U.S. patent application number 14/311046 was filed with the patent office on 2014-10-09 for systems and methods for customizing insurance.
The applicant listed for this patent is ALLSTATE INSURANCE COMPANY. Invention is credited to Thomas J. Wilson, Floyd M. Yager.
Application Number | 20140304011 14/311046 |
Document ID | / |
Family ID | 51655109 |
Filed Date | 2014-10-09 |
United States Patent
Application |
20140304011 |
Kind Code |
A1 |
Yager; Floyd M. ; et
al. |
October 9, 2014 |
SYSTEMS AND METHODS FOR CUSTOMIZING INSURANCE
Abstract
System and methods provide customizable insurance according to
consumer preferences. Demand simulators guide the creation of
optimized packages of features, which consumers may select from to
form an insurance product appropriate for their particular needs.
Packages may be formed with a particular appeal to consumers with
common needs, wants, or characteristics. In addition, methods and
systems are provided for presenting insurance products for
consideration by customers over a network. Presented insurance
products may be formed through an optimization process or according
to customer preferences.
Inventors: |
Yager; Floyd M.; (Park
Ridge, IL) ; Wilson; Thomas J.; (Chicago,
IL) |
|
Applicant: |
Name |
City |
State |
Country |
Type |
ALLSTATE INSURANCE COMPANY |
Northbrook |
IL |
US |
|
|
Family ID: |
51655109 |
Appl. No.: |
14/311046 |
Filed: |
June 20, 2014 |
Related U.S. Patent Documents
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Application
Number |
Filing Date |
Patent Number |
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14139048 |
Dec 23, 2013 |
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14311046 |
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13730079 |
Dec 28, 2012 |
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14139048 |
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13353218 |
Jan 18, 2012 |
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13730079 |
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11774442 |
Jul 6, 2007 |
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13353218 |
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11270611 |
Nov 10, 2005 |
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13730079 |
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60629318 |
Nov 19, 2004 |
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Current U.S.
Class: |
705/4 |
Current CPC
Class: |
G06Q 40/08 20130101;
G06Q 30/0621 20130101 |
Class at
Publication: |
705/4 |
International
Class: |
G06Q 40/08 20120101
G06Q040/08; G06Q 30/06 20060101 G06Q030/06 |
Claims
1. A system of apparatuses comprising: an insurance customer
terminal including, at least one processor; a memory unit; at least
one input device; and an electronic display; and an insurance
computer server including, at least one processor; and a memory
storing computer-readable instructions that, when executed by the
processor, cause the insurance computer server to: transmit an
insurance policy customization user interface to the insurance
customer terminal via a computer network; receive, from the
insurance customer terminal and via the computer network, an
indication of a selection of a standard insurance package from the
user interface; determine a premium price associated with the
selected standard insurance package; receive, from the insurance
customer terminal and via the computer network, an indication of a
selection of one or more optional insurance features not included
in the standard insurance package; determine one or more feature
prices associated with the one or more selected optional insurance
features; and calculate an insurance policy premium based on the
premium price associated with the selected standard insurance
package and the one or more feature prices associated with the one
or more selected optional insurance features.
2. The system of claim 1, the memory unit of the insurance customer
terminal storing computer-readable instructions that, when executed
by the processor, cause the insurance customer terminal to perform:
receive the insurance policy customization user interface from the
insurance computer server, and display the insurance policy
customization user interface via the electronic display; receive a
first user input via the at least one input device corresponding to
the selection of the standard insurance package; display a set of
optional insurance features within the insurance policy
customization user interface, via the electronic display, wherein
the first set of optional insurance features is determined based on
selection of the standard insurance package; receive a second user
input via the at least one input device corresponding to the
selection of the one or more optional insurance features not
included in the standard insurance package; and transmit data
identifying the standard insurance package and the selected one or
more optional insurance features via the computer network to the
insurance computer server.
3. The system of claim 1, wherein the indication of the selection
of one or more optional insurance features comprises: one or more
indications corresponding to customer selections of one or more
insurance options packages, each said insurance options package
comprising a plurality of insurance features not included in the
standard insurance package; and one or more additional indications
corresponding to customer selections of one or more ala carte
insurance features, each ala carte insurance feature not included
in the standard insurance package or in the one or more selected
insurance options packages.
4. The system of claim 1, wherein said one or more optional
insurance features comprises a first optional insurance feature
corresponding to an additional insurance coverage offered for an
additional premium price.
5. The system of claim 4, wherein said one or more optional
insurance features further comprises a second optional insurance
feature corresponding to a reduced premium price offered for an
additional customer requirement.
6. The system of claim 1, wherein the insurance policy
customization user interface corresponds to a vehicle insurance
customization user interface, and wherein the optional insurance
features include one or more of: an accident waiver enhancement
feature; a safe driving deductible reward feature; a safe driving
bonus feature; a repair or replacement coverage feature; or a loan
or lease gap coverage feature.
7. The system of claim 1, wherein the insurance policy
customization user interface corresponds to a homeowners insurance
customization user interface, and wherein the optional insurance
features include one or more of: a home value protection feature;
an identity theft coverage feature; a claims free discount feature;
a blanket protection of valuables feature; a limited personal
umbrella policy feature; a water backup feature; or an inventory
and appraisal tool feature.
8. The system of claim 1, wherein receiving the indication of the
selection of one or more optional insurance features comprises:
receiving a customer selection corresponding to a first insurance
options package comprising a first plurality of insurance features;
and receiving a customer selection corresponding to a second
insurance options package comprising a second plurality of
insurance features, wherein selection of the first insurance
options package is a prerequisite to selection of the second
insurance options package.
9. The system of claim 1, wherein receiving the indication of the
selection of one or more optional insurance features comprises:
receiving a customer selection corresponding to a first insurance
options package comprising a first plurality of insurance features;
and receiving one or more customer selections corresponding to one
or more ala carte insurance features, wherein selection of the
first insurance options package is a prerequisite to selection of
each of the selected ala carte insurance features.
10. One or more non-transitory computer-readable storage media
having computer-executable program instructions stored thereon,
that when executed by an insurance server processor, cause the
insurance server processor to: transmit an insurance policy
customization user interface to an insurance customer terminal via
a computer network; receive, from the insurance customer terminal
and via the computer network, an indication of a selection of a
standard insurance package from the user interface; determine a
premium price associated with the selected standard insurance
package; receive, from the insurance customer terminal and via the
computer network, an indication of a selection of one or more
optional insurance features not included in the standard insurance
package; determine one or more feature prices associated with the
one or more selected optional insurance features; and calculate an
insurance policy premium based on the premium price associated with
the selected standard insurance package and the one or more feature
prices associated with the one or more selected optional insurance
features.
11. The non-transitory computer-readable storage media of claim 10,
wherein the indication of the selection of one or more optional
insurance features comprises: one or more indications corresponding
to selection of one or more insurance options packages, each said
insurance options package comprising a plurality of insurance
features not included in the standard insurance package; and one or
more additional indications corresponding to selection of one or
more ala carte insurance features, each ala carte insurance feature
not included in the standard insurance package or in the one or
more selected insurance options packages.
12. The non-transitory computer-readable storage media of claim 10,
wherein the insurance policy customization user interface
corresponds to a vehicle insurance customization user interface,
and wherein the optional insurance features include one or more of:
an accident waiver enhancement feature; a safe driving deductible
reward feature; a safe driving bonus feature; a repair or
replacement coverage feature; or a loan or lease gap coverage
feature.
13. The non-transitory computer-readable storage media of claim 10,
wherein the insurance policy customization user interface
corresponds to a homeowners insurance customization user interface,
and wherein the optional insurance features include one or more of:
a home value protection feature; an identity theft coverage
feature; a claims free discount feature; a blanket protection of
valuables feature; a limited personal umbrella policy feature; a
water backup feature; or an inventory and appraisal tool
feature.
14. The non-transitory computer-readable storage media of claim 10,
wherein receiving the indication of the selection of one or more
optional insurance features comprises: receiving a selection
corresponding to a first insurance options package comprising a
first plurality of insurance features; and receiving a selection
corresponding to a second insurance options package comprising a
second plurality of insurance features, wherein selection of the
first insurance options package is a prerequisite to selection of
the second insurance options package.
15. A system of apparatuses comprising: an insurance customer
terminal including, at least one processor; a memory unit; at least
one input device; and an electronic display; and an insurance
computer server including, at least one processor; and a memory
storing computer-readable instructions that, when executed by the
processor, cause the insurance computer server to perform: receive,
from the insurance customer terminal and via a computer network,
data identifying a first insurance customer; determine a first
insurance package based on the data identifying the first insurance
customer; transmit, to the insurance customer terminal and via the
computer network, an insurance policy customization user interface,
the insurance policy customization user interface identifying the
first insurance package and a plurality of possible customer
modifications to the first insurance package; receive data
corresponding to one or more selected customer modifications to the
first insurance package from the insurance customer terminal; and
calculate an insurance policy premium based on a premium price
associated with the first insurance package and one or more prices
associated with the selected customer modifications.
16. The system of claim 15, the memory unit of the insurance
customer terminal storing computer-readable instructions that, when
executed by the processor, cause the insurance customer terminal to
perform: receive the data identifying the first insurance customer
via the at least one input device, and transmit said data
identifying the first insurance customer to the insurance computer
server; receive the insurance policy customization user interface
from the insurance computer server, and display the insurance
policy customization user interface via the electronic display; and
receive one or more selected customer modifications to the first
insurance package via the insurance policy customization user
interface, and transmit the data corresponding to the one or more
selected customer modifications to the insurance computer
server.
17. The system of claim 16, wherein receiving the one or more
selected customer modifications to the first insurance package via
the insurance policy customization user interface comprises:
receiving, via the insurance policy customization user interface, a
customer selection of an additional insurance feature that is not
included in the first insurance package but is compatible with the
first insurance package.
18. The system of claim 16, wherein receiving the one or more
selected customer modifications to the first insurance package via
the insurance policy customization user interface comprises:
receiving, via the insurance policy customization user interface, a
customer selection of an insurance feature to be removed from the
first insurance package.
19. The system of claim 16, wherein receiving the one or more
selected customer modifications to the first insurance package via
the insurance policy customization user interface comprises:
receiving, via the insurance policy customization user interface, a
customer selection of a replacement insurance feature to substitute
for an existing insurance feature of the first insurance
package.
20. The system of claim 15, wherein the insurance policy
customization user interface corresponds to at least one of a
vehicle insurance customization user interface, a homeowners
insurance customization user interface, or an annuity product
customization user interface.
Description
CROSS-REFERENCE TO RELATED APPLICATIONS
[0001] The present application is a continuation of U.S. patent
application Ser. No. 14/139,048 filed on Dec. 23, 2013 and entitled
"Systems and Methods for Customizing Insurance," which is a
continuation of U.S. patent application Ser. No. 13/730,079 filed
on Dec. 28, 2012 and entitled "Systems and Methods for Customizing
Insurance," which is a continuation of U.S. patent application Ser.
No. 13/353,218 filed on Jan. 18, 2012 and entitled "Systems and
Methods for Customizing Insurance," which is a continuation of U.S.
patent application Ser. No. 11/774,442 filed on Jul. 6, 2007 and
entitled "Systems and Methods for Customizing Insurance," which is
a continuation of U.S. patent application Ser. No. 11/270,611,
filed Nov. 10, 2005 and entitled "Systems and Methods for
Customizing Insurance," which claims priority to U.S. Provisional
Application No. 60/629,318, filed Nov. 19, 2004. The entire
disclosures of each of the above applications are incorporated
herein by reference for all purposes.
TECHNICAL FIELD
[0002] The present invention relates to systems and methods for
customizing property and casualty insurance and, more particularly,
to customizing property and casualty insurance policies according
to consumer preferences. The present invention also provides
systems and methods to design insurance products in a manner that
allows consumers to select insurance packages that include features
they consider appropriate for their needs.
BACKGROUND
[0003] Today's consumer is more pressed than ever for time. With
increasing time demands placed, many consumers do not have much
time to shop, and what time they do have seems to be consumed in
reviewing the massive amount of information they encounter in
shopping. The pressures attendant the time constraints and
information can pervade a consumer's shopping experience, including
shopping for insurance.
[0004] New technologies, however, now make possible aids to help
consumers as they make insurance choices in much less time than
they could years ago. The challenge is how to harness those
technologies.
SUMMARY
[0005] A method consistent with the invention provides insurance
using a data processing system. The method comprises electronically
analyzing, by a processor, data to identify a target population and
a set of insurance features desired by the target population; and
bundling the set of insurance features into an insurance
package.
[0006] Another method consistent with the invention provides
insurance using a data processing system. The method comprises
creating a standard package with a set of insurance features;
electronically analyzing, by a processor, data to identify a market
segment; identifying insurance features desired by the market
segment; and bundling the identified insurance features into an
insurance package.
[0007] Yet another method consistent with the invention creates an
insurance package using a data processing system. The method
comprises creating a standard package with a set of insurance
features; electronically analyzing, by a processor, data gathered
through consumer research to identify a target population;
identifying insurance features desired by the target population;
and bundling the identified insurance features into an insurance
package.
[0008] A system consistent with the invention provides optimized
insurance. The system comprises a memory; a server coupled to a
network, wherein the server executes program instructions for an
optimization process; and a terminal coupled to the network,
wherein the terminal allows a user to execute the optimization
process to create an insurance package.
[0009] Another method consistent with the invention provides
insurance using a data processing system. The method comprises
retrieving, from a database, a profile of a customer accessing a
website; electronically identifying, by a processor, profiles of
customers in common with the profile of a customer; and presenting
an insurance package to the customer for consideration that is
based upon a comparison of the profile of the customer and the
identified profiles.
[0010] Another system consistent with the invention provides
insurance. The system comprises a database, the database storing a
profile of a customer accessing a website; and a processor, the
processor identifying profiles of customers in common with the
profile of a customer and presenting an insurance package to the
customer for consideration that is based upon a comparison of the
profile of the customer and the identified profiles.
[0011] Both the foregoing general description and the following
detailed description are exemplary and explanatory only and do not
restrict the claimed invention.
BRIEF DESCRIPTION OF DRAWINGS
[0012] The accompanying drawings, which are incorporated in and
constitute a part of this specification, illustrate embodiments of
the invention and, together with the description, explain the
principles of the invention. In the drawings:
[0013] FIG. 1 is an exemplary flowchart for optimizing insurance
products;
[0014] FIG. 2 is an exemplary chart comparing feature relevance and
feature differentiation;
[0015] FIG. 3 is an exemplary method of offering insurance
consistent with the principles of the present invention;
[0016] FIG. 4 shows an exemplary insurance product comprising
packages selected from FIG. 3;
[0017] FIG. 5 is another exemplary method of offering insurance
consistent with the principles of the present invention;
[0018] FIG. 6 shows an exemplary insurance product comprising
packages selected from FIG. 5;
[0019] FIG. 7 is an exemplary system consistent with the present
invention; and
[0020] FIG. 8 is an exemplary flowchart for presenting insurance
packages to a customer for the customer's consideration, consistent
with an embodiment of the present invention.
DETAILED DESCRIPTION
[0021] Generally, insurance is an agreement by which an insurer,
sometimes referred to as an underwriter, undertakes to indemnify
the insured party against loss, damage, or liability arising from
certain risks. The consideration paid by an insured party is
typically referred to as a premium, which is paid to keep the
insurance in effect. In general, an insurance policy is a contract
of insurance that defines the rights and duties of the contracting
parties. A typical insurance policy includes limits on the amount
of risk that the insurer will cover.
[0022] For the purposes of this application, an insurance product
includes more than the insurance policy. It also includes services,
distribution channels, and other components which may impact the
customer experience.
[0023] Systems and methods consistent with the present invention
provide consumers with insurance products that may help them
address some of their individual needs or wants by including
features that a particular group may find desirable or appropriate.
For the purposes of this application, features include coverages,
terms, and rewards. Generally, a coverage provides a protection or
indemnification to the insured. A term includes any word, phrase,
or provision of import that determines the nature and scope of an
agreement, such as the coverage grant in an insurance coverage or
the premium charged. A reward may include a discount, credit, or
benefit provided to the insured upon the occurrence of a specified
event.
[0024] When a feature is not included in a group, that particular
feature is referred to as an "ala carte" feature. Ala carte
features refer to coverages, terms, and rewards that are selected
by the insured on an individual basis for inclusion in an insurance
product.
[0025] Features may be grouped together to form a package. For
example, the present invention may apply to an automobile insurance
product that comprises a package of features. One grouping of
features may form a value package for price conscious consumers,
another grouping may form a protection plus package providing
additional features, and yet another grouping may form a platinum
package including yet more additional features. An automobile
insurance product may also include a standard package that includes
coverages required by state law, such as bodily injury liability
coverage and property damage liability coverage. Coverages in a
standard package may also include personal injury protection
coverage, medical payment coverage, uninsured motorist coverage,
underinsured motorist coverage, collision coverage, and
comprehensive coverage.
[0026] Most states mandate minimum types and levels of insurance
coverage for automobile policies. For example, a state may require
liability coverage with mandated minimum coverage limits. States
can individually make common coverages mandatory or optional. Banks
or financial institutions may make other coverages, such as
collision and comprehensive, a prerequisite to obtain
financing.
[0027] An automobile insurance product offering might include
standard coverages required by state law and/or financial
institutions. Insurance companies may offer other coverages and
limits, such as towing reimbursement and car rental
reimbursement.
[0028] Automobile insurance consumers find value in optional
coverages designed around potential risks uniquely associated with
driving and or repairing of vehicles. For example, a car rental
reimbursement coverage may help pay for the use of a rented vehicle
while the insured vehicle is being repaired due to a loss caused by
a covered peril.
[0029] The following provides a summary of an exemplary basic
optimized package, two additional optimized packages, and various
exemplary ala carte features that may be added by a consumer to one
of the optimized packages. For example, a basic package might
include a reduced premium by adding in a few terms. It is designed
as an alternative for the customer particularly concerned about
price. In particular, a customer may be required to participate in
an arrangement that automatically makes periodic (for example,
monthly) deductions from the insured's savings or checking account
to pay the premium and other charges or fees associated with the
insurance. Customers will be charged an early termination fee (such
as $100) if the insurance is terminated by the insured, which might
include the insured's failure to accept a renewal offer, or
terminated for non-payment of premium, within a specified period of
time after the package is added.
[0030] Another optimized package might offer an accident-waiver
enhancement feature and a safe-driving-deductible reward feature.
The accident-waiver enhancement feature might specify that the
first rate-affecting accident that occurs will not cause the loss
of certain discounts or result in the application of any accident
surcharges. Subsequent rate-affecting accidents will not cause the
loss of the discounts or the application of any accident surcharges
if the insured has not received this waiver in the thirty-six month
experience period ending on the date of the accident.
[0031] The safe-driving deductible reward feature might provide,
upon enrollment, that the customer will receive an initial
reduction (such as $100) in his or her collision deductible. For
each twelve-month experience period the policy is not assigned an
accident, the insured will receive an additional reduction (up to a
maximum $500 reduction) in their collision deductible that will
apply to all covered collision claims during the next policy
period.
[0032] Yet another optimized package might offer an accident waiver
enhancement plus feature, a safe-driving deductible reward feature,
and a safe-driving bonus feature. With the accident-waiver
enhancement plus feature, neither a single accident nor multiple
accidents will cause the loss of certain discounts or the
application of accident surcharges as long as the accidents occur
while this feature is part of the policy. The safe-driving bonus
feature may provide if the policy is not assigned an accident for a
designated six-month experience period, the insured will receive 5%
of their previous term's premium for major coverages as a credit
that can be applied toward the next six-month premium.
[0033] Both the above-described exemplary optimized packages may
also allow the customer the opportunity to add, for an additional
premium, an additional feature in the form of a new car expanded
protection coverage feature on an automobile that has collision and
comprehensive coverages. The coverage provided by this feature will
continue while collision and comprehensive coverages are maintained
and will be removed at the first renewal that is effective in the
calendar year that is three years greater than the auto's model
year.
[0034] The new-car expanded protection coverage feature may provide
that, in the event of a covered loss to an automobile other than a
total loss, the insurance carrier will pay to repair the auto
without a deduction for depreciation. The repair coverage may not
apply to losses caused by fire, theft, larceny, or flood.
Furthermore, the amount payable will be reduced by any amounts paid
or payable under the collision or comprehensive coverages as well
as any applicable collision or comprehensive deductible.
[0035] The new-car expanded protection coverage feature may also
provide that, in the event of a covered total loss, the
insurance-carrier will pay to replace the automobile with a new one
of the same make and model with the same equipment or, if a new
automobile of the same make and model with the same equipment is
not available, a new automobile that is similar in size, class,
body type and equipment (subject to a price limitation described in
the coverage). The replacement coverage may not apply to leased
vehicles or to losses caused by fire, theft, larceny, or flood.
Furthermore, the amount payable will be reduced by any amounts paid
or payable under the collision or comprehensive coverages, any
applicable collision or comprehensive deductible, and the dollar
amount of any unrepaired damage that occurred prior to the total
loss of the automobile.
[0036] The new-car expanded protection coverage feature may also
provide that, in the event of a covered total loss, if the amount
the customer owes under the original automobile loan or automobile
lease exceeds the actual cash value of the automobile at the time
of loss, the insurance carrier will pay the difference between the
amounts. The amount payable may be reduced by any overdue loan or
lease payments (and any financial penalties associated with those
overdue payments), the transfer or rollover of a previous
outstanding loan or lease balance from another vehicle to the
original loan or lease for the covered automobile, the dollar
amount of unrepaired damage which occurred prior to the total loss,
all refunds paid or payable to the customer as a result of the
early termination of the automobile loan or automobile lease
agreement (including financed warranty/extended service contracts),
and any amount paid or payable under the replacement protection of
the new car expanded coverage protection feature.
[0037] In forming the above exemplary packages that are offered for
sale by an insurance carrier, one forming the package offerings
might decide to consider consumer "need states" to group features
into packages offered for sale. Need states refer to the complex
web of rational and subconscious triggers that prompt a consumer to
make a product selection. Need states may be prompted by a consumer
deciding that he or she needs or wants to obtain a product.
Furthermore, they are generally a result of an individual's
situation at a particular point in time. Life-stage events, such as
a new driver in the family, shift consumers' need states. Of
course, automobile insurance consumers may have varied
circumstances, and consequently, differing insurance needs and
wants. One may be a student with limited resources, and as a
result, might select state-mandated coverage. Another may be near
retirement and focused on protection of assets and convenience of
services.
[0038] Systems and methods consistent with the present invention
identify distinct groupings of insurance consumers with similar
need states and identify the most commonly desired optional
features that consumers might chose to help meet their needs.
Optional features are then combined by the system into optimized
packages of insurance products that are offered for sale to
consumers. By grouping features into packages that align with
common need states, the offered products will be attractive to
persons in need states that were considered when designing the
packages.
[0039] An "optimized package" includes a set of insurance features
that are packaged to help address the needs and wants of consumers
in a particular grouping. Ala carte features may also be optimized.
For example, ala carte features may be optimized by grouping
certain ala carte features together that share an attribute.
Accordingly, both optimized features and optimized ala carte
features include coverages, terms, and rewards selected from a
group that shares an attribute. The shared attribute allows the
features to be grouped around a common theme. For example, a value
grouping may include features designed around lower price. A
protection theme may include features optimized around protecting
assets. For the most part, features are grouped to share an
attribute, but features grouped around a common theme may also
include features that do not share the common theme or are based on
a regional theme.
[0040] In addition, packages may be grouped to form a "plan." A
plan refers to a grouping of a standard package with at least one
optimized package of features. A consumer may also add ala carte
features, or optimized ala carte features, to a plan on an
individual basis.
[0041] The process by which packages are designed may involve
consideration of market theories. When looking to a market, one
needs to identify the individuals that might decide to purchase a
product. A group of persons that may be interested in or share a
need for a particular product or products is defined as a target
population. Accordingly, the target population is the group to be
reached through some action or intervention and may refer to groups
with specific characteristics.
[0042] Market segmentation refers to the process of grouping
persons in a target population into smaller subgroups called market
segments. A market segment is a group within a heterogeneous market
consisting of consumers or organizations with relatively
homogeneous needs and wants. Consumers in a market segment are
expected to respond to a given set of marketing stimuli in a
similar manner. Ideally, individuals within a market segment will
likely have similar feelings about a marketing mix comprised of a
given product, sold at a given price, distributed in a certain way,
and promoted in a certain way. Accordingly, a market segment is a
more specifically defined group within the target population.
[0043] A target population or a market segment may share one or
more common characteristics that statistically describe the persons
within the target population or market segment. Characteristics may
include gender, age, occupation, marital status, and family
size.
[0044] To select features that might appeal to a particular target
population or market segment, features are grouped together along
marketing demand parameters. Groups of features are offered in
different product structures, which are discussed in further detail
below. Utility-based groupings maximize product acceptance of
product packages by statistically predicting consumer demand based
on multidimensional analysis of consumer motivations. These
motivations are then compiled through a demand simulator to
identify and target product requirements that may be attractive to
various segments of the consumer population. A demand simulator
measures overall demand potential as well as consumer preferences
for various product features and brands. By using a demand
simulator, it is possible to identify the features that consumers
might want most, and then measure the price they are willing to pay
for them. Demand simulators are discussed more fully below.
[0045] For example, certain features have more universal consumer
appeal while other features appeal to a specific consumer
characteristic. An optimization process creates focused sets of
features. The process may organize product packages around central
motivation factors, such as price points and common feature
acceptance. Using feature interest as a motivating factor, the most
popular features can be grouped to form a set of features that are
both universally popular and provide an acceptable profit to an
insurance carrier.
[0046] Differentiation is introduced by adding features to packages
that specifically address the motivations of a specific consumer
group. For example, some consumer groups are interested in security
features, while others may have young drivers in the household.
Because some consumers are highly driven by features while others
are driven by price, package structures may be optimized based on
price to motivate a consumer segment. Alternatively, package
structures may be optimized based on features that appeal to less
price-sensitive members of the consumer population. In addition,
some optimized package structures may be based upon both price and
feature considerations.
[0047] Insurance products generated according to the present
invention may be offered for sale in a variety of manners. For
example, consistent with the present invention, optimized packages
may be offered through any form of visual display, either
electronically or by the use of brochures, posters, signs, standing
displays, and any other form of visual and/or written
communication. In addition, one may offer optimized packages
through an insurance carrier's agents in person, over the
telephone, or via the Internet. In an Internet implementation, or
over the telephone using a voice recognition system, such
interactions may occur automatically.
[0048] Reference will now be made in detail to exemplary
embodiments of the invention, examples of which are illustrated in
the accompanying drawings. Wherever possible, the same reference
numbers will be used throughout the drawings to refer to the same
or like parts.
[0049] FIG. 1 is an exemplary flow chart 100 for optimizing
customizable insurance products. One may optimize insurance
products by designing packages using a process that takes into
account the considerations discussed in further detail below.
Furthermore, the process described with respect to FIG. 1 may be
implemented to determine packages for a variety of different types
of insurance products. For example, the methodology may apply to
automobile insurance, homeowners insurance, life insurance, and any
other appropriate type of insurance in keeping with the spirit and
scope of the present invention.
[0050] As shown in FIG. 1, first, features are identified as
candidates to be offered as part of various packages, which
together form an insurance product. Step 110. To identify those
features that one might consider as candidates, business
performance data may be analyzed. Business performance data may
include different subsets of data obtained by collecting existing
information from the marketplace to analyze for trends and to
understand the landscape of available options. A possible subset of
business performance data is market-share data, which includes
industry data used to evaluate current levels of market share for
particular consumers to determine demand generated by specific
product offerings. In this step of the process, one might identify
a target population and/or a market segment.
[0051] Other categories of data considered in this step include
industry-product- offering data and internal-pricing data.
Industry-product-offering data includes an evaluation of the
products and features offered in policies from various insurance
carriers. In addition, this data may be supplemented by internal
pricing data proprietary to the insurance carrier conducting the
demand simulation.
[0052] Internal-pricing data may include the insurance carrier's
premiums, loss, and expense data so that the cost of features can
be taken into account. Internal- pricing data allows one to compare
a specific insurance carrier's ability to provide a product to
consumers at a price consumers are willing to pay. Other ways of
arriving at candidate features include brainstorming with experts,
examining the current and past marketplace, and by soliciting and
receiving suggestions and input from consumers and agents.
[0053] Next, the cost of each candidate feature is determined. Step
120. In determining costs of the candidate features, the losses
that are expected for a particular feature are examined when
determining the premium that consumers will pay.
[0054] Once candidate features and costs are determined, the demand
for each feature in the marketplace is evaluated. Step 130. During
the evaluation, consumer preferences are evaluated to form price
utility curves, which are created after conducting consumer
research to better understand consumer preferences for each feature
or combination of features.
[0055] The process of evaluating demand may include collecting
information using focus groups selected from different geographic
regions. For example, persons participating in focus groups can be
selected across all age groups that have actively shopped for
insurance during an appropriate time frame. Selection of groups may
occur on the basis of any identified target population and/or
market segment. During this step, features may be eliminated from
further consideration based upon the focus groups' preferences. In
addition, focus groups may provide survey information identifying
the price each individual was willing to pay for certain features.
Such considerations may involve an evaluation of sample packages
containing different combinations of features offered at different
prices.
[0056] Next, features are grouped into possible packages. Step 140.
During this step, cost prohibitive features may be eliminated from
packages because consumers may not be willing to pay the price of a
particular feature. Also, strategic alternatives data may be
examined, including price-point data and variable-feature-level
data. Price point data includes an evaluation of a particular
insurance carrier's current prices to competitors' prices and
includes an evaluation of the impact of adding packaged features.
Variable feature level data may be considered to describe the most
compelling packages of features. Variable feature level data is
derived from consumer research and includes uniqueness and
differentiation of features to evaluate the best features and how
features should be grouped in packages.
[0057] In addition, incremental costs of strategic alternatives
data include variable-feature-cost data and fixed-cost-investments
data. Variable-feature-cost data describes an insurance carrier's
proprietary loss and expense data and is used to determine a cost
to offer a given feature. Fixed-cost investments data takes into
account systems, infrastructure, and other costs associated with
implementation of an optimized product architecture.
[0058] When designing packages, another concept that is
incorporated into the process is that of self-selection. For
example, packages should include features that appeal to consumers
in a particular need state such that these consumers will recognize
the value of a particular package and consider including it in
their insurance selections.
[0059] Next, demand is simulated using a demand simulator. Step
150. The demand simulator estimates the number of individuals that
will purchase a particular product offering. Optimization of
packages is accomplished by iteratively trying all possible package
combinations or by determining which features may be substituted
for other features in the most optimal packages to arrive at a set
of features that a consumer would find of value.
[0060] The demand simulator may be implemented as a software
module, which processes data provided to it. During the operation
of the demand simulator, user input may provide the ability to
select different features and to alter inputs to the module.
Consistent with the present invention, processing may also occur
automatically at the direction of optimization software including
automated logic.
[0061] Features that are used by the demand simulator may be
selected with utility-based product segmentation. As discussed
above, price-utility curve data may be used to determine packages.
A utility value for each feature may be determined through consumer
research to identify the features most attractive to the overall
target population as well as to subsets of the target population
that form market segments. Features are then grouped into packages,
and groups of packages form an insurance product.
[0062] After the demand simulator provides an initial processing of
features, a user may decide whether to simulate demand again. Step
160. If the user decides to stop, the process ends. If the user
decides to continue, the process goes to step 170. In step 170,
processing may be further refined by re-examining costs of packages
or by examining different feature combinations based on a
particular set of judgment criteria. For example, if the cost of
offering a particular package is high, it may be identified using
variable-feature-cost data and fixed-cost investment data, as
described above in connection with step 120.
[0063] After inspecting the costs, certain features may be removed
or added to packages. Step 180. User input may further provide the
ability to select different features and to alter inputs to the
module. The process then returns to simulate demand for the newly
modified packages. Step 150.
[0064] FIG. 2 shows an exemplary chart comparing feature relevance
and feature differentiation used to perform analysis used in
optimizing features for packages. By plotting the data as shown in
FIG. 2, it is possible to determine a feature set 205 that includes
features that are highly relevant and distinctive. Such a process
may be done for an entire population to arrive at feature set 205
and may also be done for sub-segments based on characteristics
common to the sub-segments to determine the packages that most
appeal to a particular group or subgroup.
[0065] Accordingly, research may be performed to identify a target
population and a set of insurance features desired by the target
population. The set of insurance features are bundled into an
insurance package. A cost of the insurance package may be
determined and the insurance package may be offered for sale.
[0066] Furthermore, the research to identify the insurance features
is carried out through an optimization process, as described above.
In some embodiments, the optimization process is based upon
consumer factors. In other embodiments, the optimization process is
based also upon financial criteria that provide the insurance
company with an acceptable profit. The research may also include
examining common characteristics of the target population or of a
market segment within the target population.
[0067] This procedure may be repeated for additional market
segments. A set of ala carte features may also be identified and a
cost for each of the ala carte features may also be identified,
along with determining corresponding prices for the ala carte
features and offering the ala carte features for sale at the
corresponding prices.
[0068] An optimized package includes a basic set of insurance
features and may be offered for sale along with the insurance
package. A standard package may include a set of insurance features
required by a governing law. Alternatively, a standard package may
also include a set of insurance features required by a financial
institution.
[0069] For example, an optimized package may additionally include a
set of insurance features created by performing research to
identify a target population or a market segment. Alternatively, a
standard package may also be combined with the optimized package to
form a plan. Sets of additional insurance features may also be
selected to form additional packages. Each plan may include a
standard package and an optimized package.
[0070] In addition, a third party may sell optimized packages
without a standard package. Such a situation might involve a third
party's sale of optimized packages as additions to an existing
insurance product. An insurance carrier has sold the existing
insurance product to a consumer, who has then gone to a third party
from which the consumer may obtain the optimized packages. The
optimized packages, however, may be created or selected consistent
with the principles of the present invention.
[0071] FIG. 3 is an exemplary method of selling insurance
consistent with the present invention. As shown in FIG. 3, a
consumer is offered a variety of options related to automobile
insurance. For example, a consumer may only want to purchase a
basic insurance product. That consumer may select a standard
package 308. Alternatively, the consumer may select a value plan
302, which includes a standard package 304 and a value package 306
with additional features.
[0072] However, if a consumer would like to purchase more than a
basic insurance product, the consumer may select from optimized
package group 310. FIG. 3 includes two exemplary optimized
packages: a protection plus plan 312 and a platinum plan 318.
Protection plus plan 312 includes a standard package 314 and a
protection plus package 316. Protection plus package 316 may
include features such as a repair/replace feature and a
loan/lease-gap coverage feature. Alternatively, the consumer may
select platinum plan 318, which includes a standard package 320 and
a platinum options package 322. Platinum options package 322 may
include features such as a repair/replace feature, a loan/lease-gap
coverage feature, a monetary death indemnity feature, and a full
roadside assistance feature.
[0073] In addition, the consumer may select from optimized ala
carte features 324. Optimized ala carte features 324 are individual
features sold separately as add-ons to certain optimized packages.
Optimized ala carte features 324 have been keyed as a group to
share an attribute. In addition, the consumer may also select from
a general group of ala carte features 326 that have not been
optimized. As shown in FIG. 3, there are many possible combinations
and variations from which a consumer may select to form an
insurance product.
[0074] FIG. 4 shows an exemplary insurance product comprising
packages selected from FIG. 3. The example shown in FIG. 4 displays
a possible selection that a consumer may make from the options
provided in FIG. 3 to form insurance product 402. Insurance product
402 includes protection plus plan 312, which includes standard
package 314 and protection plus package 316. In addition, insurance
product 402 includes several ala carte features labeled A, B, and
C, which may or may not be optimized.
[0075] FIG. 5 is another exemplary method of selling insurance
consistent with the present invention. In the method shown in FIG.
5, a consumer combines packages in a linear fashion to form an
insurance product. For example, the consumer selects a standard
package 502. Since standard package 502 meets the minimum
requirements for an insurance product, the consumer may decide only
to purchase standard package 502. However, the consumer may also
decide to select additional optimized packages from optimized
package group 504. For example, the consumer may also select
optimized options package 506, which is considered a "basic"
optimized package. In addition, however, the consumer may also
select optimized options package 508 and/or optimized options
package 510. These additional optimized packages are considered
"premium" packages because they offer additional features at a cost
greater than the basic optimized package. Furthermore, optimized
packages 506-510 may include features optimized in a manner
consistent with the present invention. In some embodiments, a
consumer may be required to first select, for example, a particular
optimized options package before the consumer may select a further
optimized package. Such a "tiered" arrangement requires the
purchase of an initial optimized package as a prerequisite before
additional optimized packages may be purchased.
[0076] Once the consumer has selected optimized options package 508
or optimized options package 510, the consumer may also select any
one or more optimized ala carte features 512. Additionally, a
consumer that has selected any one of optimized options packages
506-510 may also select one or more ala carte features 514. As
shown in FIG. 5, there are many possible combinations and
variations from which a consumer may select to form an insurance
product.
[0077] FIG. 6 shows an exemplary insurance product comprising
packages from FIG. 5. The example in FIG. 6 shows a possible
selection that a consumer may make to form insurance product 602.
Insurance product 602 includes standard package 502, optimized
package 506, and optimized package 508. In addition, insurance
product 602 includes several ala carte features A, B, and C, which
may or may not be optimized.
[0078] With regard to the example of automobile insurance, the
following provides an overview of exemplary packages that may be
made available to customers. For example, a "standard" package may
include an accident waiver feature after five years for eligible
customers. A "value" package may be provided at a reduced rate and
may require participation in a payment program. The payment program
may require premiums to be paid through an automatic deduction from
a checking or savings account, for example.
[0079] Additional packages may also be available that include more
features. A "gold protection" package may include an accident
waiver enhancement feature in the event of a first accident and a
safe driving deductible reward. A "platinum protection" package may
include an accident waiver enhancement plus feature in the event of
multiple accidents, a safe driving deductible reward feature, and a
safe driving bonus feature. Furthermore, a "new car expanded
protection" package may include all of the features included in the
"platinum protection" or "gold protection" packages. In addition,
the "new car expanded protection" package may include a repair or
replacement coverage feature and a loan or lease gap coverage
feature.
[0080] One of ordinary skill in the art will readily recognize how
to adapt the methodologies described above to a variety of areas of
insurance. For example, a homeowner's insurance product typically
covers a building or structure on the premises and household
personal property. A typical homeowner's insurance product usually
also includes certain personal liability coverage and coverage for
medical payments to others. Additional coverages or features are
purchased ala carte.
[0081] Consistent with the present invention, an insurance carrier
may expand its homeowner's insurance offerings to consumers by
identifying features with appeal and profitability to design
packages of related features at different pricing points.
Customizable homeowner's insurance may include a standard package
of typical coverages, and a consumer may further select optimized
packages of features in a manner similar to that discussed
above.
[0082] Homeowner's insurance consistent with the present invention
provides optional coverages that reflect different lifestyles and
life stage needs. In particular, by implementing a methodology
consistent with that described above in relation to automobile
insurance, one may also create optimized homeowner packages.
Optimized packages may include coverages that are popular with most
homeowners, as well as optimized coverages that align with the
wants and needs of a given consumer. Consistent with the invention,
consumers can be offered optimized packages of coverages and terms
that address the needs of those, for example, with a great deal of
electronics, or those with a great deal of jewelry, or those with a
particular liability concern.
[0083] The following provides examples of homeowners insurance
features that may be included in packages that are selected
according to the methods described above. For example, a home value
protection feature may more fully ensure that a home and valuables
are fully covered by automatically adjusting coverage levels to
account for the increasing cost to rebuild the home. An identity
theft coverage feature may provide coverage for specified expenses
that are incurred due to identity theft. A claims free discount
feature may provide a discount on the following year's premium for
each year in which the policyholder does not have a claim. A
blanket protection of valuables feature may allow a policyholder to
purchase a set amount of coverage for special valuables in
increments of $1,000, rather than scheduling individual items
separately. A limited personal umbrella policy provides additional
coverage in case of unexpected lawsuits. A water backup feature
offers protection in case a home is damaged due to flooding from
specified causes. An inventory and appraisal tool feature provides
tools available at a website, on a CD-ROM, or in a booklet, that
helps catalog and store a complete inventory of valuable items and
provides approximate values of itemized goods. One of skill in the
art will recognize that other features are consistent with
embodiments of the present invention.
[0084] FIG. 7 illustrates a system 700 consistent with the present
invention for implementing the methods discussed above. System 700
includes a server 705, connected to a network 760, including a CPU
720, a memory 730, and a database 740. Software loaded into memory
730 from, for example, a disk drive (not shown) at the direction of
CPU 720 may be used to implement a program for optimizing
automobile insurance in a manner consistent with the present
invention. For example, the software may execute instructions for
performing demand simulation to analyze data and to form optimized
packages. Memory 730 and/or database 740 may store market data and
research conducted to design packages. Database 740 may also
include information such as customer profiles, which are discussed
more fully below.
[0085] Additionally, network 760 provides communications between
the various entities in system 700, such as user terminals 770-790.
Network 760 may be a shared, public, or private network and
encompass a wide area or local area. Further, network 760 may be
implemented through any suitable combination of wired and/or
wireless communication networks. By way of example, network 760 may
be implemented through a wide area network (WAN), local area
network (LAN), an intranet, or the Internet.
[0086] Terminals 770-790 allow a user to exchange information with
server 760. Terminals 770-790 may be any type of appropriate device
for communicating with server 705 over network 760. For example,
terminal 770 may be a PDA running a program for communicating with
server 705, while terminal 780 may be a desktop type computer
running a web browser for communicating with server 705 via the
Internet. Terminal 790 may be a standard landline telephone or
wireless phone.
[0087] Users may access server 705 via network 760 to customize an
automobile insurance product through a web browser running on, for
example, terminal 780. A website may include options for the user
to provide information or to fill out an application, and may
present the user with a series of screens prompting the user to
make various selections. The user may make appropriate selections
to customize the insurance product. For example, a customer at
terminal 790, a telephone, may contact a customer service
representative at terminal 750. The customer service representative
may assist a customer through a process of providing information
and asking a series of questions that help the customer to consider
options for customizing an insurance product. During the process,
the customer service representative may use software running on
terminal 750, and may send data to and from server 705 over network
760.
[0088] Server 705 may also interact with a customer to determine
insurance features to include for the customer's consideration in
an insurance package. Customers may further modify or reject
presented insurance packages and may also select insurance packages
and/or features from other offerings. To determine insurance
features to include in an insurance package, server 705 may use
database 740 to access customer profiles, or may access customer
profiles over network 760. In other embodiments consistent with the
present invention, server 705 may access customer profiles over
network 760. Further, customer profiles may be updated by a
customer service representative at terminal 750, who collects data
from a customer and transmits the data over network 760 to server
705. In other embodiments, data may be transmitted from a customer
at one of terminals 770-790 over network 760 in response to survey
questions and/or as a result of selections that a customer makes
after supplying identification information to log into an account.
Server 750 may access database 740 to retrieve existing data
already collected that pertains to customers.
[0089] Customer profiles may include, for example, data identifying
a customer, data identifying a customer's automobiles, data
pertaining to other property belonging to a customer, and/or data
describing a customer's preferences. Data identifying a customer
may include information such as a customer's name, address, age,
and marital status. Data identifying a customer's automobiles may
specify the number owned, as well as each automobile's make, model,
and year. Data pertaining to other property belonging to a customer
may include information about homes, jewelry, artwork, and other
possessions. Data describing a customer's preferences may be
collected through various surveys, both from electronically
collected information and information collected from surveys sent
via mail. Customer preferences may indicate preferred insurance
features, target costs, and preferred mode of customer service
contact, such as whether a customer prefers to be connected by
telephone or electronic mail. Customer profiles may also include
information collected from a customer that specifies a customer's
risk tolerance.
[0090] Referring now to FIG. 8, an exemplary flow chart 800 is
provided for presenting insurance packages to a customer for the
customer's consideration. One or more of the insurance packages
that are presented for the customer's consideration may be based
upon a customer profile in one embodiment of the present invention.
A customer at, for example, one of terminals 770-790, may navigate
using an Internet browser to a website for an insurance company. At
the website, the customer may log into an existing account or
create a new account by providing, for example, a name and a
password. Step 810. In other embodiments, a customer may not need
to create an account or log into an account, but may instead
provide identification information to begin the process, such as
the customer's name.
[0091] Next, in step 820, CPU 720 may access a customer profile
stored in, for example, database 740, which is associated with the
customer that supplied identification information at the website.
As discussed above, customer profile may include a variety of data
concerning the customer. In step 830, CPU 720 may identify profiles
for other customers that include data in common with the data
included in the profile of the customer. For example, if the
customer owns a particular make and model of automobile, CPU 720
may identify profiles of other customers that own the same
automobile.
[0092] Next, in step 840, CPU 720 determines an insurance package
to present to the customer for consideration based upon a
comparison of the customer's profile and the identified profiles.
For example, this step may include presenting an insurance package
to the customer that was selected by one or more customers
associated with identified profiles. Further, the process may
involve determining which insurance package was selected by a
majority of customers having certain characteristics in common with
the customer. A customer may be presented for consideration, in one
example, an insurance package that was selected by a majority of
customers that own the same automobile make and model. In such an
example, the presentation of the insurance package may be
accompanied by a message to the customer. The message may state,
for example, "You may be interested in the following package, which
was selected by other customers that own your type of automobile."
Insurance packages that are presented to a customer for
consideration may be selected by CPU 720 from a comprehensive
database connected to network 760 and/or from database 740 included
in server 705, for example. Furthermore, multiple processors (not
shown) may be used by server 705 to implement parallel processing
to rapidly process large volumes of data, including customer
profiles, when selecting presented insurance features and/or
insurance packages. Customers may further modify or reject
presented insurance packages and may also select insurance packages
and/or features from other offerings. One of ordinary skill in the
art will recognize that the number of characteristics in common, as
well as the characteristics to consider when making the comparison
may vary. Accordingly, one of ordinary skill in the art will
appreciate that many variations are possible and consistent with
the spirit and scope of the present invention.
[0093] Once an insurance package is selected, server 705 may
transmit the insurance package over network 760 to a customer at
one of terminals 770-790. The details concerning the insurance
package, including the particular insurance features included in
the package, are then displayed to the customer for the customer's
consideration on one of terminals 770-790. Furthermore, an
insurance package is presented for the customer's consideration so
that the customer may ultimately consider whether the insurance
best suits the customer's needs. A customer may further be provided
with a message encouraging the customer to consider other
alternatives and evaluate whether the presented insurance package
meets the customer's needs.
[0094] In some situations, a customer may prefer to speak with a
customer service representative during the process. A customer may
be provided with a telephone number at any point in the process to
review insurance packages and/or features and speak with a customer
service representative. Furthermore, periodically, a message may be
displayed to the customer asking whether the customer would like to
engage in a live chat session with a customer service
representative. Alternatively, an option may be made available on
the customer's display so that the customer may, when desired,
initiate a live Internet chat session with a customer service
representative. During the Internet chat session, a customer
service representative and a customer may exchange text messages.
For example, consistent with the system shown in FIG. 7, a customer
may have a question about an insurance package or feature. The
customer may compose a text message, which may be transmitted from
the customer at, for example, terminal 770 over network 760 to a
customer service representative at terminal 750. The customer
service representative may respond with a text message transmitted
from terminal 750 to terminal 770. Accordingly, during the chat
session, the customer may resolve questions pertaining to presented
insurance packages and/or features.
[0095] Additionally, customers may further modify or reject
presented insurance packages and may also select insurance packages
and/or features from other offerings. For example, server 705 may
receive an indication from the customer specifying whether the
customer would like to modify or reject the presented insurance
package, according to step 850. In step 850, the customer receives
a message at one of terminals 770-790 presenting the customer with
additional information regarding other available packages and
features and prompting the customer to indicate whether the
customer would like to modify or reject the presented insurance
package and features. If the customer does not wish to modify or
reject the presented insurance package and features, the process
ends.
[0096] If the customer would like to modify or reject the presented
insurance package, server 705 may present a substitute or
additional insurance feature that may be included in the insurance
package that is presented. Step 860. Customers may further modify
or reject presented insurance packages and may also select
insurance packages or features from other offerings. In this step,
server 705 may present a substitute insurance feature based on the
customer profile for the customer's consideration, which may be
exchanged for an insurance feature already included in the
insurance package. Alternatively, server 705 may present an
additional insurance feature based on the customer profile for the
customer's consideration, which may be added to the insurance
package. In other embodiments, the substitute or additional
insurance feature may be selected based upon an analysis of the
identified profiles of customers having characteristics in common
with the customer and presented for the customer's consideration.
Further, the substitute or additional insurance feature that is
presented for consideration may be selected based upon an analysis
of market research saved in database 740. For example, market
research previously collected for a target population may indicate
preferences of individuals falling within the target population.
The customer profile may therefore be used to identify whether a
particular customer is or is not a member of a particular target
population. Still further, the substitute or additional insurance
feature may be selected by the customer. For example, the customer
may specify a desired insurance feature or select an insurance
feature from a list of all available features.
[0097] In step 870, the customer may decide whether to modify the
presented insurance package to include an additional insurance
feature or to substitute an insurance feature. Next, if the
customer makes a change in the insurance package, in step 880,
server 705 modifies the insurance package to include the additional
insurance feature or to substitute an insurance feature. A customer
may also change the insurance package by removing one or more
insurance features. If the customer does not want to include,
substitute, or remove an insurance feature, the process ends.
[0098] The above method allows a customer to adapt an insurance
package to the customer's needs with insurance features that server
705 presents to the customer for consideration. Further, once a
customer has been provided an insurance package for consideration,
the customer may replace, reject, and/or add other available
insurance features as the customer deems necessary. One of ordinary
skill in the art will recognize that the above process may
iteratively allow a customer to refine the insurance package by
substituting, removing, and adding features until a desired package
is arrived at that the customer believes best suits his or her
needs. Additional or substitute insurance features that are
presented to the customer for consideration as part of an insurance
package may be based on a profile of the customer, other customer
profiles, or market research, for example.
[0099] As discussed herein, personal automobile and homeowners
insurance are examples of property and casualty insurance
offerings. One skilled in the art will recognize that the
above-described methodology is applicable to other types of
insurance products as well, such as commercial insurance for
business customers. In addition, an insurance carrier may offer
annuity products to consumers for retirement or financial planning
purposes by identifying features with appeal and profitability to
design packages of related features at different pricing points or
expense levels. Customizable annuity products may include a
standard annuity with typical accumulation, return, and payout
features. A consumer may further select enhanced packages of
features in a manner similar to that discussed above for automobile
insurance.
[0100] Additional embodiments of the present invention are
possible, each designed to cover other classes of insurable risk,
including but not limited to, mortality risk and life insurance
products; morbidity risk and health and long-term care insurance
products; as well as professional practice risk and liability
insurance.
[0101] Although not common in today's marketplace, it is possible
to apply the disclosed methodologies to so-called hybrid or
multi-risk products that combine the coverages of two or more
products from different classes of insurance risk into a single
product. Customizable hybrid products may include a standard
package across two or more risk classes with typical features in
each class and a consumer may further select enhanced packages of
features in a manner similar to that discussed above for automobile
insurance.
[0102] The foregoing descriptions of the invention have been
presented for purposes of illustration and description. They are
not exhaustive and do not limit the invention to the precise form
disclosed. Modifications and variations are possible in light of
the above teachings or may be acquired from practicing of the
invention. For example, the described implementation includes
software but the present invention may be implemented as a
combination of hardware and software or in hardware alone.
Additionally, although aspects of the present invention are
described as being stored in memory, one skilled in the art will
appreciate that these aspects can also be stored on other types of
computer-readable media, such as secondary storage devices, like
hard disks, floppy disks, or CD-ROM; a carrier wave from the
Internet or other propagation medium; or other forms of RAM or ROM.
The scope of the invention is defined by the claims and their
equivalents. Accordingly, other embodiments of the invention will
be apparent to those skilled in the art from consideration of the
specification and practice of the invention disclosed herein. The
specification and examples should be considered as exemplary only,
with a true scope and spirit of the invention being indicated by
the following claims.
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