Systems, Methods, and Apparatus for Utilizing Revenue Information in Composite-Rated Premium Determination

• US 20160012543A1
• Filed: 07/11/2014
• Published: 01/14/2016
• Est. Priority Date: 07/11/2014
• Status: Abandoned Application

• Current Assignee: The Travelers Indemnity Company (The Travelers Cos., Inc.)
• Original Assignee: The Travelers Indemnity Company (The Travelers Cos., Inc.)
• Inventors: Steben, Christine L., Savino, Paul F.
• Application Number:
  US14/328,893
• Publication Number:
  US 20160012543A1
• Time in Patent Office: Days
• US Class Current: 1/1
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

Systems, apparatus, methods, and articles of manufacture provide for determining a premium for an insurance product (e.g., a composite-rated business insurance policy). In one embodiment, revenue information for a business may be used to determine an adjustment factor for calculating premium.

Claims

1. A specially-programmed computerized processing device, comprising:

a computerized processor; and

a computer readable memory device in communication with the computerized processing device, the computer readable memory device storing instructions that when executed by the computerized processor direct the computerized processor to;

determine insurance policy information associated with a business, the insurance policy information comprising;

revenue information associated with the business, and

a property loss limit;

determine, based on the insurance policy information, a revenue-to-property exposure rating adjustment factor; and

determine, based on the revenue-to-property exposure rating adjustment factor, a premium for a business insurance product for the business.

2. The specially-programmed computerized processing device of claim 1, wherein the instructions further direct the computerized processor to:

determine a base rate for the business insurance product; and

wherein to determine the premium for the business insurance product comprises to;

calculate the premium for the business insurance product by multiplying the base rate by the revenue-to-property exposure rating adjustment factor.

3. The specially-programmed computerized processing device of claim 1, wherein the specially-programmed instructions, when executed by the computerized processor, further direct the computerized processor to:

sell, to a customer, the business insurance product based on the premium.

4. The specially-programmed computerized processing device of claim 1, wherein the business insurance product comprises a composite-rated insurance product.

5. The specially-programmed computerized processing device of claim 1, wherein to determine, based on the insurance policy information, a revenue-to-property exposure rating adjustment factor, comprises to direct the computerized processor to:

determine a revenue exposure factor based on the revenue information;

determine a property exposure factor based on the property loss limit;

determine a policy type associated with the business insurance product;

determine a type of business income valuation associated with the business insurance product;

determine a policy-valuation factor based on at least one of;

the policy type and the type of business income valuation; and

determine the revenue-to-property exposure rating adjustment factor based on the revenue exposure factor, the property exposure factor, and the policy-valuation factor.

6. The specially-programmed computerized processing device of claim 1, wherein to determine, based on the insurance policy information, the revenue-to-property exposure rating adjustment factor, comprises to direct the computerized processor to:

determine a revenue exposure factor based on the revenue information;

determine a property exposure factor based on the property loss limit;

determine a policy type associated with the business insurance product;

determine a type of business income valuation associated with the business insurance product;

determine a revenue-to-property exposure rating adjustment factor formula based on at least one of;

the policy type and the type of business income valuation, the revenue-to-property exposure rating adjustment factor formula including a policy-valuation factor; and

determine the revenue-to-property exposure rating adjustment factor based on the revenue-to-property exposure rating adjustment factor formula, the revenue exposure factor, and the property exposure factor.

7. The specially-programmed computerized processing device of claim 6, wherein to determine the revenue-to-property exposure rating adjustment factor based on the revenue-to-property exposure rating adjustment factor formula, the revenue exposure factor, and the property exposure factor, comprises to direct the computerized processor to:

multiply the policy-valuation factor by the revenue exposure factor and by the property exposure factor.

8. The specially-programmed computerized processing device of claim 6, wherein to determine the revenue-to-property exposure rating adjustment factor based on the revenue-to-property exposure rating adjustment factor formula, the revenue exposure factor, and the property exposure factor, comprises to direct the computerized processor to:

determine the revenue-to-property exposure rating adjustment factor by multiplying the policy-valuation factor by the revenue exposure factor and by the property exposure factor, and adding the result of the multiplication to a revenue-to-property exposure rating adjustment factor constant of the revenue-to-property exposure rating adjustment factor formula.

9. The specially-programmed computerized processing device of claim 6, wherein to determine the revenue-to-property exposure rating adjustment factor formula comprises to direct the computerized processor to:

select one of a plurality of revenue-to-property exposure rating adjustment factor formulas.

10. The specially-programmed computerized processing device of claim 9,

wherein the business insurance product does not comprise a business income policy type;

and

wherein to select one of a plurality of revenue-to-property exposure rating adjustment factor formulas comprises to direct the computerized processor to;

select a first revenue-to-property exposure rating adjustment factor formula including a first policy-valuation factor that is greater than a second policy-valuation factor included in a second revenue-to-property exposure rating adjustment factor formula.

11. A non-transitory computer readable memory device storing instructions, the instructions being configured so that when executed by a computerized processor the instructions direct the computerized processor to perform:

determining insurance policy information associated with a business, the insurance policy information comprising;

revenue information associated with the business, and

a property loss limit;

determining, based on the insurance policy information, a revenue-to-property exposure rating adjustment factor; and

determining, based on the revenue-to-property exposure rating adjustment factor, a premium for a business insurance product for the business.

12. The non-transitory computer readable memory device of claim 11, wherein the instructions further direct the computerized processor to:

determine a base rate for the business insurance product; and

wherein to determine the premium for the business insurance product comprises to;

calculate the premium for the business insurance product by multiplying the base rate by the revenue-to-property exposure rating adjustment factor.

13. The non-transitory computer readable memory device of claim 11, wherein the instructions, when executed by the computerized processor, further direct the computerized processor to:

sell, to a customer, the business insurance product based on the premium.

14. The non-transitory computer readable memory device of claim 11, wherein the business insurance product comprises a composite-rated insurance product.

15. The non-transitory computer readable memory device of claim 11, wherein determining, based on the insurance policy information, a revenue-to-property exposure rating adjustment factor, comprises:

determining a revenue exposure factor based on the revenue information;

determining an exposure factor based on the property loss limit;

determining a policy type associated with the business insurance product;

determining a type of extra expense valuation associated with the business insurance product;

determining a policy-valuation factor based on at least one of;

the policy type and the type of extra expense valuation; and

determining the revenue-to-property exposure rating adjustment factor based on the revenue exposure factor, the property exposure factor, and the policy-valuation factor.

16. The non-transitory computer readable memory device of claim 11, wherein determining, based on the insurance policy information, the revenue-to-property exposure rating adjustment factor, comprises:

determining a revenue exposure factor based on the revenue information;

determining an exposure factor based on the property loss limit;

determining a policy type associated with the business insurance product;

determining a type of extra expense valuation associated with the business insurance product;

determining a revenue-to-property exposure rating adjustment factor formula based on at least one of;

the policy type and the type of extra expense valuation, the revenue-to-property exposure rating adjustment factor formula including a policy-valuation factor; and

determining the revenue-to-property exposure rating adjustment factor based on the revenue-to-property exposure rating adjustment factor formula, the revenue exposure factor, and the property exposure factor.

17. The non-transitory computer readable memory device of claim 16, wherein determining the revenue-to-property exposure rating adjustment factor based on the revenue-to-property exposure rating adjustment factor formula, the revenue exposure factor, and the property exposure factor, comprises:

multiplying the policy-valuation factor by the revenue exposure factor and by the property exposure factor.

18. The non-transitory computer readable memory device of claim 16, wherein determining the revenue-to-property exposure rating adjustment factor based on the revenue-to-property exposure rating adjustment factor formula, the revenue exposure factor, and the property exposure factor, comprises:

determining the revenue-to-property exposure rating adjustment factor by multiplying the policy-valuation factor by the revenue exposure factor and by the property exposure factor, and adding the result of the multiplication to a revenue-to-property exposure rating adjustment factor constant of the revenue-to-property exposure rating adjustment factor formula.

19. The non-transitory computer readable memory device of claim 16, wherein determining the revenue-to-property exposure rating adjustment factor formula comprises:

selecting one of a plurality of revenue-to-property exposure rating adjustment factor formulas.

20. The non-transitory computer readable memory device of claim 19,

wherein the business insurance product does not comprise a business income policy type;

and

wherein selecting one of a plurality of revenue-to-property exposure rating adjustment factor formulas comprises;

selecting a first revenue-to-property exposure rating adjustment factor formula including a first policy-valuation factor that is greater than a second policy-valuation factor included in a second revenue-to-property exposure rating adjustment factor formula.