System for case-based insurance underwriting suitable for use by an automated system

• US 7,630,910 B2
• Filed: 06/14/2002
• Issued: 12/08/2009
• Est. Priority Date: 12/31/2001
• Status: Active Grant

• Current Assignee: Pacific Life Insurance Company (Pacific Mutual Holding Company)
• Original Assignee: Genworth Financial Incorporated
• Inventors: Pavese, Marc, Bonissone, Piero Patrone, Yang, Dan, Subbu, Rajesh Venkat, Patterson, Angela Neff, Messmer, Richard Paul, Varma, Anil, Mogro-Campero, Antonio, Durham, William Michael, Russell, Diane Marie
• Primary Examiner(s): O'Connor; Gerald J.
• Assistant Examiner(s): Koppikar; Vivek D
• Application Number:
  US10/170,471
• Publication Number:
  US 20030187696A1
• Time in Patent Office: 2,734 Days
• Field of Search: 705 2- 4, 600300-301
• US Class Current: 705/4
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A system for at least a partial underwriting of insurance policies is described. based on the similarity to previous insurance applications, a decision on the current request for underwriting may be made. this decision-making process represents an analogical approach to the placement of an insurance application to an underwriting category, whereby a given insurance application request is compared to previous requests.

Claims

1. A system tangibly embodied on a computer readable medium for underwriting a pending insurance application based on a comparison with a plurality of previous insurance application underwriting decisions so as to assign a rate classification to the pending insurance application, the system comprising:

a receiver that receives a request to underwrite the pending insurance application, where the request includes information about at least one application component of the pending insurance application;

a retrieval module that retrieves a plurality of relevant insurance applications from the plurality of previous insurance application underwriting decisions based on a similarity between the at least one application component and at least one corresponding application component in the retrieved relevant insurance application;

a ranking module that ranks, by assigning a rank value to, the plurality of retrieved insurance applications according to a level of similarity between the at least one application component and at least one corresponding application component in the retrieved insurance applications, and

the ranking module deriving a distribution of the plurality of retrieved insurance applications based on predetermined criteria; and

an assignment module that assigns the rate classification to the pending insurance application based on an aggregation of the rank values assigned to the plurality of retrieved insurance applications and the distribution of the plurality of retrieved insurance applications; and

the assignment module outputting the rate classification.

2. The system according to claim 1, further comprising a transmitter for transmitting the output rate classification.

3. The system according to claim 1, wherein the retrieval module employs at least one fuzzy logic rule to retrieve the plurality of previous insurance application underwriting decisions.

4. The system according to claim 3, wherein the at least one fuzzy logic rule is a membership function that interprets the degree to which a value is around a specified parameter.

5. The system according to claim 3, wherein the at least one fuzzy logic rule is a membership function that interprets the degree to which a value is within a core of a specified parameter.

6. The system according to claim 1, wherein the predetermined criteria is rate class.

7. A system tangibly embodied on a computer readable medium for rating an insurance application, where the application includes a plurality of components, the system comprising:

a determination module that determines a value for each of the plurality of components of the insurance application;

a creation module that creates a query based on the value of each component;

a retrieval module that retrieves a plurality of cases from a database; and

an assignment module that assigns the insurance application a rate classification based on the plurality of retrieved cases, the cases being insurance application cases, the assignment module;

assigning a similarity value, using fuzzy logic, for each component, based on a similarity of a component of the insurance application as compared to a corresponding component of a one of the plurality of retrieved cases;

adding the similarity values for the one of the plurality of retrieved cases to generate an aggregate similarity value for the one of the plurality of retrieved cases;

performing a determination that the aggregate similarity value satisfies a threshold value;

assigning a rank value to the one of the plurality of retrieved cases based on the aggregate similarity value for the one of the plurality of retrieved cases, and the assigning a rank value is performed for each retrieved case; and

a generator module for generating a distribution of the plurality of cases based on a rate class assigned each of the cases; and

the assignment module;

assigning the insurance application to a rate classification based on the distribution and the respective rank value assigned to each retrieved case; and

outputting the assigned rate classification.

8. The system according to claim 7, where the retrieved cases are stored in a case database, and further comprising a storage module for storing the application in the case database once the rate classification has been assigned.

9. The system of claim 7, the assigning the insurance application to a rate classification based on the distribution and the respective rank value assigned to each retrieved case is performed using an aggregation of the rate classification based on the distribution and the respective rank value assigned to each retrieved case.

10. The system according to claim 7, wherein the at least one fuzzy logic rule is a membership function that interprets the degree to which a value is around a specified parameter.

11. The system according to claim 7, wherein the at least one fuzzy logic rule is a membership function that interprets the degree to which a value is within a core of a specified parameter.