Patent ID: 8688478
Filing Date: 2014-04-01
Classification: G06Q

Abstract:
1. A computer-based system for calculating an estimated risk premium for reinsurance of a cedent's insurance policies covering loss event related fatalities and disabilities, comprising: means for storing for a first type of market scenario, representative of a relatively small, first type of loss event for a defined insurance market, a frequency of the first type of loss event and a number of insured individuals involved in the first type of loss event; means for storing for a second type of market scenario, representative of a relatively big, second type of loss event for the market, a frequency of the second type of loss event and a number of insured individuals involved in the second type of loss event; means for calculating a first individual scenario, indicative of the cedent's exposure to the first type of loss event, based on the first type of market scenario; means for calculating a second individual scenario, indicative of the cedent's exposure to the second type of loss event, based on the second type of market scenario; means for calculating a first set of loss event frequencies, based on a combination of the first type of market scenario and the second type of market scenario, by number of individuals insured by the cedent and involved in a loss event, using a standard distribution for the number of insured individuals involved in the loss event and using the first individual scenario and the second individual scenario as interpolation points; and means for calculating the estimated risk premium from the first set of loss event frequencies and from severity data.