Method of adjusting an insurance premium

• US 20090307011A1
• Filed: 06/04/2008
• Published: 12/10/2009
• Est. Priority Date: 06/04/2008
• Status: Abandoned Application

• Current Assignee: Computer TASK Group Incorporated
• Original Assignee: Computer TASK Group Incorporated
• Inventors: Coyle, Stephen L., Colson, Michael J.
• Application Number:
  US12/156,727
• Publication Number:
  US 20090307011A1
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

The present invention broadly provides an improved method (20) of adjusting, with the aid of a digital computer, an insurance premium charged by a payor to a customer so as to correlate more closely with the expected claims of that customer during a policy period. The improved method broadly includes the steps of: obtaining historical data, including the parameters of a past rate, of the customer (22); determining risk factors that influence or affect the insurance premium (23); creating an algorithm to adjust the insurance premium as a function of the risk factors (24); receiving a request for a rate adjustment (21); and calculating in the computer an adjustment to the premium as a function of the algorithm so as to increase the correlation between the premium to be charged and the expected claims of the customer during the policy period (26).

Claims

1. The method of adjusting an insurance premium charged by a payor to a customer with the aid of a digital computer so as to correlate more closely with the expected claims of that customer during a policy period, comprising the steps of:

obtaining historical data, including the parameters of a past rate, of said customer;

determining risk factors that influence said insurance premium;

creating an algorithm to adjust said insurance premium as a function of said risk factors;

receiving a request for a rate adjustment; and

calculating in said computer an adjustment to said premium as a function of said algorithm so as to increase the correlation between said premium and the expected claims of said customer during said policy period.

2. The method as set forth in claim 1, wherein such policy of insurance is health insurance.

3. The method as set forth in claim 1, wherein said request for rate adjustment is provided by said payor.

4. The method as set forth in claim 1, and wherein said risk factors are determined by a consultant.

5. The method as set forth in claim 4, wherein said algorithm is created by said consultant.

6. The method as set forth in claim 4 wherein said adjustment to said premium is calculated by said consultant.

7. The method as set forth in claim 1 wherein the risk factors for a prospective new customer of said payor are different from the risk factors of a renewal customer of said payor.

8. The method as set forth in claim 1 wherein said payor is not obligated to charge such adjusted premium to said customer.

9. The method as set forth in claim 1 wherein said customer is one of a large number of customers of said payor.

10. The method as set forth in claim 9 wherein said algorithm is determined separately for each of said customers.