Predictive exposure modeling system and method
First Claim
1. An audit selection method for commercial casualty policies, comprising the steps of:
- determining a probability of under-reported exposure for a given policy using classification modeling;
identifying a source of under-reported exposure using classification modeling; and
selecting an audit protocol effective in uncovering an under-reported exposure based on the probability determined and the source of under-reported exposure identified.
2 Assignments
0 Petitions
Accused Products
Abstract
An audit selection method (10) for commercial casualty policies (such as workers'"'"' compensation, employer'"'"'s liability, and general liability policies) can include the steps of determining (14) a probability of under-reported exposure for a given policy (12) using classification modeling, identifying (24) a source of under-reported exposure using classification modeling, and selecting an audit protocol (28, 30, 32) effective or most effective in uncovering an under-reported exposure based on the probability determined and the source of under-reported exposure identified. Identifying the source of under-reported exposure can be done by identifying at least one among payroll increases, uninsured subcontractors, and misclassified occupations as examples. Determining the probability can be done by classifying the given policy according to a likelihood that an actual exposure for the given policy exceeds an exposure upon which an estimated premium was based requiring an additional premium for the given policy.
70 Citations
20 Claims
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1. An audit selection method for commercial casualty policies, comprising the steps of:
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determining a probability of under-reported exposure for a given policy using classification modeling;
identifying a source of under-reported exposure using classification modeling; and
selecting an audit protocol effective in uncovering an under-reported exposure based on the probability determined and the source of under-reported exposure identified. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13)
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14. A predictive exposure modeling system, comprising:
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a first classification engine that determines a probability of under-reported exposure for a given policy using classification modeling;
a second classification engine associated with the first classification engine that identifies a source of under-reported exposure using classification modeling and selects an audit protocol effective in uncovering an under-reported exposure based on the probability determined and the source of under-reported exposure identified; and
a historical audit database coupled to the second classification engine, wherein the historical audit database contains data useful in identifying the source of under-reported exposure and selecting the audit protocol. - View Dependent Claims (15, 16)
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17. A machine-readable storage, having stored thereon a computer program having a plurality of code sections executable by a machine for causing the machine to perform the steps of:
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determining a probability of under-reported exposure for a given policy using classification modeling;
identifying a source of under-reported exposure using classification modeling; and
selecting an audit protocol effective in uncovering an under-reported exposure based on the probability determined and the source of under-reported exposure identified. - View Dependent Claims (18, 19)
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20. A workers'"'"' compensation insurance policy classification method, comprising the steps of:
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determining a likelihood that an actual exposure relating to at least one among payroll and occupational classes exceeds an exposure estimated for determining a premium for a given worker'"'"'s compensation insurance policy using classification modeling;
identifying a source of under-reported exposure using classification modeling that uses data from a historical audit database; and
selecting an audit protocol effective in uncovering an under-reported exposure based on the likelihood determined and the source of under-reported exposure identified.
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Specification