U.S. patent application number 14/143705 was filed with the patent office on 2014-04-24 for system and method for providing insurance coverage recommendations.
This patent application is currently assigned to HARTFORD FIRE INSURANCE COMPANY. The applicant listed for this patent is Hartford Fire Insurance Company. Invention is credited to Julia M. Feldman, Matthew J. Pietrusewicz, Sankar Virdhagriswaran.
Application Number | 20140114698 14/143705 |
Document ID | / |
Family ID | 42992920 |
Filed Date | 2014-04-24 |
United States Patent
Application |
20140114698 |
Kind Code |
A1 |
Virdhagriswaran; Sankar ; et
al. |
April 24, 2014 |
SYSTEM AND METHOD FOR PROVIDING INSURANCE COVERAGE
RECOMMENDATIONS
Abstract
A computer system includes a data storage device. The data
storage module receives, stores, and provides access to historical
entity data and insurance coverage package data. A recommendation
engine comprising program instructions stored in a program memory
receives current entity data, creates a current entity
representative record based on the received current entity data and
historical entity data, creates one or more historical entity
representative records for each of a plurality of insurance
coverage packages, identifies one of the historical entity
representative records based on the current entity representative
record, identifies one or more of the plurality of insurance
coverage packages based on the identified historical entity
representative record, and presents the identified one or more
insurance coverage packages when executed by a computer processor.
A payment device processes a payment associated with one of the
identified one or more insurance coverage packages to establish an
insurance contract with the current entity based on the one of the
identified one or more insurance coverage packages.
Inventors: |
Virdhagriswaran; Sankar;
(Boxborough, MA) ; Feldman; Julia M.; (West
Hartford, CT) ; Pietrusewicz; Matthew J.;
(Southington, CT) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
Hartford Fire Insurance Company |
Hartford |
CT |
US |
|
|
Assignee: |
HARTFORD FIRE INSURANCE
COMPANY
Hartford
CT
|
Family ID: |
42992920 |
Appl. No.: |
14/143705 |
Filed: |
December 30, 2013 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
|
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12470162 |
May 21, 2009 |
8635090 |
|
|
14143705 |
|
|
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|
61173249 |
Apr 28, 2009 |
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Current U.S.
Class: |
705/4 |
Current CPC
Class: |
G06Q 30/0631 20130101;
G06Q 30/06 20130101; G06Q 40/08 20130101; G06Q 10/10 20130101 |
Class at
Publication: |
705/4 |
International
Class: |
G06Q 40/08 20120101
G06Q040/08; G06Q 30/06 20060101 G06Q030/06 |
Claims
1. A computer system for providing a recommendation of at least one
insurance coverage package covering an entity from among a
plurality of insurance coverage packages, the system comprising:
one or more data storage devices storing presented packages of
insurance coverages; one or more computer processors in
communication with the one or more data storage devices; a memory
in communication with the one or more computer processors and
storing program instructions, the one or more computer processors
operative with the program instructions to: receive a selection of
one of the presented packages of insurance coverages; determine
additional coverage configurations based on the selected presented
package of insurance coverages, wherein the selected presented
package of insurance coverages and the additional coverage
configurations together comprise determined coverage
configurations; provide data for a display for presentation
including the determined coverage configurations, the display being
configured to a modification of at least one term of a selected one
of the determined coverage configurations or a selection to receive
a quotation for one of the determined coverage configurations;
determine, responsive to a receipt of an indication of modification
of at least one term of one of the determined coverage
configurations, one or more other insurance coverage packages and
provide data for a display for presentation the one or more other
insurance coverage packages, the display being further configured
to allow a selection to receive a quotation for a selected one of
the one or more other insurance coverage packages; and responsive
to a receipt of a selection to receive a quotation for a selected
one of the determined coverage confirmations or a selected one of
the one or more other insurance coverage packages: generate a
quotation for the selected one of the determined coverage
configurations or the selected one of the one or more other
insurance coverage packages; and provide data for a display for
presentation including the quotation for the selected one of the
determined coverage confirmations or the selected one of the one or
more other insurance coverage packages.
2. The system of claim 1, wherein the one or more data storage
devices further store insurance coverage configuration rules and
wherein the one or more computer processors being operative with
the program instructions to determine the additional coverage
configurations based on the selected presented package of insurance
coverages comprises the one or more computer processors being
operative with the program instructions to determine the additional
coverage configurations based on the insurance coverage
configuration rules.
3. The system of claim 2, wherein the insurance coverage
configuration rules are operative with the one or more computer
processors and the program instructions to: determine whether the
selected presented package of insurance coverages includes stretch
packages; determine, responsive to a determination that the
selected presented package of insurance coverages does not include
stretch packages, one or more stretch packages based on the
selected presented package of insurance coverages, wherein the one
or more stretch packages comprise additional coverage
configurations that provide for one or both of additional coverage
and coverage limits over the selected presented package of
insurance coverages; and determine, responsive to a determination
that the selected presented package of insurance coverages includes
stretch packages, one or both of umbrella coverage packages and
additional line of business coverage packages for the selected
presented package of insurance coverages, wherein the umbrella
coverage packages comprise additional coverage configurations that
provide for one or both of coverage in addition to or in excess of
coverage limits of the selected presented package of insurance
coverages and the additional line of business coverage packages
comprise additional coverage configurations that provide a
different type of coverage than provided by the selected presented
package of insurance coverages.
4. The system of claim 3, wherein the insurance coverage
configuration rules being operative with the one or more computer
processors and the program instructions to determine the one or
more stretch packages based on the selected presented package of
insurance coverages comprises the insurance coverage configuration
rules being operative with the one or more computer processors and
the program instructions to: determine a stretch package that
provides for additional coverage and coverage limits over the
selected presented package of insurance coverages, based on a
classification code of a matching representative historical
insurance purchase record associated with the selected presented
package of insurance coverages; and determine a super-stretch
package that provides for additional coverage and coverage limits
over the stretch package, based on the classification code of the
matching representative historical insurance purchase record
associated with the selected presented package of insurance
coverages; wherein the stretch package and the super-stretch
package comprise the additional coverage configurations.
5. The system of claim 2, wherein the insurance coverage
configuration rules are operative with the one or more computer
processors and the program instructions to: determine whether the
selected presented package of insurance coverages includes stretch
packages, umbrella coverage packages, and additional line of
business coverage packages; and determine, responsive to a
determination that the selected presented package of insurance
coverages includes stretch packages, umbrella coverage, and
additional line of business coverage packages, additional coverage
configurations including coverage packages with one or both of
different coverage limits or different deductibles than the
selected presented package of insurance coverages.
6. The system of claim 1, wherein the one or more data storage
devices further store historical insurance coverage package data
and wherein the one or more processors being operative with the
program instructions to determine the one or more other insurance
coverage packages based on the selected presented package of
insurance coverages comprises the one or more processors being
operative with the program instructions to determine the one or
more other insurance coverage packages based on a market basket
analysis of the selected presented package of insurance coverages
and the historical insurance coverage package data.
7. The system of claim 6, wherein the market basket analysis
determines the additional coverage configurations based on a
confidence factor, a level of support factor, a lift factor, and an
expected confidence factor between the selected presented package
of insurance coverages and historical insurance coverage
packages.
8. A computer-implemented method for providing a recommendation of
at least one insurance coverage package covering an entity from
among a plurality of insurance coverage packages, the method
comprising: receiving, by one or more computer processors, entity
data; receiving, storing, and providing access to one or more data
storage devices storing presented packages of insurance coverages;
receiving, by the one or more computer processors, a selection of
one of the presented packages of insurance coverages; determining,
by the one or more computer processors, additional coverage
configurations based on the selected presented package of insurance
coverages, wherein the selected presented package of insurance
coverages and the additional coverage configurations together
comprise determined coverage configurations; providing, by the one
or more computer processors, data for a display for presentation
including the determined coverage configurations, the display being
configured to allow a modification of at least one term of one of
the determined coverage configurations, select one of the
determined coverage configurations, or select to receive a
quotation for a selected one of the determined coverage
configurations; provide, by the one or more computer processors and
responsive to a receipt of an indication of modification of at
least one term of one of the determined coverage configurations,
data for a display for presentation the one or more other insurance
coverage packages, the display being further configured to allow a
modification of at least one term of one of the one or more other
coverage packages, select one of the one or more other insurance
coverage packages, or select to receive a quotation for a selected
one of the one or more other insurance coverage packages;
responsive to a receipt, by the one or more computer processors, of
a selection to receive a quotation for a selected one of the
determined coverage confirmations or a selected one of the one or
more other insurance coverage packages: generating, by the one or
more computer processors, a quotation for the selected one of the
determined coverage confirmations or the selected one of the one or
more other insurance coverage packages; and providing, by the one
or more computer processors, data for a display for presentation
including the quotation for the selected one of the determined
coverage confirmations or the selected one of the one or more other
insurance coverage packages.
9. The method of claim 8, further comprising receiving, storing,
and providing access to, by the one or more data storage devices,
insurance coverage configuration rules and wherein determining
additional coverage configurations based on the selected presented
package of insurance coverages comprises determining the additional
coverage configurations based on the insurance coverage
configuration rules.
10. The method of claim 9, wherein determining the additional
coverage configurations based on the insurance coverage
configuration rules comprises: determining, by the one or more
computer processors, whether the selected presented package of
insurance coverages includes stretch packages; determining, by the
one or more computer processors and responsive to a determination
that the selected presented package of insurance coverages does not
include stretch packages, one or more stretch packages based on the
selected presented package of insurance coverages, wherein the one
or more stretch packages comprise additional coverage
configurations that provide for one or both of additional coverage
and coverage limits over the selected presented package of
insurance coverages; and determining, by the one or more computer
processors and responsive to a determination that the selected
presented package of insurance coverages includes stretch packages,
one or both of umbrella coverage packages and additional line of
business coverage packages for the selected presented package of
insurance coverages, wherein the umbrella coverage packages
comprise additional coverage configurations that provide for one or
both of coverage in addition to or in excess of the coverage limits
of the selected presented package of insurance coverages and the
additional line of business coverage packages comprise additional
coverage configurations that provide a different type of coverage
than provided by the selected presented package of insurance
coverages.
11. The method of claim 10, wherein determining one or more stretch
packages based on the selected presented package of insurance
coverages comprises: determining a stretch package that provides
for additional coverage and coverage limits over the selected
presented package of insurance coverages, based on a classification
code of a matching representative historical insurance purchase
record associated with the selected presented package of insurance
coverages; and determining a super-stretch package that provides
for additional coverage and coverage limits over the stretch
package, based on the classification code of the matching
representative historical insurance purchase record associated with
the selected presented package of insurance coverages; wherein the
stretch package and the super-stretch package comprise the
additional coverage configurations.
12. The method of claim 9, wherein determining the additional
coverage configurations based on the insurance coverage
configuration rules comprises: determining, by the one or more
computer processors, whether the selected presented package of
insurance coverages includes stretch packages, umbrella coverage
packages, and additional line of business coverage packages; and
determining, by the one or more computer processors and responsive
to a determination that the selected presented package of insurance
coverages includes stretch packages, umbrella coverage, and
additional line of business coverage packages, additional coverage
configurations including coverage packages with one or both of
different coverage limits or different deductibles than the
selected presented package of insurance coverages.
13. The method of claim 8, further comprising receiving, storing,
and providing access to, by the one or more data storage devices,
historical insurance coverage package data; and wherein determining
the one or more other insurance coverage packages based on the
selected presented package of insurance coverages comprises
determining the one or more other insurance coverage packages based
on a market basket analysis of the selected presented package of
insurance coverages and the historical insurance coverage package
data.
14. The method of claim 13, wherein determining the additional
coverage configurations based on the market basket analysis
comprises determining the additional coverage configurations based
on a confidence factor, a level of support factor, a lift factor,
and an expected confidence factor between the selected presented
package of insurance coverages and historical insurance coverage
packages.
15. A computer system for providing a recommendation of at least
one insurance coverage package covering an entity from among a
plurality of insurance coverage packages, the system comprising:
one or more data storage devices storing presented packages of
insurance coverages; one or more computer processors in
communication with the one or more data storage devices; a memory
in communication with the one or more computer processors and
storing program instructions, the one or more computer processors
operative with the program instructions to: receive a selection of
one of the presented packages of insurance coverages; determine
whether the selected presented package of insurance coverages
includes stretch packages, umbrella coverage packages, and line of
business coverage packages; responsive to a determination that the
selected presented package of insurance coverages does not include
the stretch packages, the umbrella coverage packages, and the line
of business coverage packages, determine the one or more of the
stretch packages, the umbrella coverage packages, and line of
business coverage packages not included in the selected presented
package of insurance coverages, wherein the selected presented
package of insurance coverages, the stretch packages, the umbrella
coverage packages, and the line of business coverage packages
comprise determined coverage configurations; providing data for a
display for presentation including the determined coverage
configurations, the display being configured to allow a selection
to receive a quotation for one of the determined coverage
configurations; responsive to a receipt of a selection to receive a
quotation for a selected one of the determined coverage
confirmations: generate a quotation for the selected one of the
determined coverage confirmations or the selected one of the one or
more other insurance coverage packages; and providing data for a
display for presentation including the quotation for the selected
one of the determined coverage confirmations or the selected one of
the one or more other insurance coverage packages.
16. The system of claim 15, wherein the one or more computer
processors are further operative with the program instructions to
process a payment received by a payment device associated with the
selected one of the determined coverage configurations, wherein
processing the payment establishes an insurance contract with the
entity.
17. The system of claim 15, wherein the one or more computer
processors being operative with the program instructions to
determine the one or more stretch packages based on the selected
presented package of insurance coverages comprises the one or more
computer processors being operative with the program instructions
to: determine a stretch package that provides for additional
coverage and coverage limits over the selected presented package of
insurance coverages, based on a classification code of a matching
representative historical insurance purchase record associated with
the selected presented package of insurance coverages; and
determine a super-stretch package that provides for additional
coverage and coverage limits over the stretch package, based on the
classification code of the matching representative historical
insurance purchase record associated with the selected presented
package of insurance coverages; wherein the stretch package and the
super-stretch package comprise additional coverage
configurations.
18. The system of claim 15, wherein the one or more data storage
devices further store historical insurance coverage package data;
wherein the display presented is further configured to allow a
modification of at least one term of a selected one of the
determined coverage configurations; and wherein the one or more
computer processors are further operative with the program
instructions to: determine, responsive to a receipt of an
indication of modification of at least one term of one of the
determined coverage configurations, one or more other insurance
coverage packages based a market basket analysis of the selected
presented package of insurance coverages and the historical
insurance coverage package data, and provide data for a display for
presentation the one or more other insurance coverage packages, the
display being further configured to allow a selection to receive a
quotation for a selected one of the one or more other insurance
coverage packages.
19. The system of claim 15, wherein the one or more computer
processors being operative with the program instructions to
determine the one or more of the stretch packages, the umbrella
coverage packages, and line of business coverage packages not
included in the selected presented package of insurance coverages
comprises the one or more computer processors being operative with
the program instructions to: determine, responsive to a
determination that the selected presented package of insurance
coverages does not include stretch packages, one or more stretch
packages based on the selected presented package of insurance
coverages, wherein the one or more stretch packages comprise
additional coverage configurations that provide for one or both of
additional coverage and coverage limits over the selected presented
package of insurance coverages; determine, responsive to a
determination that the selected presented package of insurance
coverages does not include umbrella coverage packages, one or more
umbrella coverage packages for the selected presented package of
insurance coverages, wherein the umbrella coverage packages
comprise additional coverage configurations that provide for one or
both of coverage in addition to or in excess of the coverage limits
of the selected presented package of insurance coverages.
determine, responsive to a determination that the selected
presented package of insurance coverages does not include
additional line of business coverage packages, one or more
additional line of business coverage packages for the selected
presented package of insurance coverages, wherein the one or more
additional line of business coverage packages comprise additional
coverage configurations that provide for coverage in addition to or
in excess of the coverage limits over the selected presented
package of insurance coverages.
20. The system of claim 15, wherein the one or more data storage
devices further store insurance coverage configuration rules; and
wherein the one or more computer processors are further operative
with the program instructions to: responsive to a determination
that the selected presented package of insurance coverages includes
stretch packages, umbrella coverage, and additional line of
business coverage packages, determine additional coverage
configurations including coverage packages with one or both of
different coverage limits or different deductibles than the
selected presented package of insurance coverages based on the
insurance coverage configuration rules; wherein the determined
coverage configurations further include the additional coverage
configurations.
Description
CROSS-REFERENCE TO RELATED APPLICATION
[0001] This application is a continuation application of co-pending
U.S. patent application Ser. No. 12/470,162 entitled "Systems And
Methods For Providing Coverage Recommendation Engine", filed May
21, 2009, which application claims priority to U.S. Provisional
Patent Application Ser. No. 61/173,249, filed on Apr. 28, 2009 and
entitled "Systems and Methods for Providing Coverage Recommendation
Engine", the contents of which are incorporated herein by reference
for all purposes.
FIELD
[0002] Embodiments relate to systems and methods to facilitate the
selection of insurance coverages, and may provide insurance
coverage recommendations based on current and historical entity
data.
BACKGROUND
[0003] Insurance companies offer a great number of insurance
coverages, particularly in the commercial sector. Consequently, it
can be difficult for an insurance agent to determine appropriate
insurance coverages, limits and deductibles for a particular
commercial customer. This determination is significantly more
difficult for a business owner, who is typically unfamiliar with
available coverages and/or the extent of potential exposures.
Further exacerbating these difficulties is the fact that some
commercial insurance coverages are suited for use together, while
others are incompatible with one another.
[0004] In some scenarios, a business owner compiles a significant
amount of information describing the business or other entity to be
insured. This information is provided to an agent, who might
recommend a set of insurance coverages based on the information and
on her professional experience. Aggregating and providing this
information is particularly burdensome to a business owner, and the
prospect thereof may discourage the business owner from requesting
a recommendation. The typical lag time for receiving a requested
recommendation may further disincentivize the business owner from
requesting the recommendation. Moreover, the quality of the
recommendation is limited by the professional experience of the
agent.
[0005] Some conventional systems may attempt to electronically
determine commercial insurance coverages for a business based on
received information describing the business. These systems may
operate based on a set of preconfigured rules (e.g., if
revenue>$1M and business="General Contractor", then suggest
Coverage Package A). Due to the vast number of possible insurance
coverage combinations and the inherent inflexibility of generic
preconfigured rules, these systems cannot be confidently relied
upon to determine an appropriate set of commercial insurance
coverages.
[0006] Systems and methods are desired to facilitate the
recommendation of insurance coverages which are appropriate for a
given entity. It is desirable for such a recommendation to be
provided based on a small set of data associated with the entity.
Also desired are prompt presentation of the recommendation, and/or
determination of the recommendation based on significant quantities
of historical data associated with other entities and insurance
coverages.
SUMMARY
[0007] Some embodiments provide efficient recommendation of
insurance coverages from among a multitude of insurance coverages
(e.g., such as available commercial insurance coverages) based on a
small set of data provided by an entity to be insured and on
historical data associated with other entities and insurance
coverages.
[0008] A computer system is disclosed which includes a data storage
device. Functions performed by the data storage module include
receiving, storing and providing access to historical entity data
and insurance coverage package data. A computer processor may
execute program instructions and retrieve the historical entity
data and insurance coverage package data from the data storage
device, while a memory, coupled to the computer processor, stores
program instructions for execution by the computer processor.
[0009] A recommendation engine receives current entity data,
creates a current entity representative record based on the
received current entity data and historical entity data, creates
one or more historical entity representative records for each of a
plurality of insurance coverage packages, identifies one of the
historical entity representative records based on the current
entity representative record, and identifies one or more of the
plurality of insurance coverage packages based on the identified
historical entity representative record when executed by the
computer processor.
[0010] The computer system also includes a communication device,
coupled to the computer processor, to present the identified
insurance coverage package, and a payment device to process a
payment associated with one of the identified one or more insurance
coverage packages, the payment to establish an insurance contract
with the current entity based on the one of the identified one or
more insurance coverage packages.
[0011] In some embodiments, the current entity representative
record created based on the historical data does not necessarily
describe the current entity, but provides an efficient link for
matching the current entity with a set of insurance coverages from
among a multitude of insurance coverages based on the historical
data.
[0012] With these and other advantages and features that will
become apparent, embodiments may be more clearly understood by
reference to the following detailed description, the appended
claims, and the drawings attached hereto.
BRIEF DESCRIPTION OF THE DRAWINGS
[0013] FIG. 1 illustrates a system architecture within which some
embodiments may be implemented.
[0014] FIG. 2 is a partial functional block diagram of a computer
system provided in accordance with some embodiments.
[0015] FIG. 3 is a partial functional block diagram of a computer
system provided in accordance with some embodiments.
[0016] FIG. 4 is a flow diagram of a process according to some
embodiments.
[0017] FIG. 5 is an outward view of an interface to receive current
entity data according to some embodiments.
[0018] FIG. 6 is a tabular representation of a current entity data
record according to some embodiments.
[0019] FIG. 7 is a simplified representation of clusters of
historical entity data according to some embodiments.
[0020] FIG. 8 is a tabular representation of a portion of current
entity representative record according to some embodiments.
[0021] FIG. 9 illustrates the determination of insurance coverage
packages according to 10 some embodiments.
[0022] FIG. 10 is a simplified representation of clusters of
historical entity data corresponding to insurance coverage packages
according to some embodiments.
[0023] FIG. 11 is a tabular representation of data associating
insurance coverage packages and one or more representative
historical entities according to some embodiments.
[0024] FIG. 12 is an outward view of an interface to present
insurance coverage packages according to some embodiments.
[0025] FIG. 13 is a flow diagram of a process according to some
embodiments.
[0026] FIG. 14 is an outward view of an interface to present
coverage configurations according to some embodiments.
[0027] FIG. 15 illustrates the determination of coverage
recommendations according to some embodiments.
[0028] FIG. 16 is an outward view of an interface to present
coverage recommendations according to some embodiments.
[0029] FIG. 17 illustrates a system architecture to provide a
coverage recommendation, quote and policy according to some
embodiments.
DETAILED DESCRIPTION
[0030] FIG. 1 illustrates system architecture 100 within which some
embodiments may be implemented. Although the devices of
architecture 100 are depicted as communicating via dedicated
connections, it should be understood that all illustrated devices
may communicate to one or more other illustrated devices through
any number of other public and/or private networks, including but
not limited to the Internet. Two or more of the illustrated devices
may be located remote from one another and may communicate with one
another via any known manner of network(s) and/or a dedicated
connection. Moreover, each device may comprise any number of
hardware and/or software elements suitable to provide the functions
described herein as well as any other functions. Other topologies
may be used in conjunction with other embodiments.
[0031] According to the example of FIG. 1, data entry terminals 110
comprise devices for providing data relating to entities and/or
insurance coverage packages. An entity may comprise a business, an
individual, and/or any physical or mental construct for which
insurance coverage may be provided. Entity data may specify entity
type, entity location, annual revenue, number of employees, and SIC
code, but embodiments are not limited thereto.
[0032] An insurance coverage package may comprise a set of one or
more insurance coverages. Each of the one or more insurance
coverages may insure against one or more risks. In the present
description, an insurance coverage defines the parameters of the
risk(s) which are covered thereby, and a configuration is a package
of one or more insurance coverages, including specified limits and
deductibles for each of the one or more insurance coverages.
[0033] Data entry terminals 110 may be operated by an insurer, an
insurance agent, a third party data provider, a consumer, or any
other suitable source of data. Any number of data entry terminals
110 may be employed to receive entity data and insurance coverage
package data according to some embodiments. The data may be
generated and received using any systems that are or become
known.
[0034] The entity data and insurance coverage package data are
received and stored by data warehouse 120. Any number or type of
data storage systems may store the data in any suitable manner
according to some embodiments. Non-exhaustive examples include a
relational database system, a spreadsheet, and any other data
structure that is amenable to parsing. Data warehouse 120 may
receive and store entity data and insurance coverage package data
which were received from sources other than data entry terminals
110.
[0035] Recommendation engine 130 receives the entity data and
insurance coverage package data from data warehouse 120.
Recommendation engine 130 may identify one or more insurance
coverage packages based on the received data and on data received
from Web server 140.
[0036] In this regard, Web server 140 may receive entity data from
requestor terminals 150. Requestor terminals 150 may be operated by
an insurance agent, a business owner, etc. seeking a recommendation
of insurance coverages. Requestor terminals 150 may interact with
Web pages provided by Web server 140 to request a recommendation
and to provide data relating to the entity to be insured
(hereinafter referred to as the "current" entity). This data may be
transmitted to recommendation engine 130 to determine a
recommendation as described in detail below.
[0037] Briefly, recommendation engine 130 may receive the current
entity data (e.g., from Web server 140), create a current entity
representative record based on the received current entity data and
historical entity data (e.g., from data warehouse 120), create one
or more historical entity representative records for each of a
plurality of insurance coverage packages (e.g., received from data
warehouse 120), identify one of the historical entity
representative records based on the current entity representative
record, and identify one or more of the plurality of insurance
coverage packages based on the identified historical entity
representative record. Web server 140 may provide a Web page which
presents the identified insurance coverage package as a
recommendation to one of requestor terminals 150.
[0038] Recommendation engine 130 may comprise any combination of
hardware and/or processor-executable instructions stored on a
tangible medium. According to some embodiments, recommendation
engine 130 is a component of data warehouse 120 or data Web server
140.
[0039] It should be noted that embodiments are not limited to the
devices illustrated in FIG. 1. Each device may include any number
of disparate hardware and/or software elements, some of which may
be located remotely from one another. Functions attributed to one
device may be performed by one or more other devices in some
embodiments. The devices of system 100 may communicate with one
another (and with other non-illustrated elements) over any suitable
communication media and protocols that are or become known.
[0040] FIG. 2 is a block diagram of computer system 200 according
to some embodiments. Computer system 200 may perform the functions
attributed above to recommendation engine 130. Computer system 200
includes computer processor 201 operatively coupled to
communication device 202, data storage device 204, one or more
input devices 206 and one or more output devices 208. Communication
device 202 may facilitate communication with external devices.
Input device(s) 206 may comprise, for example, a keyboard, a
keypad, a mouse or other pointing device, a microphone, knob or a
switch, an infra-red (IR) port, a docking station, and/or a touch
screen. Input device(s) 206 may be used, for example, to enter
information into computer system 200. Output device(s) 208 may
comprise, for example, a display (e.g., a display screen) a
speaker, and/or a printer.
[0041] Data storage device 204 may comprise any appropriate
information storage device, including combinations of magnetic
storage devices (e.g., magnetic tape and hard disk drives), optical
storage devices, and/or semiconductor memory devices such as Random
Access Memory (RAM) devices and Read Only Memory (ROM) devices.
[0042] Data storage device 204 stores program instructions for
execution by processor 201. Recommendation engine 210 may comprise
a set of such instructions, and may be executed by processor 201 to
cause system 200 to operate as described above with respect to
recommendation engine 130 of FIG. 1. This operation may initially
include operation of communication device 202 to retrieve, from
external data storage device 220, historical entity data 222 and
insurance coverage package data 224. In some embodiments, and as
described with respect to FIG. 1, data storage device 220 may
comprise a data warehouse.
[0043] Data storage device 204 stores other data used and/or
generated during operation according to some embodiments. This data
includes clusters of entity data 211, packages and associated
representative historical entity records 212, configuration rules
213 and recommendation rules 214. The nature and usage of this
stored data according to some embodiments will be described in
detail below.
[0044] FIG. 3 is a block diagram of computer system 300 according
to some embodiments. Computer system 300 may perform the functions
attributed above to a requestor terminal 150. Computer system 300
includes computer processor 301, which is operatively coupled to
communication device 302, data storage device 304, one or more
input devices 306 and one or more output devices 308. Communication
device 302 may facilitate communication with external devices.
Input device(s) 306 and output device(s) 308 may comprise any
devices described above with respect to input device(s) 206 and
output device(s) 208, but are not limited thereto.
[0045] Data storage device 304 may comprise any appropriate
information storage device, including combinations of magnetic
storage devices (e.g., magnetic tape and hard disk drives), optical
storage devices, and/or semiconductor memory devices such as RAM
devices and ROM devices.
[0046] Data storage device 304 stores program instructions for
execution by processor 300, such as Web browser 310. Web browser
310 may be executed by processor 301 to cause system 300 to submit
entity data via a Web page to Web server 140 and receive a Web page
from Web server 140 presenting one or more insurance coverage
packages. Data storage device 304 may also store other
applications, device drivers and data files usable to provide
additional functionality to computer system 300.
[0047] FIG. 4 is a flow diagram of process 400 according to some
embodiments. Various elements of system architecture 100 and/or
computer system 200 may execute process 400 according to some
embodiments. Process 400 may be embodied within program
instructions of recommendation engine 210 of computer system 200,
but embodiments are not limited thereto.
[0048] Process 400 and all other processes mentioned herein may be
embodied in processor-executable program instructions read from one
or more computer-readable media, such as a floppy disk, a CD-ROM, a
DVD-ROM, a Zip.TM. disk, and a magnetic tape, and then stored in a
compressed, uncompiled and/or encrypted format. In some
embodiments, hard-wired circuitry may be used in place of, or in
combination with, program instructions for implementation of
processes according to some embodiments. Embodiments are therefore
not limited to any specific combination of hardware and
software.
[0049] Initially, at 405, current entity data is received. The
current entity data includes any data associated with an entity for
which insurance coverage recommendations are desired. The current
entity data may be received from the current entity, from third
party sources (e.g., public records, Secretary of State databases),
from proprietary data sources, and from any other suitable data
sources.
[0050] The current entity data may include, but is not limited to,
types of insurance coverages in which the current entity is
interested (e.g., property, general liability, workers'
compensation), entity type, address, zip code, annual revenue,
number of employees, and SIC code. Some examples of current entity
data which may be received from proprietary data sources include
derived insurance company metrics such as issue rate per SIC codes,
Catastrophic/Terrorism threat based on location, appetite (Target,
Acceptable, Limited, Not Acceptable) based on SIC code and state,
and business insurance scores indicating the desirability of the
entity as an insurance customer.
[0051] FIG. 5 is an outward view of interface 500 from which entity
data may be received according to some embodiments of 405. In one
example, a user operates one of requestor terminals 150 or computer
system 300 to execute a Web browser. The user manipulates an
interface of the Web browser to access a Web page of Web server 140
(or of computer system 200) presenting interface 500.
[0052] Interface 500 includes area 510 into which the user inputs
data associated with the current entity. The current entity is an
entity for which insurance recommendations are desired, and need
not be affiliated with the user. As shown, area 510 allows the user
to specify coverage type(s), business type and business location,
and to submit the data for reception at 405 using Submit button
520. Coverage types are not limited to those shown in FIG. 5, and
may also or alternatively include commercial auto, marine,
professional liability, or any others that are or become known.
[0053] The data requested in area 510 may change depending upon the
selected coverage type(s). For example, area 510 may include a
field for annual revenue if liability coverage was selected, and/or
a field for number of employees if workers' compensation coverage
was selected.
[0054] Embodiments may allow for more, less and/or different
current entity data to be specified in area 510. Some embodiments
do not require the user to complete all data fields of area 510. It
may be advantageous to limit an amount of current entity data
requested by interface 500. Such limitations may simplify, and
thereby encourage, usage of interface 500.
[0055] As mentioned above, the current entity data received at 405
may also include data retrieved from third parties and/or
internally derived data. This data may be retrieved or derived
based on the information received from the user via user interface
500.
[0056] FIG. 6 is a tabular representation of current entity data
600 received at 405 according to some embodiments. Data 600
includes user-entered data, data received from third parties and
internally-derived data. In this regard, a data field (e.g.,
Revenue) may be populated with data received from the user via
interface 500. However, if the user did not complete this data
field of area 510 (or if area 510 did not include this field), this
field may be populated with data retrieved from a third party.
Embodiments are not limited to the fields shown in FIG. 6, and each
data field need not be populated in some embodiments.
[0057] After reception of the current entity data, clusters of
historical entity data are created at 410. In contrast to the flow
of process 400, some embodiments may create the clusters prior to
reception of the current entity data.
[0058] The historical entity data used at 410 may include
previously-stored user-entered data, third party data, and internal
data such as that described above. The historical entity data may
be stored in data warehouse 120 as multiple records such as that
illustrated in FIG. 6, with each record associated with a
particular entity. Each field of each record need not be
populated.
[0059] The historical entity data may have been previously acquired
in any manner, including those described with respect to 405 above.
For example, an entity may have entered a coverage type and
business type during a prior insurance shopping experience, a
corresponding SIC code or codes, number of locations, addresses,
number of employees and annual revenue may have been fetched from a
third party during the shopping experience, and internal data may
have been derived based thereon.
[0060] The historical entity data may be clustered at 410 according
to any clustering system that is or becomes known. In some
embodiments, the data is clustered by a combination of the Balanced
Iterative Reducing and Clustering using Hierarchies (BIRCH)
algorithm (e.g., for metric values) and the M-BILCOM algorithm
(e.g., for metric and categorical values).
[0061] FIG. 7 is a simplified representation of clusters of
historical entity data records according to some embodiments.
Specifically, the historical entity data records are clustered
across many dimensions (e.g., one dimension per data field) but
FIG. 7 shows only two dimensions. Each cluster (represented by a
dashed circle) may be represented by its weighted midpoint across
all its dimensions (e.g., data fields).
[0062] Next, at 415, the current entity data is matched to one of
the clusters of historical entity data created at 410. Any suitable
matching algorithm may be employed in some embodiments of 415.
According to some examples, an acceptable "similarity" distance
between certain metric values of the records is specified (e.g., if
the current entity data record contains number of years in
business=20, match clusters where number of years is +/-5 of 20
(i.e., 15-25). An ordering of categorical values may also be
specified (e.g., SIC code 1731 (electrical work) is closer to 1799
(special trade contractors) than 1741 (masonry and other
stonework). Moreover, the matching algorithm may specify acceptable
thresholds for appetite (e.g., T & A, but not L & N) and
Catastrophic/Terrorism threat levels.
[0063] A current entity representative record is created at 420
based on the matched cluster. As noted above, a cluster may be
represented by its weighted midpoint across all its dimensions.
Accordingly, the value of each field of the current entity
representative record may equal the weighted midpoint of that field
(i.e., dimension) in the matched cluster. FIG. 8 is a tabular
representation of current entity representative record 800
according to the present example. As shown, the field values of the
current entity representative record 800 are not identical to the
field values of the current entity data 600 of FIG. 6, although
record 800 and data 600 are both associated with the current
entity.
[0064] A plurality of insurance coverage packages are determined at
425. Each of the determined insurance coverage packages may include
one or more insurance coverages. According to some embodiments, 425
begins by identifying customer accounts associated with
previously-issued insurance coverages. Data representing these
accounts may be stored in data warehouse 120 and/or any other
suitable enterprise storage systems.
[0065] Each customer account is associated with one or more issued
insurance coverage packages, each of which includes one or more
insurance coverages. Data is collected for each customer account
including issued insurance coverages per package and premium per
insurance coverage, SIC code, business insurance score, issue rate,
number of employees, number of locations, number of buildings,
etc.
[0066] The insurance coverages of each issued package are
translated into a string of codes (e.g., 0071-0134-0180) for each
customer account, resulting in one or more coverage code strings
per customer account. The coverage code strings are ordered
lexicographically so that, with reference to the above example,
code 0071 will always appear before code 0134 if an issued package
includes both corresponding coverages.
[0067] Next, a number of unique instances of each coverage code
string is determined. The coverage code strings may initially be
filtered based on a market segment of interest (e.g., defined by
SIC code, region, number of employees, and/or any other data). That
is, the determination of the number of unique instances may
consider only those coverage strings associated with a customer
account in a market segment of interest.
[0068] FIG. 9 shows analysis result 900 according to the foregoing
example. Each coverage code string of analysis result 900
represents an insurance coverage package including one or more
insurance coverages. The plurality of packages may be determined at
425 from the coverage code strings of analysis result 900. For
example, analysis result 900 ranks the coverage code strings
according to their number of unique instances. The top three
coverage code strings may be used to determine three packages at
425, with each package including the insurance coverages specified
by the coverage codes of one of the three coverage code
strings.
[0069] Clusters of historical entities associated with each of the
plurality of packages are created at 430. Accordingly, for each one
of the plurality of insurance coverage packages determined at 425,
historical entity data is reviewed to identify historical entities
to whom the insurance coverage package was issued. Historical
entity data records for each of the identified historical entities
are used to create clusters for each of the plurality of insurance
coverage packages as described above with respect to 410.
[0070] FIG. 10 represents clusters of the historical entity data
records associated with one insurance coverage package according to
some embodiments. FIG. 10 shows only two dimensions, but the
historical entity data records are clustered across many dimensions
as described above. Similar clusters are created for each other
insurance coverage package determined at 425.
[0071] A representative record is created at 435 for each cluster
of historical entities associated with each of the plurality of
determined insurance coverage packages. The record may include a
coverage string field representing an insurance coverage package
and fields representing the weighted midpoint of each dimension of
a cluster of historical entities who hold the insurance coverage
package. With reference to the example of FIG. 10, three
representative records would be created, with each record having a
same coverage string field and with the contents of the other
fields specifying the weighted midpoints of each dimension of one
of the particular three clusters.
[0072] FIG. 11 provides an example of representative records 1100
created according to some embodiments of 435. Each record of
records 1100 is associated with an insurance coverage package
specified by its Coverage Code String field. The remaining fields
describe a representative historical entity to which the insurance
coverage package was issued. As mentioned above, multiple records
of representative records 1100 may be associated with a same
insurance coverage package, since several clusters of historical
entity data may have been created for that insurance coverage
package at 430.
[0073] Next, at 440, the current entity representative record
created at 420 is matched to one or more of the representative
records created at 435. The matching may proceed as described at
415 or using any other suitable algorithm for determining a match
between multi-dimensional data records.
[0074] One or more packages are determined at 445 based on the
matched representative records. For example, it may be determined
at 440 that the current entity representative record matches
representative records 1110 and 1120 of FIG. 11. These
representative records are associated with coverage code strings
"0071-0134-0180" and "0071-0086-0169-0180", respectively.
Accordingly, a first package is determined at 445 including three
insurance coverages corresponding to the coverage codes
"0071-0134-0180", and a second package is determined including four
insurance coverages corresponding to the coverage codes
"0071-0086-0169-0180".
[0075] The determined packages are presented at 450. FIG. 12 shows
interface 500 updated to present packages 1200 according to some
embodiments. FIG. 12 shows three determined packages, each
including more than one insurance coverage. The order in which the
packages are presented may be based on a similarity of their
corresponding historical representative record to the current
entity representative record, a total potential premium of their
constituent coverages, and/or on other suitable factors.
[0076] Embodiments of the foregoing may therefore provide efficient
recommendation of appropriate insurance coverage packages for a
given entity.
[0077] FIG. 13 is a flow diagram of process 1300 to present
insurance coverage recommendations according to some embodiments.
Various elements of system architecture 100 and/or computer system
200 may execute process 1300 according to some embodiments. Process
1300 may be embodied within program instructions of recommendation
engine 210 of computer system 200, but embodiments are not limited
thereto.
[0078] Initially, at 1305, a selection of a presented package of
insurance coverages is received. Continuing with the above example,
a user may operate interface 500 to select one of presented
packages 1200. In this regard, process 1300 may proceed directly
after process 400 in some embodiments.
[0079] Coverage configurations of the selected package are
determined at 1310 based on configuration rules. A coverage
configuration specifies limits and deductibles for the insurance
coverages within a package. According to some embodiments,
configuration rules such as configuration rules 213 may take the
insurance coverages of the selected package as input and create
multiple coverage configurations at 1310 using rules such as:
[0080] 1) If the coverages of the selected package do not contain
"stretches" (i.e., added coverage limits and coverage), designate
the selected package as the basic configuration (e.g., silver), but
add two more configurations (e.g., gold, platinum) by adding basic
stretch and super-stretch, respectively, for the SIC code of the
matching representative record;
[0081] 2) If the coverages of the selected package contain stretch,
add umbrella coverage and any additional lines of business coverage
(e.g., selected package includes property and general liability
coverages, add workers compensation and commercial auto coverages);
and
[0082] 3) If the user selected coverage string contains coverages
from all lines of business and umbrella coverage, then create three
configurations respectively associated with low, medium, and high
limits and low, medium, and high deductibles.
[0083] The determined coverage configurations are presented at
1315. FIG. 14 illustrates user interface 500 with area 1400 to
present Silver, Gold and Platinum coverage configurations. As
shown, the user may manipulate elements of area 1400 to select a
coverage or modify a coverage (i.e., change limits and
deductibles). Such a manipulation is detected at 1320, and triggers
the presentation of one or more other insurance coverages at
1325.
[0084] The one or more other insurance coverages are presented
based on the selected insurance coverage package. The one or more
other insurance coverages may be presented as further coverage
recommendations, and may be identified based on historical data.
According to some embodiments, Market Basket Analysis is used at
1325 to identify one or more other insurance coverages that have
been bought along with the selected coverages.
[0085] Generally, Market Basket Analysis refers to the
identification of items that occur together in a given event or
record. The output of Market Basket Analysis is a set of discovery
rules based on frequency counts of the number of times items occur
alone and in combination in historical data. The rules indicate an
association between two or more items.
[0086] Market basket rules may provide four useful metrics for the
identification of other insurance coverages at 1325: Confidence
factor; Level of support; Lift; Expected confidence. Confidence
factor equals the percentage of cases in which a consequent appears
given that the antecedent has occurred, and defines the strength of
an association between the consequent and the antecedent. Level of
support indicates how frequently the combination occurs in the
market basket (i.e., the historical data). Expected confidence is
equal to the number of consequent transactions divided by the total
number of transactions. Lift is equal to the confidence factor
divided by the expected confidence. Lift is a factor by which the
likelihood of consequent increases given an antecedent.
[0087] FIG. 15 is a tabular representation of data for providing an
example of Market Basket Analysis used in some embodiments of 1325.
According to the example, if a user selects coverage "BPP without
wind exclusion" through area 1400 of interface 500 (e.g., to learn
about the coverage or to adjust its limits or deductibles), a
recommendation rule based on the FIG. 15 data will identify
insurance coverage 73 and insurance coverage 70 at 1325. The
recommendation rules can be implemented as rules (e.g.,
recommendation rules 214 of system 200) run in a rule engine or as
condition statements in any standard programming language.
[0088] FIG. 16 illustrates area 1600 of interface 500 for
presenting the one or more other insurance coverages at 1325.
According to some embodiments, the presentation of the coverages in
area 1600 (e.g., listing order, font size) is based on their
respective Levels of support.
[0089] At 1330, it is determined whether a quote has been requested
for the configuration shown in area 1400. If the user has not
selected Quote button 1610, flow returns to 1320 to allow the user
to change or modify a displayed coverage. Flow continues as
described above to present other insurance coverages in area 1600
in response to user modification of area 1400 until Quote button
1610 is selected.
[0090] Once quote button 1610 is selected, any additional
information needed to generate the quote is gathered at 1335.
Gathering the needed information, if any, may comprise querying the
user via subsequent Web pages, telephoning the user, accessing
third party data, etc. Thereafter, at 1340, a quote is generated
and presented to the user. The quote may be generated automatically
or may require intervention of an underwriter or other
personnel.
[0091] According to some embodiments, the user may also be
presented with other policy-related benefits and services once a
configuration is selected for quoting. These items may include
rewards, discounts, billing options, etc., and their presentation
may be based on the particular selected configuration.
[0092] FIG. 17 is a diagram illustrating system architecture 1700
to provide a quote and a policy according to some embodiments. Each
element of architecture 1700 may be implemented using one or more
hardware devices, and two or more elements may be implemented using
a single hardware device. Architecture 1700 includes data warehouse
120, recommendation 130, Web server 140 and requestor terminals
150, each of which may perform functions such as those attributed
thereto in the above description.
[0093] According to some embodiments, recommendation engine 130
transmits an indication to quoting engine 1710 once quote button
1610 of FIG. 1600 is selected. The indication may include an
insurance configuration that was selected (and perhaps modified) by
a requestor operating one of terminals 150 as described above.
Quoting engine 1710 transmits information relating to the selected
configuration and the entity to be insured to rating engine 1720
and receives rating information in return according to known
protocols.
[0094] Quoting engine 1710 thereafter transmits underwriting
information to underwriting server 1730. Underwriting server 1730
includes underwriting application 1732 and underwriting database
1734. Underwriter terminals 1740 may be operated by underwriting
personnel to perform underwriting tasks based on the underwriting
information and using underwriting application 1730 and database
1734. As mentioned above, underwriting tasks may include
acquisition of additional information that may be helpful in
performing the underwriting tasks.
[0095] Underwriting server 1730 may transmit the results of the
underwriting tasks to quoting engine 1710 and/or to payment/policy
administration engine 1750. Based on the results, rating engine
1720 (and/or quoting engine 1710) formulates a quote (e.g.,
according to known processes) and transmits the quote to the user
via Web server 140 or another communication mode (e.g., another Web
server, electronic mail, post, etc.). Once the user indicates
acceptance of the quote, payment/policy administration engine 1750
issues one or more corresponding policies.
[0096] In addition to the quote, the user may also receive forms
for establishing a contract for the selected configuration as well
as for processing premium payments. Accordingly, payment/policy
administration engine 1750 may also debit a bank account of the
insured entity's and issue policy forms to the insured entity.
Processing the payment is intended to establish an insurance
contract with the entity based on the selected configuration.
[0097] It should be noted that any of quoting engine 1710, rating
engine 1720, underwriting engine 1730 and payment/policy
administration engine 1750 may be in direct communication with
recommendation engine 130, data warehouse 120, or any other system
for accessing data, rules, forms, etc. needed to perform their
respective tasks.
[0098] The embodiments described herein are solely for the purpose
of illustration. Those in the art will recognize that other
embodiments may be practiced with modifications and alterations
limited only by the claims.
* * * * *