Randomized competitive insurance pricing system and method

• US 7,483,840 B2
• Filed: 08/23/2002
• Issued: 01/27/2009
• Est. Priority Date: 08/23/2002
• Status: Active Grant

• Current Assignee: Atera /Solutions LLC
• Original Assignee: Atera /Solutions LLC
• Inventors: Weitermann, Michael Frederick, Mrochinski, Lisa Marie
• Primary Examiner(s): Gilligan; C Luke
• Assistant Examiner(s): RANGREJ, SHEETAL
• Application Number:
  US10/227,102
• Publication Number:
  US 20040039610A1
• Time in Patent Office: 2,349 Days
• Field of Search: 705 2- 4
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A system and method of generating insurance risk samples and for comparing hypothetical and real insurance premiums of different insurance companies is disclosed. In some embodiments, one or more rating factors are defined and have a plurality of possible values at least partially defining an insurance risk. By generating random numbers that are used to select the values of these parameters, a user can generate sample risks, calculate sample premiums for the risks, and/or compare sample premiums for different types of insurance policies.

Claims

1. A computer-implemented method of comparing insurance premiums of at least two insurance companies, comprising:

providing a plurality of rating factors, each of the rating factors at least partially defining a risk, each of the rating factors having at least two possible values;

generating at least one random number via a processor;

repetitively generating at least one of the possible rating factor values for each of the plurality of rating factors based on at least one random number generated by the processor;

generating a plurality of entities representing parties to be insured, each of the entities defined at least in part by the generated rating factor values, and is independent from another one of the entities;

retrieving premium calculation data of a first insurance provider from a memory coupled to the processor;

calculating a premium of the first insurance provider, the premium of the first insurance provider at least partially based upon the premium calculation data of the first insurance provider and the generated plurality of entities;

retrieving premium calculation data of a second insurance provider from a memory coupled to the processor; and

calculating a premium of the second insurance provider, the premium of the second insurance provider at least partially based upon the premium calculation data of the second insurance provider and the same generated plurality of entities used to calculate the premium of the first insurance provider.

2. The method of claim 1, further comprising displaying the premiums upon a display.

3. The method of claim 1, further comprising:

changing the rating factor;

generating at least one second random number via the processor;

repetitively generating at least one of the possible rating factor values for each of the plurality of rating factors based on the at least one second random number generated by the processor;

generating a second plurality of entities representing parties to be insured, each of the second entities defined at least in part by the rating factor values generated based on the at least one second random number, and is independent from another one of the second plurality of entities;

calculating a second premium of the first insurance provider, the second premium of the first insurance provider at least partially based upon the premium calculation data of the first insurance provider and the generated second plurality of entities corresponding to the second random number; and

calculating a second premium of the second insurance provider, the second premium of the second insurance provider at least partially based upon the premium calculation data of the second insurance provider and the same generated second plurality of entities corresponding to the second random number.

4. The method of claim 1, further comprising:

receiving from a user a probability for the generated plurality of entities at a user interface screen; and

assigning the probability to the generated plurality of entities.

5. The method of claim 1, further comprising:

receiving from a user a number of risks to run input into a user interface screen; and

repeating the generating a random number, generating at least one of the possible rating factor, and calculating acts for each risk in the number of risk input by the user.

6. The method of claim 5, further comprising:

calculating at least one of an average and a sum of the premiums for the first insurance provider; and

calculating at least one of an average and a sum of the premiums for the second insurance provider.

7. The method of claim 1, further comprising receiving from a user policy data input into a user interface screen;

the premiums of the first and second insurance providers at least partially based upon the policy data.

8. The method of claim 1, wherein the rating factor is data corresponding to at least one of a vehicle and a driver.

9. The method of claim 1 further comprising ranking the premiums according to insurance provider.