Method and System for Assessing Insurance Risk

• US 20100070309A1
• Filed: 04/15/2009
• Published: 03/18/2010
• Est. Priority Date: 04/15/2008
• Status: Abandoned Application

• Current Assignee: Metropolitan Property and Casualty Insurance Company (MetLife Incorporated)
• Original Assignee: Metropolitan Property and Casualty Insurance Company (MetLife Incorporated)
• Inventors: Deede, Martin W., Jennings, Philip J., McMichael, David
• Application Number:
  US12/424,327
• Publication Number:
  US 20100070309A1
• Time in Patent Office: Days
• US Class Current: 705/4
• 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

Abstract

The disclosed technology provides systems and methods for estimating the risk of loss for a location. A computer implemented method in accordance with the disclosed technology accesses one or more geographical characteristics associated with a geographical address, considers a plurality of perils and for each peril, computes a corresponding measure of peril that indicates a risk of loss at the geographical address from that peril. The corresponding measure of peril is computed based on the geographical characteristic(s) associated with the geographical address. The individual measures of peril are combined to form a combined measure that indicates a combined risk of loss at the geographical address from the plurality of perils. In one embodiment, the combined measure is used to compute an insurance premium for property at the geographical address. The disclosed technology also includes a computer executing software, wherein the executed software causes the computer to perform the steps above.

Claims

1. A computer implemented method for assessing insurance risk of a property, comprising:

preparing a list of a plurality of locations, wherein each location in said list is characterized by an address;

calculating, by a computer, a score for each location based on geographic data specific for said location, wherein said score is obtained from a plurality of risk factors and is specific for a given peril;

combining, by said computer, scores obtained for each peril to arrive at a combined score; and

using said combined score as a factor in the calculation of the insurance premium and/or in underwriting the property.

2. A computer implemented method as in claim 1, wherein said geographic data relates to topographical position, slope angle, elevation or slope aspect of the location.

3. A computer implemented method as in claim 1, wherein said risk factors include at least one of:

(i) distance to coast;

(ii) windpool eligibility determination;

(iii) distance to earthquake faultline;

(iv) distance to sink hole. (v) brushfire risk analysis, (vi) elevation, (vii) historical weather patterns, and (viii) additional variables derived from the aforementioned attributes, both singly and in combination.

4. A computer implemented method as in claim 1, wherein said property is a home.

5. A computer implemented method for estimating risk of loss at a geographical address, comprising:

accessing at least one geographical characteristic associated with the geographical address;

for each peril in a plurality of perils, computing, by a computer, a corresponding measure of peril indicating a risk of loss at the geographical address from that peril, wherein the corresponding measure of peril is computed based on the at least one geographical characteristic associated with the geographical address; and

computing, by said computer, a combined measure indicating a combined risk of loss at the geographical address from the plurality of perils, wherein the combined measure is computed based on the measures of peril corresponding to the plurality of perils.

6. A computer implemented method as in claim 5, wherein computing a corresponding measure of peril comprises applying at least one risk model for that peril to the at least one geographical characteristic associated with the geographical address.

7. A computer implemented method as in claim 5, wherein each measure of peril comprises a relative risk measure that compares risk of loss at the geographical address from that peril to an average risk of loss from that peril.

8. A computer implemented method as in claim 7, wherein computing a combined measure indicating a combined risk of loss at the geographical address from the plurality of perils comprises:

for each peril in the plurality of perils;

computing a corresponding peril percentage indicating a percentage of paid losses that involve that peril, and

computing a corresponding weighted measure of peril based on the peril percentage and the measure of peril; and

computing the combined measure based on the weighted measures of peril corresponding to the plurality of perils.

9. A computer implemented method as in claim 8, wherein:

the corresponding weighted measure of peril is the product of the peril percentage and the measure of peril; and

the combined measure is the sum of all of the corresponding weighted measures of peril.

10. A computer implemented method as in claim 9, further comprising computing an insurance premium for property at the geographical address as a product of the combined measure and a territorial base rate for the geographical address.

11. A computer implemented method as in claim 5, further comprising computing an insurance premium for property at the geographical address based on the combined measure.

12. A computer executing software for estimating risk of loss at a geographical address, wherein the executed software causes the computer to perform steps comprising:

accessing at least one geographical characteristic associated with the geographical address;

for each peril in a plurality of perils, computing a corresponding measure of peril indicating a risk of loss at the geographical address from that peril, wherein computing the corresponding measure of peril takes into account the at least one geographical characteristic associated with the geographical address; and

computing a combined measure indicating a combined risk of loss at the geographical address from the plurality of perils, wherein the combined measure is computed based on the measures of peril corresponding to the plurality of perils.

13. A computer as in claim 12, wherein computing a corresponding measure of peril comprises applying at least one risk model for that peril to the at least one geographical characteristic associated with the geographical address.

14. A computer as in claim 12, wherein each measure of peril comprises a relative risk measure that compares risk of loss at the geographical address from that peril to an average risk of loss from that peril.

15. A computer as in claim 14, wherein computing a combined measure indicating a combined risk of loss at the geographical address from h plurality of perils comprises:

for each peril in the plurality of perils;

computing a corresponding peril percentage indicating a percentage of paid losses that involve that peril, and

computing a corresponding weighted measure of peril based on the peril percentage and the measure of peril; and

computing the combined measure based on the weighted measures of peril corresponding to the plurality of perils.

16. A computer as in claim 15, wherein:

the corresponding weighted measure of peril is the product of the peril percentage and the measure of peril; and

the combined measure is the sum of all of the corresponding weighted measures of peril.

17. A computer as in claim 16, wherein the executed software causes the computer to perform further steps comprising computing an insurance premium for property at the geographical address as a product of the combined measure and a territorial base rate for the geographical address.

18. A computer as in claim 12, wherein the executed software causes the computer to perform further steps comprising computing an insurance premium for property at the geographical address based on the combined measure.