Computer Readable Medium Containing a Set of Computer Readable Instructions for Grid-Based Insurance Rating

• US 20130218607A1
• Filed: 03/27/2013
• Published: 08/22/2013
• Est. Priority Date: 09/10/2010
• Status: Active Grant

• Current Assignee: State Farm Mutual Automobile Insurance Company (State Farm)
• Original Assignee: State Farm Mutual Automobile Insurance Company (State Farm)
• Inventors: Stewart, Curt, Frank, Matthew T., McCormick, Neale, Baughman, Matt, Duvvuri, Rama
• Granted Patent: US 8,738,407 B2
• Time in Patent Office: Days
• US Class Current: 705/4
• CPC Class Codes: G06Q 30/0282 Rating or review of business operators or products
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A computer readable medium containing a set of computer readable instructions that when loaded into a computer configure that computer to: receive demographic data, fire station data, or other data associated with a location; receive a coordinate pair including a longitude and latitude of a location; determine a coordinate grid block bounded by latitude and longitude lines, which grid block is associated with the coordinate pair; query a database for a plurality of existing data associated with the coordinate grid block; and determine a rate based at least in part on the plurality of existing data and the demographic data, fire station data, or other data associated with a location.

Claims

1. A computer readable medium containing a set of computer readable instructions that when loaded into a computer configure that computer to:

receive demographic data, fire station data, or other data associated with a location;

receive a coordinate pair including a longitude and latitude of a location;

determine a coordinate grid block bounded by latitude and longitude lines, which grid block is associated with the coordinate pair;

query a database for a plurality of existing data associated with the coordinate grid block; and

determine a rate based at least in part on the plurality of existing data and the demographic data, fire station data, or other data associated with a location.

2. The computer readable medium containing a set of computer readable instructions as claimed in claim 1, that when loaded into a computer further configure that computer to:

determine a number of latitudinal truncation digits and a number of longitudinal truncation digits;

determine a longitude query value by truncating the longitude of the coordinate pair based on the number of longitudinal truncation digits;

determine a latitude query value by truncating the latitude of the coordinate pair based on the number of latitudinal truncation digits; and

transmit the longitude query value and latitude query value to the database.

3. The computer readable medium containing a set of computer readable instructions as claimed in claim 1, that when loaded into a computer further configure that computer,

wherein the step to determine a rate implements a rate making formula associated with a regulated geographical area wherein the sole source of variable input to the rate making formula is a set of data elements, each of which is associated with one specific coordinate grid block.

4. The computer readable medium containing a set of computer readable instructions as claimed in claim 1, that when loaded into a computer further configure that computer to:

set an index value to an initial value, the index value associated with an current ring of coordinate grid blocks, wherein the current ring of coordinate grid blocks surrounds the coordinate grid block associated with the coordinate pair;

query the database for a current set of existing data associated with the current ring of coordinate grid blocks;

automatically determine that the quantity of existing data retrieved in the target set and the current set is below a threshold level; and

increment the index value in preparation for a subsequent database query.

5. The computer readable medium containing a set of computer readable instructions as claimed in claim 1, that when loaded into a computer further configure that computer to:

determine a grid block size based at least in part on one of;

a peril type,

a quantity of experience data associated with the target coordinate grid block,

a population density associated with the coordinate pair, and

a political subdivision associated with the coordinate pair.

6. The computer readable medium containing a set of computer readable instructions as claimed in claim 1, that when loaded into a computer further configure that computer to:

determine an attribute representative of a property at the location indicated by the coordinate pair;

determine a data filter associated with the representative attribute; and

apply the data filter to the target set.

7. The computer readable medium containing a set of computer readable instructions as claimed in claim 1, that when loaded into a computer further configure that computer to, prior to receiving the coordinate pair:

receive a data value that is relevant to both a first coordinate grid block and a second coordinate grid block;

store in the database a first record including information relating to the data value and associated with the first grid block; and

store in the database a second record including information relating to the data value and associated with the second grid block.

8. The computer readable medium containing a set of computer readable instructions as claimed in claim 1, that when loaded into a computer further configure that computer,

wherein the target set of existing data includes a shared data element that is associated with at least two coordinate grid blocks.