Insurance classification plan loss control system
First Claim
1. A loss control system for an insurance classification plan for more accurately setting premium rates by more precisely determining expected losses, the insurance classification plan having a classification plan variable which represents an attribute of plurality of policy holders, the classification plan variable having a plurality of classification plan variable values, wherein each of the policy holders has a premium, an actual loss, a one the plurality of classification plan variable values, and an actual loss ratio,which actual loss ratio is a ratio of the actual loss to the premium, the system comprising:
- a policy holder database for generating a plurality of classification plan variable value signals, wherein each of the classification plan variable value signals is indicative of said classification plan variable value of a policy holder of the plurality of policy holders, and further for generating a plurality of actual loss signals, wherein each of the actual loss signals is indicative of the actual loss of a policy holder of the plurality of policy holders, and further for generating a plurality of premium signals, wherein each premium signal in the plurality of premium signals is indicative of the premium of a policy holder of the plurality of policy holders, and further for generating a plurality of actual loss ratio signals, wherein each of the actual loss ratio signals is indicative of the actual loss ratio of a policy holder of the plurality of policy holders;
predictive means for receiving said plurality of classification plan variable value signals and for receiving said actual loss ratio signals, and further for generating in dependence thereupon a plurality of predicted loss ratio signals, wherein each of the predicted loss ratio signals is indicative of a predicted loss ratio of a policy holder of the plurality of policy holders;
derived actual loss ratio generator means for receiving said plurality of classification plan variable value signals, said actual loss ratio signals and said predicted loss ratio signals, and further for generating in dependence thereupon derived actual loss ratio signals which are indicative of a difference between the predicted loss ratio and the actual loss ratio of a policy holder of the plurality of policy holders; and
whereby said derived actual loss ratio signals are used to determine premium pricing effectiveness.
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Accused Products
Abstract
A loss control system for an insurance classification plan has a policy holder database, a predictive apparatus and a derived actual loss ratio generator. The policy holder database generates signals indicative of the premium, actual loss, a one a plurality of classification plan variable values and an actual loss ratio for each policy holder. The predictive apparatus generates a plurality of predicted loss ratio signals indicative of predicted loss ratios of the policy holders. The derived actual loss ratio generator generates signals which are indicative of a difference between the predicted loss ratio and the actual loss ratio of the policy holders.
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Citations
11 Claims
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1. A loss control system for an insurance classification plan for more accurately setting premium rates by more precisely determining expected losses, the insurance classification plan having a classification plan variable which represents an attribute of plurality of policy holders, the classification plan variable having a plurality of classification plan variable values, wherein each of the policy holders has a premium, an actual loss, a one the plurality of classification plan variable values, and an actual loss ratio,
which actual loss ratio is a ratio of the actual loss to the premium, the system comprising: -
a policy holder database for generating a plurality of classification plan variable value signals, wherein each of the classification plan variable value signals is indicative of said classification plan variable value of a policy holder of the plurality of policy holders, and further for generating a plurality of actual loss signals, wherein each of the actual loss signals is indicative of the actual loss of a policy holder of the plurality of policy holders, and further for generating a plurality of premium signals, wherein each premium signal in the plurality of premium signals is indicative of the premium of a policy holder of the plurality of policy holders, and further for generating a plurality of actual loss ratio signals, wherein each of the actual loss ratio signals is indicative of the actual loss ratio of a policy holder of the plurality of policy holders; predictive means for receiving said plurality of classification plan variable value signals and for receiving said actual loss ratio signals, and further for generating in dependence thereupon a plurality of predicted loss ratio signals, wherein each of the predicted loss ratio signals is indicative of a predicted loss ratio of a policy holder of the plurality of policy holders; derived actual loss ratio generator means for receiving said plurality of classification plan variable value signals, said actual loss ratio signals and said predicted loss ratio signals, and further for generating in dependence thereupon derived actual loss ratio signals which are indicative of a difference between the predicted loss ratio and the actual loss ratio of a policy holder of the plurality of policy holders; and whereby said derived actual loss ratio signals are used to determine premium pricing effectiveness. - View Dependent Claims (2, 3, 4, 5, 6)
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7. A method of controlling loss for an insurance classification plan for setting premium rates which more precisely reflect expected losses, the insurance classification plan having a classification plan variable which represents an attribute of a plurality of policy holders, the classification plan variable having a plurality of classification plan variable values, wherein each of the policy holders has a premium, an actual loss, a one the plurality of classification plan variable values, and an actual loss ratio, which actual loss ratio is a ratio of the actual loss to the premium, the method comprising the steps of:
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generating a plurality of classification plan variable value signals, wherein each of the classification plan variable value signals is indicative of said classification plan variable value of a policy holder of the plurality of policy holders; generating a plurality of actual loss signals, wherein each of the actual loss signals is indicative of the actual loss of a policy holder of the plurality of policy holders; generating a plurality of premium signals, wherein each premium signal in the plurality of premium signals is indicative of the premium of a policy holder of the plurality of policy holders; generating a plurality of actual loss ratio signals, wherein each of the actual loss ratio signals is indicative of the actual loss ratio of a policy holder of the plurality of policy holders; generating, in dependence upon said plurality of classification plan variable value signals and upon said actual loss ratio signals, a plurality of predicted loss ratio signals, wherein each of the predicted loss ratio signals is indicative of a predicted loss ratio of a policy holder of the plurality of policy holders; and generating, in dependence upon said plurality of classification plan variable value signals, said actual loss ratio signals and said predicted loss ratio signals, derived actual loss ratio signals which are indicative of a difference between the predicted loss ratio and the actual loss ratio of a policy holder of the plurality of policy holders; and whereby said derived actual loss ratio signals are used to determine premium pricing effectiveness. - View Dependent Claims (8, 9, 10, 11)
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Specification