Method and system for identifying subrogation potential and valuing a subrogation file

• US 8,706,586 B2
• Filed: 08/03/2007
• Issued: 04/22/2014
• Est. Priority Date: 05/26/2000
• Status: Active Grant

• Current Assignee: Hartford Fire Insurance Company (The Hartford Financial Services Group, Inc.)
• Original Assignee: Hartford Fire Insurance Company (The Hartford Financial Services Group, Inc.)
• Inventors: Rojewski, Marcia, Pierce, Don, Aleia, Alan, Jeffrey, David, Rojewski, Lisa, Rojewski, Kim, Pai, Chun-Chen
• Primary Examiner(s): Apple, Kirsten
• Application Number:
  US11/888,931
• Publication Number:
  US 20070288273A1
• Time in Patent Office: 2,454 Days
• Field of Search: 705/35
• US Class Current: 705/35
• CPC Class Codes: G06Q 10/0635 Risk analysis of enterprise or organisation activities
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A method for identifying select ones of insurance records which possess a favorable subrogation potential. The method includes receiving data indicative of a plurality of claims; automatically calculating a base score to identify select ones of the claims which demonstrate at least a given probability of expected subrogation recovery dependently upon the received data; automatically identifying risk factors for each of the select claims; and, automatically scoring each of the select claims dependently upon the base scores and identified risk factors to provide a value indicative of an expected subrogation recovery.

Claims

1. A computer-implemented method for identifying select ones of insurance records which possess a favorable subrogation potential for an insurer, the method comprising:

receiving by a processor data indicative of a plurality of insurance claims as to which the insurer has a right of subrogation, the data including, for each insurance claim, a type of insurance claim, a size of the insurance claim, a type of responsible person, and whether the policy under which the claim is made is a personal or business policy;

calculating by the processor a base score for each of the claims indicative of likelihood of expected subrogation recovery dependently upon the received data, the calculating of the base score employing attributes including;

the type of insurance claim, the insurance claim type values comprising automobile physical damage, automobile collision, and workers compensation, the size range of an underlying insurance claim, and a type of responsible person, the responsible person type values comprising individual or business;

receiving by the processor risk factors for each of the claims, including whether a policy under which each claim was made is a personal or a business insurance policy, degree of insured'"'"'s and tortfeasor'"'"'s culpability for subrogation recovery, reduced collection potential evidenced by failure of other collection agencies to recover, and limitations due to difficulty in identifying and/or locating tortfeasor; and

,

scoring by the processor each of the claims dependently upon the base scores and received risk factors to provide a value indicative of an expected subrogation recovery, the value not representing a sum certain of an obligation to the insurer, and storing the value by the processor in a memory.

2. The method of claim 1, further comprising providing by the processor recovery strategy recommendation and recovery specialist checklists to optimize steps taken to recovery losses at minimum expense.

3. The method of claim 1, wherein the receiving the data comprises:

receiving the data in electronic form.

4. The method of claim 1, wherein the receiving the data comprises:

providing a user interface; and

, extracting the data from the user interface.

5. The method of claim 1, wherein the calculating the base score comprises calculating a likelihood a payment will be made by a responsible party.

6. The method of claim 5, wherein the calculating a base score further comprises calculating a probable percentage of losses recovered through payments received from said responsible party.

7. The method of claim 6, wherein the calculating a base score further comprises:

identifying at least one economic factor pertinent to said base score;

and, calculating a first adjustment dependently upon said identified at least one economic factor.

8. The method of claim 7, wherein the calculating a base score further comprises:

identifying at least one collection efficiency or strategy pertinent to said base score; and

, calculating a second adjustment dependently upon said identified at least one collection efficiency or strategy.

9. The method of claim 8, wherein the calculating a base score further comprises calculating said base score using said calculated likelihood a payment will be made, calculated probable percentage of losses recovered, calculated first adjustment and calculated second adjustment.

10. The method of claim 1, wherein said risk factors are identified using additional data from at least one external database.

11. The method of claim 1, wherein said risk factors address recovery expectations due to time limitations.

12. The method of claim 1, wherein said risk factors address recovery expectations due to recovery limitations based on a degree of fault assessed to said responsible party.

13. The method of claim 1, wherein said risk factors address if other agencies have attempted and failed to recover on the claim, and said agencies are selected to include attorneys, inhouse efforts or outside agents.

14. The method of claim 1, wherein said risk factors address expected difficulties in locating said responsible party.

15. The method of claim 1, wherein said risk factors address issues selected from the group consisting of:

expectations due to time limitations, recovery expectations due to recovery limitations based on a degree of fault assessed to said responsible party, if other agencies have attempted and failed to recover on the claim, and expected difficulties in locating said responsible party.

16. The method of claim 1, further comprising quantifying said value indicative of an expected subrogation recovery at specific periods of time.

17. The method of claim 16, wherein said quantified values factor in expected collection expenses.

18. The method of claim 16, wherein said quantifying at specific periods of time comprises:

calculating a liquidation value for said claim for each specified period of time;

calculating an expected expense value for said claim for each specified period of time; and

, calculating an quantified value for each specified period of time using said calculated liquidation and expected expense values.

19. The method of claim 18, further comprising discounting said quantified values to provide net liquidation values for each specified time period.

20. The method of claim 1, wherein the calculating said base score comprises:

automatically calculating an expected probability a responsible party will make a payment;

automatically calculating an expected probable percentage of losses recovered through payments received from responsible parties; and

, automatically adjusting resultant scores for differences due to economic conditions or operation strategies or efficiencies.

21. A computerized system for identifying select ones of insurance records which possess a favorable subrogation potential, the system comprising:

at least one computing device for receiving data indicative of a plurality of insurance claims as to which an insurer has a right to subrogation; and

, a computer readable medium being accessible to said computing device, said computer readable medium comprising;

a sequence of directions for automatically calculating a base score for the claims indicative of a probability of expected subrogation recovery dependently upon the received data using said at least one computing device, the calculating of the base score employing attributes including a type of underlying insurance claim the insurance claim type values comprising automobile physical damage, automobile collision, and workers compensation, a size of an underlying insurance claim, and a type of responsible party, the responsible person type values comprising individual or business;

a sequence of directions for automatically identifying risk factors, including whether a policy under which each claim was made is a personal or a business insurance policy, degree of insured'"'"'s and tortfeasor'"'"'s culpability for subrogation recovery, reduced collection potential evidenced by failure of other collection agencies to recover, and limitations due to difficulty in identifying and/or locating tortfeasor, for each of the claims using said at least one computing device; and

, a sequence of directions for automatically scoring each of the claims dependently upon the base scores and identified risk factors to provide a value indicative of an expected subrogation recovery, the value not representing a sum certain of an obligation to the insurer, using said at least one computing device.