Patent ID: 8069064
Filing Date: 2011-11-29
Classification: G06Q

Abstract:
1. A method of determining a benchmark premium for an insurance policy for a company, comprising: determining, by a computer comprising at least one processor, a class action lawsuit frequency distribution for the company; determining, by the computer, a class action lawsuit severity distribution for the company based on likely costs associated with disposing of the class action lawsuit; determining, by the computer, a non-class action lawsuit loss distribution based on at least one of a history of non-class action lawsuit losses of the company, a history of non-class action lawsuit losses of a plurality of companies in a common industry sector as the company, a history of non-class action lawsuit losses of a plurality of companies having market capitalizations similar to that of the company, and a market-wide history of non-class action lawsuit losses; determining, by the computer, a risk load corresponding to the insurance policy for the company; and determining, by the computer, the benchmark premium for the company based on the class action lawsuit frequency distribution, the class action lawsuit severity distribution, and the non-class action lawsuit loss distribution, in combination with the risk load.