Patent ID: 7827046
Filing Date: 2010-11-02
Classification: G06Q

Abstract:
1. A computer implemented method for transitioning a block of insureds from a first rating algorithm A to a second rating algorithm B, said block of insureds comprising one or more insured drivers, said method comprising: a) receiving by said computer a length of transition period n b) calculating by said computer a premium for each one of said insured drivers, said premium being for a given term n during said transition period wherein said premium is greater than or equal to the premium Pt  wherein; c) outputting said premium to an insurance agent offering said insurance to said insured driver wherein Tf n is chosen such that the change in said premium Pt n from the prior premium Pt (n-1) is a normal change in premium for the majority of said insured drivers and wherein said transition factor Tf n is given by the equation: where W is a shape parameter in the range of ½ to 2.