Interactive system and method for selling insurance

• US 7,080,020 B1
• Filed: 01/04/2000
• Issued: 07/18/2006
• Est. Priority Date: 01/04/2000
• Status: Expired due to Fees

• Current Assignee: Swiss Reinsurance Company
• Original Assignee: Employers Reinsurance Corp. (Swiss Re AG)
• Inventors: Klaus, Robert
• Primary Examiner(s): Thomas, Joseph
• Assistant Examiner(s): Morgan, Robert W.
• Application Number:
  US09/477,057
• Time in Patent Office: 2,387 Days
• Field of Search: 705/4, 705/36, 705/35
• US Class Current: 705/4
• CPC Class Codes: G06Q 30/02 Marketing; Price estimation or determination; Fundraising
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

An interactive system and method of selling reinsurance involves preliminary steps of enrolling a plurality of primary insurers or cedents to use the system, formulating reinsurance proposals to make available to the cedents through the interactive system, posting the proposals on a secure server in the system and calculating and allocating risk capacity to the proposals and cedents. Each cedent is provided secure access to a list of proposals being made available to it. Upon selection and submission of a proposal by a cedent, the system server generates an acceptance notice, transfers the information on the proposal to a listing of agreements entered into by that cedent, recalculates the available allocated capacity and withdraws from availability any proposals whose acceptance would reduce the available allocated capacity below a selected amount.

Claims

1. A method for a risk carrier to assume monetary risks from a plurality of risk cedents using a server associated with the risk carrier, the server coupled to a database, said method comprising the steps of:

(a) calculating an available risk assumption capacity for the risk carrier including at least one of a per occurrence capacity and a cedent capacity, the per occurrence capacity is a predetermined amount of risk that the risk carrier may assume for a specific type of risk, the cedent capacity is a predetermined amount of risk that the risk carrier may assume for a specific cedent;

(b) identifying risk cedents having a class of risk that includes at least one type of risk that the risk carrier is interested in assuming under predetermined terms;

(c) controlling access to the server by the risk carrier and maintaining data stored within the database including storing data records relating to each of the identified risk cedents and providing to the identified risk cedents secure access to selected data records;

(d) posting by the risk carrier on the server associated with the risk carrier a plurality of proposals to assume selected risks of the identified risk cedents such that the proposals are viewable through a computer network, each proposal including financial terms and specific contractual language proposed by the risk carrier for assuming selected risks of the identified risk cedents, the proposals are not offers to be accepted by the identified risk cedents;

(e) initializing on the server the available risk assumption capacity of the risk carrier;

(f) enabling electronic submission by any one of the identified cedents of one of the proposals to assume selected risks associated with the cedent as an offer by the cedent to cede a selected risk for acceptance by the risk carrier;

(g) electronically accepting, by the risk carrier, the offer submitted by one of the identified cedents to form a contract;

(h) electronically recalculating the available risk assumption capacity upon accepting the offer; and

(i) using the server associated with the risk carrier for electronically withdrawing from availability for submission as an offer any of the proposals whose acceptance by the risk carrier would reduce the available risk assumption capacity, as recalculated, below a selected amount.

2. The method as in claim 1 further comprising the step of:

(a) electronically providing confirmation of acceptance of the offer by the risk carrier to the cedent which submitted the offer.

3. The method as in claim 1 further comprising the step of:

(a) posting the offer which was accepted on the server so as to be viewable by the cedent which submitted the offer.

4. The method as in claim 1 wherein said step of posting by the risk carrier on the server associated with the risk carrier a plurality of proposals further comprises:

(a) providing by the risk carrier access to the server through the computer network, and limiting access of each of the identified cedents to view only the proposals which are specific to the cedent; and

(b) posting by the risk carrier on the server contracts already entered into between the risk carrier and at least one cedent wherein the contracts are viewable by only the risk carrier and the corresponding cedent.

5. A method for a risk carrier to assume monetary risks from a plurality of risk cedents using a server associated with the risk carrier, the server coupled to a database, said method comprising the steps of:

(a) calculating an available risk assumption capacity for the risk carrier including at least one of a per occurrence capacity and a cedent capacity, the per occurrence capacity is a predetermined amount of risk that the risk carrier may assume for a specific type of risk, the cedent capacity is a predetermined amount of risk that the risk carrier may assume for a specific cedent;

(b) identifying risk cedents having a class of risk that includes at least one type of risk that the risk carrier is interested in assuming under predetermined terms;

(c) controlling access to the server by the risk carrier and maintaining data stored within the database including storing data records relating to each of the identified risk cedents and providing to the identified risk cedents secure access to selected data records;

(d) posting by the risk carrier on the server associated with the risk carrier a proposal to assume a monetary risk of the identified risk cedents such that the proposal is viewable by the identified risk cedents through a computer network, each proposal including financial terms and specific contractual language proposed by the risk carrier for assuming a monetary risk of the identified risk cedents, the proposals are not offers to be accepted by the identified risk cedents;

(e) initializing on the server the available risk assumption capacity of the risk carrier;

(f) enabling at least one of the identified risk cedents to respond to the proposal to assume a monetary risk by electronically submitting to the risk carrier an offer to cede the monetary risk for acceptance by the risk carrier;

(g) electronically accepting, by the risk carrier, the offer submitted by one of the identified risk cedents to form a contract;

(h) electronically recalculating the available risk assumption capacity upon accepting the offer; and

(i) using the server associated with the risk carrier for electronically withdrawing the proposal from availability for submission as an offer to cede the monetary risk if further acceptance of the offer would reduce the available risk assumption capacity, as recalculated, below a selected amount.

6. The method as in claim 5 further comprising the step of:

(a) electronically providing confirmation of acceptance of the offer by the risk carrier to the cedent which submitted the offer.

7. The method as in claim 5 further comprising the step of:

(a) posting the offer which was accepted on the server so as to be viewable by the cedent which submitted the offer; and

(b) posting on the server contracts already entered into between the risk carrier and at least one cedent wherein the contracts are viewable by only the risk carrier and the corresponding cedent.

8. A method for ceding a plurality of monetary risks from a risk cedent to a risk carrier using a server associated with the risk carrier, the server coupled to a database, said method comprising the steps of:

(a) calculating an available risk assumption capacity for the risk carrier including at least one of a per occurrence capacity and a cedent capacity, the per occurrence capacity is a predetermined amount of risk that represents a maximum amount of total risk that the risk carrier may assume for a specific type of risk, the cedent capacity is a predetermined amount of risk that represents a maximum amount of total risk that the risk carrier may assume for a specific cedent;

(b) identifying a risk cedent having a class of risk that includes at least one type of risk that the risk carrier is interested in assuming under predetermined terms;

(c) controlling access to the server by the risk carrier and maintaining data stored within the database including storing data records relating to the identified risk cedent and providing to the identified risk cedent secure access to selected data records;

(d) posting by the risk carrier on the server associated with the risk carrier a plurality of proposals to assume a plurality of risks of the identified risk cedent such that the proposals are viewable by the cedent through a computer network, each proposal including financial terms and specific contractual language proposed by the risk carrier for assuming at least one risk of the identified risk cedent, the proposals are not offers to be accepted by the identified risk cedents;

(e) initializing on the server the available risk assumption capacity of the risk carrier;

(f) enabling electronic submission by the cedent of any one of the proposals to assume a plurality of risks as an offer to cede the plurality of risks for acceptance by the risk carrier;

(g) electronically accepting, by the risk carrier the offer submitted by the cedent to form a contract;

(h) electronically recalculating the available risk assumption capacity upon accepting the offer; and

(i) using the server, associated with the risk carrier, for electronically withdrawing from availability for submission as an offer any of the proposals which have not been submitted for acceptance and whose acceptance would reduce the available risk assumption capacity, as recalculated, below a selected amount.

9. The method as in claim 8 further comprising the step of:

(a) electronically providing confirmation of acceptance of the offer by the risk carrier to the cedent.

10. The method as in claim 8 further comprising the step of:

(a) posting the offer which was accepted on the server so as to be viewable by the cedent.

11. A method for a reinsurer to sell treaty type reinsurance to a plurality of selected cedents using a server associated with the reinsurer, the server coupled to a database, said method comprising the steps of:

(a) calculating an available risk assumption capacity for the reinsurer including at least one of a per occurrence capacity and a cedent capacity, the per occurrence capacity is a predetermined amount of risk that the reinsurer may assume for a specific type of risk, the cedent capacity is a predetermined amount of risk that the reinsurer may assume for a specific cedent;

(b) evaluating by a reinsurer an insurance portfolio of each of a plurality of cedents;

(c) developing proposals to reinsure selected insurance portfolios of the selected cedents;

(d) controlling access to the server by the reinsurer and maintaining data stored within the database including storing data records relating to each of the selected cedents and providing to the selected cedents secure access to selected data records;

(e) posting the proposals by the reinsurer on the server associated with the reinsurer such that the proposals are viewable through a computer network, each proposal including financial terms and specific contractual language proposed by the reinsurer to reinsure selected insurance portfolios of the selected cedents using treaty type reinsurance, the proposals are not offers to be accepted by the selected cedents;

(f) initializing on the server the available risk assumption capacity of the reinsurer;

(g) providing by the reinsurer access through the computer network to the selected cedents to view the proposals;

(h) enabling electronic submission by any one of the selected cedents of one of the proposals as an offer to cede a selected risk for acceptance by the reinsurer;

(i) receiving the offer from the cedent by the reinsurer;

(j) electronically accepting, by the reinsurer, the offer from the cedent to form a contract;

(k) electronically recalculating the available risk assumption capacity upon accepting the offer; and

(l) using the server associated with the reinsurer for electronically withdrawing from availability for submission as an offer to cede a selected risk any of the proposals whose acceptance would reduce the available risk assumption capacity, as recalculated, below a selected amount.

12. The method as in claim 11 further comprising the step of:

(a) electronically providing confirmation of acceptance of each of the offers by the reinsurer to the cedent which submitted the offer.

13. The method as in claim 11 further comprising the step of:

(a) posting each of the offers which are accepted on the server so as to be viewable by the cedent which submitted the offer.

14. The method as in claim 11 wherein said step of posting the proposals by the reinsurer on the server further comprises the steps of:

(a) providing by the risk carrier access to the server through the computer network, and limiting access of each of the selected cedents to view only the proposals which are specific to the selected cedent.

15. The method as in claim 11 wherein the proposals include an amount of coverage corresponding to a maximum amount of coverage to be provided and said method further comprises the steps of:

(a) enabling the cedents to electronically decrease the amount of coverage of one of the proposals before submission of the proposal as an offer for acceptance by the reinsurer; and

(b) electronically calculating a premium based on the amount of coverage selected by the cedent.

16. A method for a reinsurer to sell reinsurance for a plurality of classes of insurance to a plurality of cedents using a server associated with the reinsurer, the server coupled to a database, said method comprising the steps of:

(a) calculating an available risk assumption capacity for the reinsurer including at least one of a per occurrence capacity and a cedent capacity, the per occurrence capacity is a predetermined amount of risk that the reinsurer may assume for a specific type of risk, the cedent capacity is a predetermined amount of risk that the reinsurer may assume for a specific cedent;

(b) developing, for each of the classes of insurance, a proposal to reinsure insurance portfolios of the cedents;

(c) controlling access to the server by the reinsurer and maintaining data stored within the database including storing data records relating to each of the cedents and providing to the cedents secure access to selected data records;

(d) posting the proposals by the reinsurer on the sever associated with the reinsurer such that selected ones of the proposals are viewable by selected ones of the cedents through a computer network, each proposal including financial terms and specific contractual language proposed by the reinsurer for assuming selected risks of a selected cedent, the proposals are not offers to be accepted by the selected cedents;

(e) initializing on the server a cedent capacity for each of the cedents and a per occurrence capacity for each of the proposals;

(f) enabling electronic submission by any one of the cedents of one of the proposals to assume selected risks associated with the cedent as an offer to cede a selected risk for acceptance by the reinsurer;

(g) electronically accepting by the reinsurer the offer submitted by one of the selected cedents to form a contract;

(h) electronically recalculating the cedent capacity of the cedent and the per occurrence capacity of the proposal upon accepting the offer; and

(i) using the server associated with the reinsurer for electronically withdrawing from availability for submission as an offer any of the proposals whose acceptance would reduce the cedent capacity and the per occurrence capacity, as recalculated, below a selected amount.

17. The method as in claim 16 further comprising the step of:

(a) electronically providing confirmation of acceptance of the offer by the reinsurer to the cedent which submitted the offer.

18. The method as in claim 16 further comprising the step of:

(a) posting the offer which was accepted on the server so as to be viewable by the cedent which submitted the offer.

19. The method as in claim 16 wherein posting the proposals by the reinsurer on the sever associated with the reinsurer further comprises the steps of:

(a) providing by the reinsurer access to the server through the computer network, and limiting access of each of the cedents to view only the proposals which are specific to the cedent.

20. The method as in claim 16 wherein said proposals include an amount of coverage corresponding to a maximum amount of coverage to be provided and said method further comprises the steps of:

(a) enabling the cedents to electronically decrease the amount of coverage of one of the proposals before submission of the proposal as an offer for acceptance by the reinsurer; and

(b) electronically calculating a premium based on the amount of coverage selected by the cedent.

21. A method for a risk carrier to assume monetary risks from a plurality of risk cedents using a computer coupled to a database included within a computer network, the computer associated with the risk carrier, said method comprising the steps of:

(a) calculating an available risk assumption capacity for the risk carrier including a per occurrence capacity and a cedent capacity, the per occurrence capacity is a predetermined amount of risk that represents a maximum amount of total risk that the risk carrier may assume for a specific type of risk, the cedent capacity is a predetermined amount of risk that represents a maximum amount of total risk that the risk carrier may assume for a specific cedent;

(b) identifying risk cedents having a class of risk that includes at least one type of risk that the risk carrier is interested in assuming under predetermined terms;

(c) controlling access to the computer by the risk carrier and maintaining data stored within the database including storing data records relating to each of the identified risk cedents and providing to the identified risk cedents secure access to selected data records;

(d) posting, by the risk carrier, on the computer network, a plurality of proposals to assume selected risks of the identified risk cedents such that the proposals are viewable through the computer network, each proposal including financial terms and specific contractual language proposed by the risk carrier for assuming selected risks of the identified risk cedents, the proposals are not offers to be accepted by the identified risk cedents;

(e) initializing on the computer network the available risk assumption capacity of the risk carrier including the per occurrence capacity and the cedent capacity for the risk carrier;

(f) enabling electronic submission by any one of the cedents of one of the proposals associated therewith as an offer to cede a selected risk for acceptance by the risk carrier;

(g) electronically accepting, by the risk carrier, the offer submitted by one of the risk cedents to form a contract;

(h) electronically recalculating the available risk assumption capacity including the per occurrence capacity and the cedent capacity for the risk carrier upon accepting the offer; and

(i) electronically withdrawing from availability or submission as an offer any of the proposals whose acceptance would reduce the available risk assumption capacity including the per occurrence capacity and the cedent capacity for the risk carrier, as recalculated, below a selected amount, such that electronic submission of any of the proposals which have been withdrawn from availability is prevented.

22. A network based system for assuming monetary risks by a risk carrier from a plurality of risk cedents, said system comprising:

a client system comprising a browser;

a database for storing information relating to the plurality of risk cedents; and

a server system associated with the risk carrier configured to be coupled to said client system and said database, said server system comprising an accessing component that enables the risk carrier to control access to the server system and maintain data stored within the database including storing data records relating to the risk cedents and providing to the risk cedents secure access to selected data records, said server system further configured to;

calculate an available risk assumption capacity for the risk carrier including at least one of a per occurrence capacity and a cedent capacity, said per occurrence capacity is a predetermined amount of risk that the risk carrier may assume for a specific type of risk, said cedent capacity is a predetermined amount of risk that the risk carrier may assume for a specific cedent;

identify risk cedents having a class of risk that includes at least one type of risk that the risk carrier is interested in assuming under predetermined terms;

receive from the risk carrier a plurality of proposals to assume selected risks of the identified risk cedents such that said proposals are viewable through said server, each proposal including financial terms and specific contractual language proposed by the risk carrier for assuming selected risks of the identified risk cedents, the proposals are not offers to be accepted by the identified risk cedents;

store said available risk assumption capacity of the risk carrier in said database;

receive from the identified cedents via said client system one of said proposals to assume selected risks associated with the cedent as an offer by the cedent to cede a selected risk for acceptance by the risk carrier;

enable the risk carrier to accept said offer submitted by one of the identified cedents to form a contract;

recalculate said available risk assumption capacity upon accepting said offer; and

withdraw from availability for submission as an offer any of said proposals whose acceptance by the risk carrier would reduce said available risk assumption capacity, as recalculated, below a selected amount.

23. A system in accordance with claim 22 wherein said server system further configured to transmit a confirmation of acceptance of said offer by the risk carrier to a client system associated with the cedent which submitted said offer.

24. A system in accordance with claim 22 wherein said server system further configured to post said accepted offer such that said accepted offer is viewable by the cedent which submitted said offer via said client system.

25. A system in accordance with claim 22 wherein said server system further configured to restrict access of each of the identified cedents to view only said proposals which are specific to the cedent.

26. A network based system for a reinsurer to sell reinsurance for a plurality of classes of insurance to a plurality of cedents, said system comprising:

a client system comprising a browser;

a database for storing information relating to the plurality of cedents; and

a server system associated with the reinsurer configured to be coupled to said client system and said database, said server system comprising an accessing component that enables the reinsurer to control access to the server system and maintain data stored within the database including storing data records relating to the plurality of cedents and providing to the cedents secure access to selected data records, said server system further configured to;

calculate an available risk assumption capacity for the reinsurer including at least one of a per occurrence capacity and a cedent capacity, said per occurrence capacity is a predetermined amount of risk that represents a maximum amount of total risk that the reinsurer may assume for a specific type of risk, said cedent capacity is a predetermined amount of risk that represents a maximum amount of total risk that the reinsurer may assume for a specific cedent;

generate, for each of said classes of insurance, a proposal for the reinsurer to reinsure insurance portfolios of the cedents;

post proposals such that selected ones of said proposals are viewable by selected ones of the cedents, each proposal including financial terms and specific contractual language proposed by the risk carrier for assuming selected risks associated with selected cedents, the proposals are not offers to be accepted by the selected cedents;

store a cedent capacity for each of the cedents and a per occurrence capacity for each of said proposals;

receive from any one of the cedents via said client system one of said proposals to assume selected risks associated with the cedent as an offer by the cedent to cede a selected risk for acceptance by the reinsurer;

enable the reinsurer to accept said offer submitted by one of the selected cedents to form a contract;

recalculate said cedent capacity of the cedent and said per occurrence capacity of the proposal upon accepting said offer; and

withdraw from availability for submission as an offer any of said proposals whose acceptance would reduce said cedent capacity and said per occurrence capacity, as recalculated, below a selected amount.

27. A system in accordance with claim 26 wherein said server system further configured to transmit a confirmation of acceptance of said offer by the reinsurer to said client system associated with the cedent which submitted said offer.

28. A system in accordance with claim 26 wherein said server system further configured to post said accepted offer such that said accepted offer is viewable via said client system by the cedent which submitted said offer.

29. A system in accordance with claim 26 wherein said proposals comprise an amount of coverage corresponding to a maximum amount of coverage to be provided, and wherein said server system further configured to:

enable the cedents to decrease the amount of coverage of one of said proposals before submission of said proposal as an offer for acceptance by the reinsurer; and

calculate a premium based on the amount of coverage selected by the cedent.