Reinsurance risk management

• US 8,468,037 B1
• Filed: 03/28/2012
• Issued: 06/18/2013
• Est. Priority Date: 03/28/2012
• Status: Active Grant

• Current Assignee: Guidewire Software Incorporated
• Original Assignee: Guidewire Software Incorporated
• Inventors: Clarke, Geoffrey, Branson, Kenneth William, Vu, Minh
• Primary Examiner(s): Patel, Jagdish
• Application Number:
  US13/432,788
• Time in Patent Office: 447 Days
• Field of Search: 704/4
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

Managing risks associated with reinsurance includes: obtaining a plurality of insurance policies, each of the plurality of insurance policies comprising a plurality of coverages; identifying, for each insurance policy in the plurality of insurance policies, a set of coverages that corresponds to a geographical location, a policy level liability, or a covered item; and evaluating, for each identified set of coverages, a corresponding reinsurable risk, the evaluation includes determining a total insured value associated with the corresponding reinsurable risk.

Claims

1. A system for managing risks associated with reinsurance, comprising:

one or more processors configured to;

obtain a plurality of insurance policies, each of the plurality of insurance policies comprising a plurality of coverages;

identify, for each insurance policy in the plurality of insurance policies, a set of coverages that corresponds to a geographical location, a policy level liability, or a covered item; and

evaluate, for each identified set of coverages, a corresponding reinsurable risk, the evaluation includes determining a total insured value associated with the corresponding reinsurable risk; and

one or more memories coupled to the one or more processors, configured to provide the one or more processors with instructions.

2. The system of claim 1, wherein the one or more processors are further configured to identify, for each reinsurable risk, a corresponding reinsurance program that covers the reinsurable risk.

3. The system of claim 2, wherein the one or more processors are further configured to determine whether the total insured value of each reinsurable risk is adequately covered by the corresponding reinsurance program.

4. The system of claim 3, wherein in the event that the total insured value of each reinsurable risk is not adequately covered by the corresponding reinsurance program, the one or more processors are further configured to send a notification.

5. The system of claim 3, wherein in the event that the total insured value of each reinsurable risk is not adequately covered by the corresponding reinsurance program, the one or more processors are further configured to put an insurance policy related action on hold.

6. The system of claim 3, wherein in the event that the total insured value of each reinsurable risk is not adequately covered by the corresponding reinsurance program, the one or more processors are further configured to allow an appropriate action to be taken in response.

7. The system of claim 1, wherein the one or more processors are further configured to:

identify a plurality of the reinsurable risks that is potentially subject to a single loss event; and

determine a combined total insured value for the identified plurality of reinsurable risks.

8. The system of claim 7, wherein the plurality of reinsurable risks that is potentially subject to a single loss event is identified based on one or more of:

effective date, location proximity, shared common risk factor, reinsurance coverage group, and line of business.

9. The system of claim 7, wherein the one or more processors are further configured to determine whether the combined total insured value is adequately covered by a corresponding reinsurance program.

10. The system of claim 9, wherein in the event that the combined total insured value is not adequately covered by the corresponding reinsurance program, the one or more processors are further configured to perform one or more of:

sending a notification, putting an insurance policy related action on hold, and allowing an appropriate action to be taken in response.

11. The system of claim 1, wherein the total insured value corresponds to a probable maximum loss.

12. A method for managing risks associated with reinsurance, comprising:

obtaining a plurality of insurance policies, each of the plurality of insurance policies comprising a plurality of coverages;

identifying, for each insurance policy in the plurality of insurance policies, a set of coverages that corresponds to a geographical location, a policy level liability, or a covered item; and

evaluating, using one or more computer processors, for each identified set of coverages, a corresponding reinsurable risk, the evaluation includes determining a total insured value associated with the corresponding reinsurable risk.

13. The method of claim 12, further comprising identifying, for each reinsurable risk, a corresponding reinsurance program that covers the reinsurable risk.

14. The method of claim 13, further comprising determining whether the total insured value of each reinsurable risk is adequately covered by the corresponding reinsurance program.

15. The method of claim 14, wherein in the event that the total insured value of each reinsurable risk is not adequately covered by the corresponding reinsurance program, the method further comprises sending a notification.

16. The method of claim 14, wherein in the event that the total insured value of each reinsurable risk is not adequately covered by the corresponding reinsurance program, the method further comprises putting an insurance policy related action on hold.

17. The method of claim 14, wherein in the event that the total insured value of each reinsurable risk is not adequately covered by the corresponding reinsurance program, the method further comprises allowing an appropriate action to be taken in response.

18. The method of claim 12, further comprising:

identifying a plurality of the reinsurable risks that is potentially subject to a single loss event; and

determining a combined total insured value for the identified plurality of reinsurable risks.

19. The method of claim 18, wherein the plurality of reinsurable risks that is potentially subject to a single loss event is identified based on one or more of:

effective date, location proximity, shared common risk factor, reinsurance coverage group, and line of business.

20. The method of claim 18, further comprising determining whether the combined total insured value is adequately covered by a corresponding reinsurance program.

21. The method of claim 20, wherein in the event that the combined total insured value is not adequately covered by the corresponding reinsurance program, the method further comprises performing one or more of:

sending a notification, putting an insurance policy related action on hold, and allowing an appropriate action to be taken in response.

22. The method of claim 12, wherein the total insured value corresponds to a probable maximum loss.

23. A computer program product for managing risks associated with reinsurance, the computer program product being embodied in a tangible computer readable storage medium and comprising computer instructions for:

obtaining a plurality of insurance policies, each of the plurality of insurance policies comprising a plurality of coverages;

identifying, for each insurance policy in the plurality of insurance policies, a set of coverages that corresponds to a geographical location, a policy level liability, or a covered item; and

evaluating, for each identified set of coverages, a corresponding reinsurable risk, the evaluation includes determining a total insured value associated with the corresponding reinsurable risk.

24. The computer program product of claim 23, further comprising computer instructions for:

identifying, for each reinsurable risk, a corresponding reinsurance program that covers the reinsurable risk.

25. The computer program product of claim 23, further comprising computer instructions for:

identifying a plurality of the reinsurable risks that is potentially subject to a single loss event; and

determining a combined total insured value for the identified plurality of reinsurable risks.

26. The computer program product of claim 23, wherein the total insured value corresponds to a probable maximum loss.