting

Abstract

The invention relates, in various aspects to systems, methods, and computer readable media suited for implementing a commonly administered, quota share-based multi-insurer primary insurance system.

Claims

1. A data processing system comprising:

a processor configured for;

determining quota shares to assign each of a plurality of insurance policies for at least two participating insurers, wherein for each of the insurance polices, the quota shares are determined based at least in part on characteristics of the respective insurance policies,

allocating portions of a claim liability or a received premium associated with at least one of the insurance policies among the at least two insurers according to the determined quota shares assigned to the at least one insurance policy, and

outputting a fund transfer amount based on the allocation; and

a memory for storing the quota shares for each of the plurality of insurance policies.

2. The data processing system of claim 1, wherein the processor allocates a portion of received premium among the at least two insurers.

3. The data processing system of claim 2, wherein, the fund transfer amount comprises a portion of the received premium to be transferred to one of the insurers based on the quota shares assigned to the insurance policy.

4. The data processing system of claim 2, wherein the processor is configured to allocate the received premium among at least three insurers.

5. The data processing system of claim 2, wherein the processor is configured to initiate a deposit into an account associated with one of the at least two insurers based on the fund transfer amount.

6. The data processing system of claim 1, wherein the processor is configured to allocate a portion of a claim liability among the at least two insurers.

7. The data processing system of claim 6, wherein the fund transfer amount comprises a portion of a claim liability allocated to at least one of the at least two insurers according to the quota shares assigned to the insurance policy.

8. The data processing system of claim 6, wherein the processor is configured to generate a report to at least one of the insurers including a total of claim liabilities allocated to the insurer according to the stored quota shares.

9. The data processing system of claim 6, wherein the processor is configured to initiate a payment from an account associated with one of the at least two insurers to a claimant based on the fund transfer amount.

10. The data processing system of claim 1, wherein the characteristics of the respective insurance policies upon which the quota share determination is at least in part based comprise at least one of a type of coverage included in the respective policies, liability limits included in the respective policies, premiums associated with the respective policies, and whether the policies are new or renewal policies.

11. The data processing system of claim 1, wherein the processor is configured to determine the quota shares to assign each of the plurality of insurance policies based at least in part on characteristics of the at least two insurers.

12. The data processing system of claim 11, wherein the characteristics of the at least two insurers upon which the quota share determination is at least in part based comprise at least one of underwriting guidelines of the insurers, capacities of the insurers, and appetites of the insurers.

13. The data processing system of claim 1, wherein the processor is configured to determine the quota shares to assign each of the plurality of insurance policies based at least in part on characteristics of the entities requesting the policies.

14. The data processing system of claim 13, wherein the characteristics of the entities requesting the policies upon which the quota share determination is at least in part based comprise at least one of the business of the entities, claims histories of the entities, locations of the entities, and known entity-specific risks.

15. The data processing system of claim 1, wherein the processor is configured to assign, for a given one of the at least two insurers, different quota shares to at least two of the plurality of policies.

16. The data processing system of claim 1, comprising a user interface for accepting manual input of quota shares to assign to respective ones of the insurance policies.

17. The data processing system of claim 1, wherein the processor is configured to obtain reinsurance for at least one of the policies for an insurer participating in the at least one policy.

18. The data processing system of claim 1, wherein the processor is configured to output insurance quotes based on the assigned quota shares.

19. The data processing system of claim 1, comprising a printing device for printing an issued insurance policy, wherein the printed insurance policy includes an indication of the assigned quota shares.

20. The data processing system of claim 1, wherein the memory stores, for at least one of insurance policies, at least three policy numbers, wherein one of the numbers refers to the insurance policy as a whole, and the remaining policy numbers refer to the respective quota shares assigned to the insurance policy for the at the least two insurers.

21. A computer readable medium storing instructions, which when executed by a processor, cause the processor to carry out a method of administering a plurality of insurance policies, the method comprising:

determining quota shares to assign to each of the plurality of insurance policies for at least two participating insurers, wherein for each of the insurance polices, the quota shares are determined based at least in part on characteristics of the respective insurance policies;

storing the quota shares for each of the plurality of insurance policies in a memory;

allocating portions of a claim liability or a received premium associated with at least one of the insurance policies among the at least two insurers according to the determined quota shares assigned to the at least one insurance policy; and

outputting a fund transfer amount based on the allocation.

22. The computer readable medium of claim 21, wherein the computer readable instructions cause the processor to allocate portions of received premiums among the at least two insurers.

23. The computer readable medium of claim 21, wherein the computer readable instructions cause the processor to allocate portions of a claim liability among the at least two insurers.

24. The computer readable medium of claim 23, wherein the computer readable instructions cause the processor to generate a report to at least one of the insurers including a total of claim liabilities allocated to the insurer according to the stored quota shares.

25. The computer readable medium of claim 21, wherein the computer readable instructions cause the processor determine the quota shares to assign each of the plurality of insurance policies based at least in part on characteristics of the at least two insurers.

26. The computer readable medium of claim 21, wherein the computer readable instructions cause the processor determine the quota shares to assign each of the plurality of insurance policies based at least in part on characteristics of the entities requesting the policies.

27. The computer readable medium of claim 21, wherein the computer readable instructions cause the processor to receive manually input quota shares to assign to each of the respective from a user interface.

28. The computer readable medium of claim 21, wherein the computer readable instructions cause the processor to store in the memory, for each of the plurality of insurance policies, at least three policy numbers, wherein one of the numbers refers to the insurance policy as a whole, and the remaining policy numbers refer to the respective assigned shares of the insurance policy among at the least two insurers.

29. A computerized method of administering a plurality of insurance policies comprising:

determining, by a processor, quota shares to assign to each of the plurality of insurance policies for at least two participating insurers, wherein for each of the insurance polices, the quota shares are determined based at least in part on characteristics of the respective insurance policies;

storing, by the processor, the quota shares for each of the plurality of insurance policies in a memory coupled to the processor;

allocating, by the processor, portions of a claim liability or a received premium associated with at least one of the insurance policies among the at least two insurers according to the determined quota shares assigned to the at least one insurance policy; and

outputting, by the processor, a fund transfer amount based on the allocation.

30. The computerized method of claim 29, comprising allocating by the processor portions of received premiums among the at least two insurers.

31. The computerized method of claim 29, comprising allocating by the processor portions of a claim liability among the at least two insurers.

32. The computerized method of claim 29, comprising receiving by the processor manually input quota shares to assign to each of the respective from a user interface.

33. The computerized method of claim 29, comprising storing in the memory, for each of the plurality of insurance policies, at least three policy numbers, wherein one of the numbers refers to the insurance policy as a whole, and the remaining policy numbers refer to the respective assigned shares of the insurance policy among at the least two insurers.