Method and apparatus for pricing insurance policies

• US 9,984,415 B2
• Filed: 01/06/2010
• Issued: 05/29/2018
• Est. Priority Date: 09/24/2009
• Status: Active Grant

• Current Assignee: Guidewire Software Incorporated
• Original Assignee: Guidewire Software Incorporated
• Inventors: Keefer, Alan Harrison
• Primary Examiner(s): Monfeldt, Sarah M
• Assistant Examiner(s): Gregg, Mary M
• Application Number:
  US12/683,129
• Publication Number:
  US 20110071859A1
• Time in Patent Office: 3,065 Days
• Field of Search: 705 4
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

An insurance policy management computing system (201) stores a legally-binding insurance policy as a read-only document including the complete policy history. To facilitate revisions to the policy, the computing system (201) provides an opportunity (202) to revise an insurance policy and recalls (203) the currently legally-binding insurance policy. Since the legally-binding insurance policy is a read-only document, the computing system (201) uses the legally-binding policy to generate an editable version that is a complete copy of the legally-binding policy. Once the editable version of the insurance policy has been generated, the input revisions can be incorporated into the policy and then, the revised version of the insurance policy is saved as a read-only, now-current version of the insurance policy. The new legally-binding insurance policy has a new creation and effective dates of the various policy elements. To evaluate the insurance policy, the most recently bound legally-binding insurance policy is accessed and that document contains the currently effective policy, as well as the policy history.

Claims

1. An apparatus, the apparatus comprising:

an end-user interface;

a memory having stored therein an insurance policy comprised of a plurality of policy elements having corresponding effective dates and at least some of the plurality of policy elements having a fixed identifier associated therewith, wherein the fixed identifiers are consistent across various stored versions of an insurance policy such that corresponding policy elements have corresponding fixed identifiers;

a processor operably coupled to the end-user interface and the memory, the processor configured to;

receive one or more revisions to be made to a current version of the insurance policy;

recall, from the memory, a current version of the insurance policy;

copy the current version of the insurance policy into an editable version, wherein the copying of the current version of the insurance policy includes copying, to the editable version, a first policy element in the current version, and wherein the first policy element in the current version and a copy of the first policy element in the editable version share a same fixed identifier;

apply a revision to the copy of the first policy element, wherein the same fixed identifier is retained for the first policy element in the current version and for the revised copy of the first policy element in the editable version, and wherein the editable version comprises an updated version of the insurance policy;

generate a policy price based on the updated version of the insurance policy by summing prorated costs for slices of the updated version, wherein a slice comprises a time slice of the updated version of the insurance policy as of a particular slice time, and wherein the slice is determined based at least in part on the corresponding effective dates of the plurality of policy elements;

compare the policy price based on the updated version with a corresponding stored policy price corresponding to the current version of the insurance policy to determine a difference in the insurance policy premium between the current version and the updated version of the insurance policy;

receive a user request to bind the updated version of the insurance policy as a now-current version of the insurance policy;

store the now-current version of the insurance policy;

store the current version of the insurance policy as a now-previous version of the insurance policy, wherein storing the current version as the now-previous version of the insurance policy includes compressing the now-previous version of the insurance policy at least in part by recording differences between the now-previous version of the insurance policy and the now-current version; and

in the event that the now-previous version of the insurance policy is to be retrieved, reconstruct the now-previous version of the insurance policy at least in part by successively applying the recorded differences from the now-current version of the insurance policy.

2. The apparatus of claim 1 wherein generating a policy price comprises creating slices of the insurance policy that are defined by at least one of start effective dates and end effective dates of the policy elements, wherein each such slice has at least one cost corresponding to policy elements of that slice, wherein the costs are prorated according to the effective dates of the slice and then the prorated costs are aggregated to generate the policy price.

3. The apparatus of claim 2 wherein costs having identical rates for adjacent slices are combined to yield a combined cost and then the combined costs are prorated based on a portion of a policy term that the adjacent slices cover.

4. The apparatus of claim 1 wherein determining a difference in the insurance policy premium between the current version and the updated version further includes comparing the policy price based on the updated version with a total sum of all prior financial transactions generated for a time period by previous versions of the insurance policy.

5. The apparatus of claim 1 wherein the processor is further configured to obtain separate cost entities associated with one or more versions of the insurance policy, and wherein the separate cost entities have a start effective date and an end effective date.

6. The apparatus of claim 5 wherein comparing the policy price based on the updated version of the insurance policy with a stored policy price comprises comparing separate cost entities for the updated version with separate cost entities for the current version.

7. The apparatus of claim 6 wherein comparing the policy price based on the updated version of the insurance policy with a stored policy price of the current version of the insurance policy further comprises locating cost entities that correspond to identical policy elements by examining a fixed identifier for each of the cost entities.

8. The apparatus of claim 7 wherein the processor is further configured to produce offsetting and onsetting transactions when the cost entities for the updated version and the current version of the policy differ.

9. The apparatus of claim 8 wherein when the processor determines that a cost entity is present only in the current version of the policy, only offsetting transactions are generated as pertain to that circumstance.

10. The apparatus of claim 8 wherein when a processor determines that a cost entity is only present in the updated version of the policy, only onsetting transactions are generated as pertain to that circumstance.

11. The apparatus of claim 8 wherein for periods of effective time where the cost entities match exactly, no offsetting and no onsetting transactions are generated.

12. The apparatus of claim 5 wherein the start effective date and the end effective date of the separate cost entities may differ from the corresponding effective dates of the plurality of policy elements.

13. The apparatus of claim 5 wherein at least one of the separate cost entities corresponds to a price as applies to an element for the slice.

14. The apparatus of claim 5 wherein at least one of the separate cost entities corresponds to a price as applies to the policy as a whole without being directly related to a particular policy element.

15. The apparatus of claim 14 wherein a price comprises at least one of:

a policy fee; and

a policy discount.

16. The apparatus of claim 5 wherein the separate cost entities that are adjacent to one another in effective time and have identical values are merged into a combined cost entity that spans for a combined effective time.

17. The apparatus of claim 1 wherein the current version of the insurance policy is recalled from the memory in its entirety.

18. The apparatus of claim 1 wherein the now-current version of the insurance policy is stored in its entirety.

19. The apparatus of claim 1 wherein the now-current version of the insurance policy is retrievable without reconstruction.

20. The apparatus of claim 1 wherein the now-current version of the insurance policy is associated with a model number that is immediately subsequent to a model number associated with the now-previous version of the insurance policy, and wherein a given prior version of the insurance policy is stored at least in part by recording differences between the given prior version and an immediately subsequent version by model number.