System, program product and method for segmenting and underwriting using voting status

• US 8,060,385 B1
• Filed: 12/07/2007
• Issued: 11/15/2011
• Est. Priority Date: 12/08/2006
• Status: Active Grant

• Current Assignee: Safeco Insurance Company of America (Liberty Mutual Holding Company)
• Original Assignee: Safeco Insurance Company of America (Liberty Mutual Holding Company)
• Inventors: Strannigan, Gary, Dye, Tammy
• Primary Examiner(s): Havan; Thu Thao
• Application Number:
  US11/952,474
• Time in Patent Office: 1,439 Days
• Field of Search: 705/4, 705/35
• US Class Current: 705/4
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A system, method and computer program product for utilizing a person'"'"'s voting status as a factor in segmenting a population, and in various aspects of selling, underwriting, or rating insurance. Voting status may include voter registration, eligibility for voter registration, an instance of recent voting, voting frequency, or other voting history in elections. In defining voting status, an instance of recent voting, voting frequency, or other voting history may optionally take into account the type of election or the turnout for the election, or both. Voting status may be used together with other factors such as age, gender, driving distance to place of employment, or residence location. A risk model for insurance purposes is provided, including segmentation of a population into groups based factors including voting status; and determining risk parameters of each group. A rate structure corresponding to the segmented groups may be calculated, and insurance coverage limits and a premium proposed to a customer based on a group assignment. Persons to receive insurance sales solicitations may be identified based on voting status.

Claims

1. A computing system for segmenting a population for insurance underwriting, comprising:

a data storage device;

a voting status generator module programmed to obtain information providing voting status of members of a population;

a predictive modeling module programmed to segment the population into groups based at least in part on voting status information stored in the data storage device, and to calculate insurance underwriting risk parameters of each group, the risk parameters including at least one of predicted insurance claim frequency or insurance claim severity; and

an input/output system to transfer incoming voting status information obtained by the voting status generator module to the data storage device and to output information relating to the groups and their respective insurance underwriting risk parameters.

2. The system of claim 1, wherein voting status information includes the number of times an individual voted in a predetermined number of recent elections.

3. The system of claim 2, wherein calculating insurance underwriting risk parameters includes weighing an individual'"'"'s voting status based on one of:

election type, election turnout, or election type and turnout.

4. The system of claim 1, wherein the predictive modeling module is programmed to segment the population into groups based additionally on one or more of age, gender, driving distance to place of employment, or location.

5. The system of claim 1, wherein the predictive modeling module is programmed to segment the population into groups based on data stored in the data storage device received from one or more internal data sources of an insurance provider and one or more external data sources.

6. The system of claim 5, wherein the one or more external data sources includes a commercial vendor source for a voter file.

7. The system of claim 6, wherein the one or more external data sources includes a governmental source for a voter file.

8. The system of claim 1, wherein voting status includes one or more of voter registration, eligibility for voter registration, an instance of recent voting, or voting frequency.

9. A computerized method for constructing a segmentation-based model for insurance underwriting expressed in the form of actuarial rules, comprising:

presenting to a computer information providing voting status of members of a population;

based at least in part on the voting status information, on the computer, generating a segmentation-based risk model by segmenting the population into groups and calculating insurance underwriting risk parameters of each group, the insurance underwriting risk parameters including at least one of predicted insurance claim frequency or insurance claim severity; and

outputting from the computer actuarial rules of the risk model.

10. The method of claim 9, wherein the actuarial rules define a risk group and its level of risk.

11. The method of claim 9, wherein segmenting the population into groups is based additionally on one or more of age, gender, driving distance to place of employment, or location.

12. The method of claim 9, wherein segmenting the population into groups is based on data stored in the data storage device received from one or more internal data sources of an insurance provider and one or more external data sources.

13. The method of claim 12, wherein the one or more external data sources includes a commercial vendor source for a voter file.

14. The method system of claim 12, wherein the one or more external data sources includes a governmental source for a voter file.

15. The method of claim 9, wherein voting status includes one or more of voter registration, eligibility for voter registration, an instance of recent voting, or voting frequency.

16. A computerized method for underwriting and rating an insurance policy based on a segmentation-based risk model, comprising:

receiving on a modeling computer module information providing voting status of members of a population;

on the modeling computer module, based at least in part on the voting status information, generating a segmentation-based risk model by segmenting the population into groups and calculating insurance underwriting risk parameters of each group;

receiving, on an insurance underwriting computer module, the risk model and voting status information characterizing an applicant for insurance;

determining, on the insurance underwriting computer module, based at least in part on the voting status information characterizing the applicant, into which segmented group the applicant falls; and

determining, on the insurance underwriting computer module, based on the group into which the applicant falls, whether to offer an insurance policy to the applicant.

17. The method of claim 16, wherein the insurance underwriting computer module receives the applicant'"'"'s voting status information from a data source.

18. The method of claim 16, wherein the insurance underwriting computer module receives the applicant'"'"'s voting status information from a voting status generator computer module, the voting status generator computer module providing interactive interview questions to the applicant via a computer network, and receiving responses from the applicant via the network.

19. The method of claim 16, further comprising determining, on the insurance underwriting computer module, a rate structure corresponding to the segmented groups, and proposing insurance coverage limits and a premium to the applicant based on the group into which the applicant falls.

20. The method of claim 19, wherein proposing coverage limits and a premium comprise sending coverage limits and a premium to the applicant via the Internet.

21. The method of claim 16, wherein the risk parameters include at least one of predicted claim frequency or claim severity.

22. The method of claim 16, wherein voting status includes one or more of voter registration, eligibility for voter registration, an instance of recent voting, or voting frequency.

23. A method for identifying persons to receive insurance sales solicitations, comprising:

on an insurance underwriting computer module, based on voting status information stored in a data storage module, generating a list of persons whose voting status comprises at least one of voter registration, eligibility for voter registration, an instance of recent voting, or voting frequency;

outputting said list of persons; and

directing a sales solicitation to one or more persons on said list.

24. The method of claim 23, wherein directing a sales solicitation comprises sending the solicitation via a computer network.

25. A computer program product, comprising a non-volatile computer readable medium having recorded thereon computer executable instructions for:

receiving information providing voting status of members of a population;

based at least in part on the voting status information, generating a segmentation-based risk model by segmenting the population into groups and calculating insurance underwriting risk parameters of each group;

receiving voting status information characterizing an applicant for insurance;

determining, based at least in part on the voting status information characterizing the applicant, into which segmented group the applicant falls; and

determining, based on the group into which the applicant falls, whether to offer an insurance policy to the applicant.