Patent ID: 8315891
Filing Date: 2012-11-20
Classification: G06Q

Abstract:
1. A method of evaluating a plurality of insurance products, comprising: providing a computer system with a database of product information for the plurality of insurance products; receiving, by the computer system, data corresponding to a customer and a proposed customer policy; generating a proposed policy for each of the plurality of insurance products by running the data for the customer and the proposed customer policy through the computer system; identifying, by the computer system, a set of values for at least one of premium, death benefit, and cash value for each year for the proposed policy; calculating, by the computer system, a series of cash flows for the proposed policy by applying a decrement factor to the set of values, including at least one of a first decrement factor representing a probability of a customer's death, a second decrement factor representing a probably of a customer's lapse, and a third decrement factor representing a probability of a customer's persistence; calculating, by the computer system, an internal rate of return for the proposed policy from the series of cash flows, and a statistical distribution of a plurality of internal rate of returns of a proposed policy for the plurality of insurance products; determining a value for a quantitative scoring component for the proposed policy based on a comparison of the internal rate of return for the proposed policy to the statistical distribution of the plurality of internal rate of returns of the plurality of proposed policies; and scoring the proposed policy by combining a plurality of values for each of a plurality of scoring components, the plurality of scoring components including the quantitative scoring component, to obtain an overall score for the proposed policy.