# Patent

## Title
Feedback loop linked models for interface generation

## Abstract

The invention relates to a system for handling insurance requests, such as new coverage applications, renewal applications, and insurance quote requests. The system includes at least two computerized predictive models whose outputs each serve as inputs to the other. A business logic module is included in the system to process insurance requests with the predictive models to determine one or more sets of recommended policy parameters for the user and to output the determination to the user via a user interface. In various embodiments, the predictive models also output workflow components (such as underwriting workflow components) and price components (such as premium prices) corresponding to output suggested sets of coverage parameters.

## Background
CROSS-REFERENCE RELATED APPLICATIONS
This application is a continuation of U.S. patent application Ser. No. 11/961,380 filed on Dec. 20, 2007, which claims the benefit of U.S. Provisional Application Ser. No. 60/876,684, filed Dec. 22, 2006, the entire contents of each of which are incorporated herein by reference.


FIELD OF THE INVENTION
In general, the invention relates to the field of computerized predictive models and their use for intelligent decision making. More specifically, the invention relates to predictive models in which outputs of predictive models serve as inputs to one another to form a predictive feedback loop and methods for using such models.
BACKGROUND OF THE INVENTION
Effectively identifying appropriate insurance coverages for a particular customer requires skill and experience developed over years of practice. Those having such skill are limited in number and thus provide only limited bandwidth to insurers. These limitations make it difficult for a customer to obtain coverage guidance in a real-time fashion on demand. Thus, a need exists in the art for a computerized system capable of identifying appropriate coverages for customers with reduced need for expert human interaction.
Moreover, many requests for insurance are relatively routine. Expending underwriter energy on evaluating such requests presents a burden on insurance companies with limited underwriting bandwidth and slows the process for customers of obtaining insurance and insurance quotes. Thus, a need exists in the art for a system to identify insurance requests that can be handled with no or reduced human underwriter involvement.
SUMMARY OF THE INVENTION
Accordingly, in one aspect, the invention relates to a system for handling insurance requests, such as new coverage applications, renewal applications, and insurance quote requests. The system includes a user interface for accepting data related to an insurance request from a user. The system also includes at least two computerized predictive models whose outputs each serve as inputs to the other. A business logic module is included in the system to process the accepted data by the predictive models to determine one or more sets of recommended policy parameters for the user and to output the determination to the user via the user interface. In various embodiments, the predictive models also output workflow components (such as underwriting workflow components) and price components (such as premium prices) corresponding to output suggested sets of coverage parameters.
In one embodiment, the system includes a data capture module that extracts input parameters from a variety of data sources for the predictive models. Suitable data sources include third party data sources, providers of telematics data, and unstructured text, which can be mined using a text mining engine and/or an information extraction engine.
In another embodiment, the business logic module of the system includes a rule engine configured to identify parameters for computerized predictive models for which additional data would improve their performance. The identified parameters are then output to the data capture module and/or the user interface.
According to another aspect, the invention relates to a method for handling an insurance request. The method includes accepting data related to an insurance request from a user via a user interface. A business logic module then processes the accepted data to determine a recommended set of policy parameters for an insured by executing first and second predictive models based on the accepted data. At least one output of the first predictive model serves as an input parameter to the second computerized predictive model and at least one output of the second computerized predictive model serves as an input to the first computerized model. The method also includes outputting, by the business logic module, the recommended set of policy parameters to the user via the user interface.
According to a third aspect, the invention relates to a computer readable medium storing computer readable instructions, which, when executed by a processor, cause the processor to carry out the method and system functionality described above.



BRIEF DESCRIPTION OF THE DRAWINGS
The foregoing discussion will be understood more readily from the following detailed description of the invention with reference to the following figures.
FIG. 1 is a block diagram of a system for processing insurance requests, according to an illustrative embodiment of the invention.
FIG. 2 is a block diagram of a computer architecture suitable for implementing various computing devices depicted in the system of FIG. 1.
FIG. 3 is a functional block diagram of a system for insurance request handling, according to an illustrative embodiment of the invention.
FIG. 4 is a block diagram of a business logic module, depicted in FIG. 3, according to an illustrative embodiment of the invention.
FIG. 5 is an illustrative screen shot of the output of the business logic module of FIG. 4.
FIG. 6 is a block diagram of a data capture module of FIG. 3, according to an illustrative embodiment of the invention.
FIG. 7 is a flow chart of a method for handling an insurance request, according to an illustrative embodiment of the invention.



DETAILED DESCRIPTION OF AN ILLUSTRATIVE EMBODIMENT
To provide an overall understanding of the invention, certain illustrative embodiments will now be described. However, it will be understood by one of ordinary skill in the art that the systems and methods described herein may be adapted and modified as is appropriate for the application being addressed and that the systems and methods described herein may be employed in other suitable applications, and that such other additions and modifications will not depart from the scope hereof.
FIG. 1 is a block diagram of a system 100 for processing insurance requests, according to an illustrative embodiment of the invention. The term “insurance request”, as used herein, shall refer to a request from an insurance customer or an insurance agent for an insurance quote, a new insurance policy, or a renewal insurance policy. The insurance customer may be an individual seeking personal lines insurance (e.g., life insurance, home owners insurance, automobile insurance) or a business seeking commercial insurance coverage (e.g., property and casualty insurance, umbrella insurance policies, directors and officers insurance, etc.), medical insurance, and/or workers compensation insurance. In particular, the methods and systems described herein are particularly well suited for, but are not limited to, handling the insurance needs of small businesses.
System 100 includes an insurance carrier system 102 in communication with user systems 104 and 106 and data sources 108 and 110. User system 104 is an agent system operated by an insurance agent. User system 106 is a customer system operated by an insurance customer. Data sources 108 are third party sources of data, including, for example, government entities (such as departments of motor vehicles, federal and state census bureaus, and meteorological services), private data vendors, news sources, and credit bureaus. Using such sources, the insurance system 102 may obtain census information, motor vehicle registration and driver information, weather information, property information (such as construction type, construction date, etc.), crime rates, credit histories, financial information, etc. The data may be aggregated data for geographies, industries, or demographics, or it might be specific to current or prospective customers. For example, the third party data may include, without limitation, information about company size, finances, and industry. Illustrative third party text documents include news stories, product information, analyst reports, and documents related to medical treatments, including devices, procedures, and agents.
Data sources 110 are sources of telematics data, i.e., data derived from sensors monitoring property to be insured. The telematics data sources 110 may include monitoring services engaged to monitor property of an insurance customer, systems operated by the insurance customer to monitor the sensors, and sensors that directly output to the insurance carrier system 102. For example, sensor may monitor the condition and/or use of individual or fleets of vehicles, insured property, and goods, or the condition and/or location of individuals. For example, with respect to automobile insurance, telematics data may include, without limitation, speed, location, acceleration, deceleration, environmental conditions (e.g., presence of icy roads or precipitation), tire pressure, and engine use time. For insured structures, the data may include, without limitation, temperature, humidity, alarm system status, smoke alarm status, and air quality. For individuals, telematics data might include, without limitation, blood pressure and pulse. For insured goods, the data may include, without limitation, the location of the goods, data related to the handling of the goods, and data related to environment surrounding the goods.
The insurance carrier system 102 communicates with the user systems 104 and 106 and the data sources 108 and 110 over one or a combination of communication networks 112. The communication networks 112 may be wired, wireless, or a combination thereof. They may be publicly accessible, such as the Internet, or part of a private communications network. Preferably, communications over the communication networks 112 are encrypted to protect the privacy of insurance customers.
The user systems 104 and 106 may be any computing device known in the art, such as a desktop computer, laptop computer, or personal digital assistant capable of networked communication and having a microprocessor capable of executing the user interfaces described herein. In particular, the user systems 104 and 106 include software for providing a user interface to the respective agent or insurance customer. For the agent system 104, the software may include a thin or thick client, or it may take the form of browser executable code for providing a user interface via a standard Internet browser software application. For the insurance customer system 106, the software preferably takes the form of browser executable code for providing a user interface via a standard Internet browser software application. The user interfaces provided by the user systems 104 and 106 are described further below. In addition to communicating with agent systems 104 and user systems 106, the insurance system 102 may also received insurance requests from insurance aggregators, brokers, an e-agent interface and/or Internet portals intended for identifying insurance coverage for customers. In some embodiments, these alternative providers of an insurance requests are associated with one or more agents.
The insurance carrier system 102 includes a plurality of application servers 114, a plurality of load balancing proxy servers 116, a data warehouse 118, a business logic processor 120, and one or more carrier terminals 122. These computing devices are connected by a local area network 124.
The application servers 114 are responsible for interacting with the user systems 104 and 106. For example, the application servers 114 include software for generating web pages for communication to the user systems 104 and 106. These web pages serve as user interfaces for the insurance agent and insurance customer, respectively, to interact with the insurance carrier system 102. Alternatively, or in addition, one or more of the application servers 114 may be configured to communicate with thin or thick clients operating on the agent system 104. The load balancing proxy servers 116 operate to distribute the load among application servers 114.
The data warehouse 118 is the main electronic depository of the insurance company's current and historical data. The data warehouse 118 includes one or more interrelated databases that store information relevant to insurance data analysis. The interrelated databases store both structured and unstructured data. In one implementation, one or more of the interrelated databases store electronic copies of insurance forms, either in an image format or a text-searchable format keyed to a customer or claim. Other forms of unstructured data stored in the data warehouse 118 include, without limitation, audio files storing insurance customer telephone conversations, transcripts of such conversations, image files, e.g., documenting the condition of insured property, and video files. Other databases in the interrelated databases store data, for example, in a relational database, in various data fields keyed to various identifiers, such as, without limitation, customer, data source, geography, or business identifier (such as Standard Industry Classification Code). The information stored in the data warehouse 118 is obtained through communications with customers, agents, vendors, and third party data providers and investigators.
The business logic processor 120 includes one or more computing devices tasked with carrying out the primary insurance decision analyses carried out by the insurance company. In particular, the business logic processor 120 is configured to make suggestions of policy parameters to potential customers and current customers seeking new coverage or renewal of existing coverage. The business logic processor 120 is further configured to determine a workflow to be followed by the insurance company to evaluate the customer for such coverage, and to determine a corresponding price. These determinations are preferably made using one or more computerized predictive models. The business logic processor 120 is described further in relation to FIGS. 3-6.
The insurance carrier terminals 122 provide various user interfaces to insurance carrier employees to interact with the business logic processor 120. The interfaces include, without limitation, interfaces to add new insurance coverages and coverage options to the insurance carrier system 102 and to adjust the predictive models utilized by the business logic processor 120. Such interfaces may be integrated into one or more websites for managing the insurance carrier system 102 presented by the application servers 114, or they may be integrated into thin or thick software clients. The carrier terminals 122 can be any computing devices suitable for carrying out the processes described above, including personal computers, lap top computers, personal digital computers, and other computing devices with general purpose processors.
FIG. 2 is a block diagram of a computer architecture 200 suitable for implementing various computing devices 201 incorporated into the system 100, including, for example, the application servers 114 and the business logic processor 120.
Computing device 201 comprises at least one central processing unit (CPU) 202, at least one read-only memory (ROM) 203, at least one communication port or hub 204, at least one random access memory (RAM) 205, and one or more databases or data storage devices 206. All of these later elements are in communication with the CPU 202 to facilitate the operation of the computing device 201. The computing device 201 may be configured in many different ways. For example, computing device 201 may be a conventional standalone server computer or alternatively, the function of server may be distributed across multiple computing systems and architectures.
Computing device 201 may be configured in a distributed architecture, wherein databases and processors are housed in separate units or locations. Some such servers perform primary processing functions and contain at a minimum, a general controller or a processor 202, a ROM 203, and a RAM 205. In such an embodiment, each of these servers is attached to a communications hub or port 204 that serves as a primary communication link with other servers 207, client or user computers 208 and other related devices 209. The communications hub or port 204 may have minimal processing capability itself, serving primarily as a communications router. A variety of communications protocols may be part of the system, including but not limited to: Ethernet, SAP, SASTM, ATP, BLUETOOTHTM, GSM and TCP/IP.
The CPU 202 comprises a processor, such as one or more conventional microprocessors and one or more supplementary co-processors such as math co-processors. The CPU 202 is in communication with the communication port 204 through which the CPU 202 communicates with other devices such as other servers 207, user terminals 208, or devices 209. The communication port 204 may include multiple communication channels for simultaneous communication with, for example, other processors, servers or client terminals. Devices in communication with each other need not be continually transmitting to each other. On the contrary, such devices need only transmit to each other as necessary, may actually refrain from exchanging data most of the time, and may require several steps to be performed to establish a communication link between the devices.
The CPU 202 is also in communication with the data storage device 206. The data storage device 206 may comprise an appropriate combination of magnetic, optical and/or semiconductor memory, and may include, for example, RAM, ROM, flash drive, an optical disc such as a compact disc and/or a hard disk or drive. The CPU 202 and the data storage device 206 each may be, for example, located entirely within a single computer or other computing device; or connected to each other by a communication medium, such as a USB port, serial port cable, a coaxial cable, a Ethernet type cable, a telephone line, a radio frequency transceiver or other similar wireless or wired medium or combination of the foregoing. For example, the CPU 202 may be connected to the data storage device 206 via the communication port 204.
The data storage device 206 may store, for example, (i) a program (e.g., computer program code and/or a computer program product) adapted to direct the CPU 202 in accordance with the present invention, and particularly in accordance with the processes described in detail hereinafter with regard to the CPU 202; (ii) databases adapted to store information that may be utilized to store information required by the program. Suitable databases include data warehouse 118 of FIG. 1.
The program may be stored, for example, in a compressed, an uncompiled and/or an encrypted format, and may include computer program code. The instructions of the program may be read into a main memory of the processor from a computer-readable medium other than the data storage device 206, such as from a ROM 203 or from a RAM 205. While execution of sequences of instructions in the program causes the processor 202 to perform the process steps described herein, hard-wired circuitry may be used in place of, or in combination with, software instructions for implementation of the processes of the present invention. Thus, embodiments of the present invention are not limited to any specific combination of hardware and software.
Suitable computer program code may be provided for performing numerous functions such as responding to insurance requests, including suggesting insurance policy coverage parameters, calculating a corresponding premium price, and determining a corresponding workflow component for processing the insurance request using the suggested parameters. The program also may include program elements such as an operating system, a database management system and “device drivers” that allow the processor to interface with computer peripheral devices (e.g., a video display, a keyboard, a computer mouse, etc.).
The term “computer-readable medium” as used herein refers to any medium that provides or participates in providing instructions to the processor of the computing device (or any other processor of a device described herein) for execution. Such a medium may take many forms, including but not limited to, non-volatile media and volatile media. Non-volatile media include, for example, optical, magnetic, or opto-magnetic disks, such as memory. Volatile media include dynamic random access memory (DRAM), which typically constitutes the main memory. Common forms of computer-readable media include, for example, a floppy disk, a flexible disk, hard disk, magnetic tape, any other magnetic medium, a CD-ROM, DVD, any other optical medium, punch cards, paper tape, any other physical medium with patterns of holes, a RAM, a PROM, an EPROM or EEPROM (electronically erasable programmable read-only memory), a FLASH-EEPROM, any other memory chip or cartridge, or any other medium from which a computer can read.
Various forms of computer readable media may be involved in carrying one or more sequences of one or more instructions to the processor 202 (or any other processor of a device described herein) for execution. For example, the instructions may initially be borne on a magnetic disk of a remote computer 208. The remote computer 208 can load the instructions into its dynamic memory and send the instructions over an Ethernet connection, cable line, or even telephone line using a modem. A communications device 204 local to a computing device (or, e.g., a server) can receive the data on the respective communications line and place the data on a system bus for the processor. The system bus carries the data to main memory, from which the processor retrieves and executes the instructions. The instructions received by main memory may optionally be stored in memory either before or after execution by the processor. In addition, instructions may be received via a communication port as electrical, electromagnetic or optical signals, which are exemplary forms of wireless communications or data streams that carry various types of information.
As previously discussed with reference to FIG. 1, servers may also interact and/or control one or more user devices 209, such as displays and printers, or remote computers 208 such as, agent system 104, customer system 106, and carrier terminals 122. These systems and terminals may include any one or a combination of a personal computer, a laptop, a personal digital assistant, a mouse, a keyboard, a computer display, a touch screen, LCD, voice recognition software, or other input/output devices required to implement the above functionality.
FIG. 3 is a functional block diagram of a system for insurance request handling 300, according to an illustrative embodiment of the invention. The system 300 includes a business logic module 302 (described further in FIG. 4) for determining one or more suggested sets of coverage parameters to present to a user that enters an insurance request via a user interface 304. The business logic module 302 is also configured to determine a corresponding price and underwriting workflow for the sets of suggested policy parameters. A data capture module 306 (described further in relation to FIG. 6) manages the process of obtaining data for the business logic module 302 from the user interface 304, third party data sources 308 (e.g., data sources 108), sources of telematics sensor data 310 (e.g., data sources 110), and a data warehouse 312 (e.g., data warehouse 118) of the insurance company.
As used herein, a “module” may be implemented in software for execution by various types of processors. An identified module of executable code may, for instance, comprise one or more physical or logical blocks of computer instructions which may, for instance, be organized as an object, procedure, or function. Nevertheless, the executables of an identified module need not be physically located together, but may comprise disparate instructions stored in different locations which, when joined logically together, comprise the module and achieve the stated purpose for the module.
Indeed, a module of executable code could be a single instruction, or many instructions, and may even be distributed over several different code segments, among different programs, and across several memory devices. Similarly, operational data may be identified and illustrated herein within modules, and may be embodied in any suitable form and organized within any suitable type of data structure. The operational data may be collected as a single data set, or may be distributed over different locations including over different storage devices, and may exist, at least partially, merely as electronic signals on a system or network. In addition, entire modules, or portions thereof, may also be implemented in programmable hardware devices such as field programmable gate arrays, programmable array logic, programmable logic devices or the like or as hardwired integrated circuits.
FIG. 4 is a block diagram of the business logic module 302, depicted in FIG. 3, according to an illustrative embodiment of the invention. The business logic module 302 includes several, in this example, four, predictive models 402a-402d (generally “predictive models 402”). The inclusion of four predictive models is merely illustrative in nature. In various implementations, the business logic module may include as few as one predictive model 402 or more than four predictive models 402.
A predictive model 402 preferably takes into account a large number of parameters. The predictive models 402, in various implementation, include one or more of neural networks, Bayesian networks (such as Hidden Markov models), expert systems, decision trees, collections of decision trees, support vector machines, or other systems known in the art for addressing problems with large numbers of variables. Preferably, the predictive models 402 are trained on prior data and outcomes known to the insurance company. The specific data and outcomes analyzed vary depending on the desired functionality of the particular predictive model. The particular data parameters selected for analysis in the training process are determined by using regression analysis and/or other statistical techniques known in the art for identifying relevant variables in multivariable systems. The parameters can be selected from any of the structured data parameters stored in the data warehouse 118, whether the parameters were input into the system originally in a structured format or whether they were extracted from previously unstructured text.
Business logic module 302 includes an underwriting workflow model 402a, a coverage recommendation model 402b, a pricing model 402c, and a fraud detection model 402d. The predictive models 402a-402d result in the output of an estimated policy price 404, a suggested set of policy parameters 406, and a required underwriting workflow component 408.
The underwriting workflow model 402a determines one or more underwriting workflow components that will be required to extend a given set of coverages at a particular price to a customer. Coverages for more homogenous industries require less underwriting than coverages for businesses that entail greater individual risk variation. Underwriting work flow components may include, without limitation, a loss-control investigation, review by a human underwriter, verification of data with documentary evidence, automatic issuance/declination of a policy, flagging of additional risk characteristics requiring further exposure development, identification of unique risks that warrant special attention (e.g. review by home office staff or manuscript endorsements), and indication of underwriting authority levels. In addition, or in the alternative, the underwriting workflow model 402a may output that no separate underwriting steps are required and that the proposed coverage may be extended without further review.
The coverage recommendation model 402b outputs a suggested set of policy parameters in response to the insurance system 102 receiving an application for a new or renewal policy or an insurance quote request. The policy parameters include, without limitation, suggested coverages and riders, and associated limits and deductibles. The set of policy parameters is derived for the customer based on historical coverage selections and claims histories of other customers having similar attributes, similar claims histories, and similar risk profiles as the applicant for the new or renewal policy. In one implementation, the coverage recommendation model 402b determines a set of suggested policy parameters dynamically each time a new or renewal policy is requested or a quote request is received. In another implementation, on a periodic basis, the coverage recommendation model 402b is executed to generate a set of suggested policies. Then, when an applicant requests a new or renewal policy or a quote there for, the coverage recommendation model 402b recommends a policy from the previously generated set of policies that most closely matches the profile of the applicant. In both cases, a user of the system, for example, an insurance agent or the customer, can then change the suggested policy parameters to personalize the policy to their own preferences. In one implementation, a policy having a suggested set of policy parameters is treated preferentially by the underwriting business logic in comparison to manually generated policies or modified suggested policies.
The pricing model 402c outputs a price associated with a given set of coverage parameters, underwriting workflow components, and customer attributes. The output may be an actual premium associated with the input, for example, if no manual underwriting is required. Alternatively, the output may be an estimated premium that may vary based on the results of any further underwriting workflow components.
The fraud detection model 402d outputs a value corresponding to the likelihood that data entered into the insurance system 102 is fraudulent. The value may be a likelihood score, a probability, or a qualitative or quantitative classification, e.g., high, medium, or low, top 30%, middle 30%, or bottom 40% of insurance requests ranked based on their respective likelihoods of fraud.
In one implementation, the predictive models 402a-402d operate independently from one another, using only the input received from the data capture module 306 and the data warehouse 312. In the illustrative implementation, the outputs of one or more of the predictive models 402a-402d serve as inputs to others of the predictive models 402a-402d. In a simple case, the output of the fraud detection model 402d, which includes a likelihood that the requester of insurance is submitting fraudulent information, serves as an input to the underwriting workflow model 402a. In response to the fraud detection model 402d outputting an elevated likelihood of fraud, the underwriting workflow model 402a is more likely to output a more stringent underwriting process. In this case, the fraud detection model 402d and the underwriting workflow model 402a, can be executed serially.
In contrast, in a more complex implementation, two or more predictive models may execute in a loop fashion. For example, the output of the coverage recommendation model 402b serves as an input to the pricing model 402c, and the output of the pricing model serves as an input to the coverage recommendation model 402b. The models 402b and 402c execute one after another until their outputs across iterations stabilizes, until the variation in the outputs exhibits desirably small changes, or for a predetermined number of iterations.
For example, in addition to price (i.e., the output of pricing model 402c), the coverage recommendation model 402b includes the following input parameters obtained by the data capture module 306: customer size, customer annual revenues, customer assets, business type identifier (e.g., an SIC code), and claims history. Based on the type of business the customer participates in and the customer's claims history, the coverage recommendation model 402b might recommend a first set of coverages if price were not an option. However, as the amount of insurance a customer is capable and willing to pay will vary based on its revenues and the assets at risk, a coverage recommendation can be improved if price is considered along with these and the other parameters described above. Thus, after an initial set of recommended coverage parameters is determined by the coverage recommendation model 402b, the output set of coverage parameters is processed along with the data capture module 306 provided parameters to determine a price corresponding to extending such coverage to the particular customer. The price output by the pricing model 402c is then re-input into the coverage recommendation model 402b. Depending on the price, the coverage recommendation model may vary its output to recommend additional coverages, fewer coverages, different deductibles and liability limits, and/or different exclusions. The subsequent recommended set of coverages is input into the pricing model 402c to determine an updated price. The process continues for a predetermined number of iterations or until the output of the coverage recommendation model 402b or the pricing model 402c stabilizes.
In an alternative implementation, the coverage recommendation model 402b outputs a plurality of sets of recommended coverage parameters along with corresponding scores. Each of the recommended coverage sets is then processed in a loop fashion with the pricing model 402c to tune the parameters of each respective set of coverage parameters. In still another embodiment, the processing loop also includes the underwriting workflow model 402a, to determine the appropriate underwriting workflow for each recommended set of coverages and corresponding price.
Other suitable parameters for processing by the predictive models 402a-402c include, without limitation, location, desired premium range, number of employees, property to be insured, value of property to be insured, products, regulatory regime, number of insurance request resubmissions (as described below), agent identifier, agent profitability history, agent data quality history, employee driving records, wage levels of employees, proximity to certain geographic characteristics, business demographics, and fit of specific operations of a business within a more general classification.
The final outputs of the model are output to the user interface 304 for review. FIG. 5 is an illustrative screen shot 500 of the output of the business logic module 302. The screen shot 500 includes three recommended coverage sets 502a, 502b, and 502c (generally “recommended coverage sets 502”). Each recommended coverage set 502 includes a list of coverage parameters 504, including a premium, and a corresponding underwriting workflow component 506a-506c (generally “underwriting workflow component 506”). For example, the first recommended coverage 502a requires no additional underwriting to complete the underwriting of the application. In contrast, the second recommended coverage set 502b requires human underwriting review to complete the underwriting of the application. The presented premium, in cases in which some additional underwriting is required, may only be a premium estimate, as the results of the underwriting may change based on the results of carrying out the required underwriting workflow component 506.
The user interface screen shot 500 also includes fields 510 for each recommended coverage set 502a for a user to accept a presented parameter. For presented parameters the user does not wish to accept, the user may select an alternative using drop down boxes 511 or may leave the parameter field as a variable. After the user is finished adjusting the parameters, the user may select a re-submit button 512a-512c corresponding to the respective recommended coverage set 502a-502c. The revisions are then output back to the business logic module 302 through the data capture module 306. The predictive models 402a-402d of the business logic module 302 re-execute using the newly submitted data in addition to prior submitted data. Manually revised parameters are considered fixed, or in some cases fuzzy, criteria by the models 402, and are not varied or are only minimally varied during the re-execution process. For example, if the user modifies a price corresponding to a suggested set of parameters, the models 402 consider the modified price a fixed or fuzzy threshold and will iterate until they find one or more sets of coverage parameters and underwriting workflows that has a price that is near, at, or below that threshold. If after a predetermine number of iterations, no such set of coverages and underwriting workflows are identified, the request is denied. Similarly, in addition, or in the alternative, a user may confirm the selection of a particular coverage, deductible, coverage limit, and/or underwriting workflow component prior to reprocessing by the business logic module 302.
After reviewing the recommended coverage parameter sets 502a-502c, the user may save one or more of the recommended coverage sets 502a-502c by selecting corresponding save buttons 514a-514c. In addition, a user may accept a recommended coverage set 502a-502c to submit an application for insurance having the identified parameters by selecting a corresponding accept button 516a-516c. Upon acceptance, depending on the desired underwriting workflow component 506, various steps may be automatically initiated. For example, upon selection of accept button 516a, for which no additional underwriting is required, the insurance system binds the customer to a policy with the presented parameters. Upon selection of accept buttons 516b or 516c, the insurance request is automatically forwarded to an underwriting system for assigning personnel to and scheduling manual underwriting review and/or loss control investigations. While the illustrative screen shot 500 only includes three suggested parameter sets 502a-502c, alternative user interface 304 implementations may present fewer or a larger number of suggested parameter sets 502 to a user without departing from the scope of the invention.
Referring back to FIG. 4, the business logic module also includes a rules engine 410. The rules engine 410, preferably a software module, routes data from the data capture module 306 and/or the data warehouse 312 to the appropriate predictive models. The rules engine 410 includes an expert system trained to determine the parameters needed for proper execution of each of the respective models 402. In response to the rules engine 410 receiving an insurance request with insufficient data for the predictive models 402 to execute properly, the rules engine 410 sends a message to the data capture module 306 to retrieve the required data. In an alternative embodiment, one or more of the predictive models 402 is configured to transmit messages to the rules engine 410 to obtain additional data or verify previously received data in response to a determination by the model 402 that the data upon which it is executing is either insufficient or likely includes an error.
Referring back to FIGS. 1 and 3, FIG. 6 is a block diagram of a data capture module 306, according to an illustrative embodiment of the invention. The primary functions of the data capture module 306 are to identify the appropriate sources for data parameters required by the business logic module, obtain the required data, and forward the data to the business logic module 306 for processing. This functionality may be implemented across the business logic processor 120 and one or more of the application servers 114. The source identification logic is incorporated into a set of business rules 602 that associates data parameters with one or more data sources, including user interface 304 users, third party data sources 108, telematics data providers 110, and the data warehouse 118/312. The business rules 602 also include rules used to convert obtained data into the format used by the predictive models for processing.
For data to be obtained from the third party data sources 108 and telematics data providers 110, in one implementation, the data capture module 305 includes a web services server 604 executing one or more web services for automatically querying and obtaining query responses from remote servers operated by the third party data sources 108 and telematics data providers 110. In addition, or in the alternative, the web services server 604 includes a web crawling application to identify relevant information from the broader World Wide Web.
For data to be obtained from user interface 304 users, the data capture module includes a web server 606 for generating web pages to serve to agent systems 104 or customer systems 106 and to receive data therefrom. The web pages may be implemented in part in HTML, SHTML, AJAX, XML, JAVA, MACROMEDIA FLASH, or other web programming or scripting language.
In one implementation, the questions displayed in the web page output by the web server 606 to a user via the user interface 304 are determined dynamically at least in part based on direction from the business logic module 302. The business logic module 302 may direct the web server 606 to generate a web having questions dynamically selected based on data reviewed from the data warehouse 118/312, third party data sources 108, telematics data providers 110, and/or based on responses to prior questions. In one particular implementation, the business logic module 302 selects questions to present to the user via the user interface 304 based on information known about the user. For example, if the user is known to be a customer with limited knowledge of insurance, the business logic module 302 directs the web server 606 to generate a web page that presents questions in a first format; whereas when the user is known to be an experienced agent, the questions are presented in a second format. Similarly, the business logic module 302 may select questions to be presented to the user based on prior history of interactions with the user. For example, if the user is an agent with only limited experience selling policies for the company, the business logic module 302 may direct the web server 606 to generate a web page that presents more or different questions than if the user is known to be an experienced agent. Questions may also be selected by the business logic module 302 based on the performance history of policies issued by a particular agent. For example, if polices issued by a given agent historically result in higher than average loss profiles, the business logic module 302 may direct the web server 606 to generate a web page that presents more or different questions to that particular agent.
The data capture module 306 also includes a text mining engine 608, an information extraction engine 610, and a relationship engine 612 for extracting additional data from unstructured data and for making connections between data entered in relation to one insurance request or claim with other insurance requests and claims. The text mining engine 608, information extraction engine 610, and relationship engine 612 may process documents retrieved from the data warehouse 118, documents retrieved from third party data sources, and the free-form text entry fields of insurance forms presented via the user interface 304.
The text mining engine 608 extracts structured data from the unstructured text included in unstructured text documents received or stored by the insurance system 102. The text mining engine 608 includes an optional optical character recognition process to detect text in documents stored in an image format. In one embodiment, the text mining engine 608 includes a non-natural language parser for identifying key words in documents. The key words identified may be based on a predetermined list of words, or they may be identified by analyzing the frequency of the word in the document or a corpus of documents being analyzed. In another implementation, the text mining engine 608 includes a natural language parser for extracting semantic meaning from text in addition to detecting the presence and/or frequency of particular key words. The text mining engine 608 may take on a number of other forms without departing from the scope of the invention.
The information extraction engine 610, in one implementation, is integrated with the text mining engine 608. The information extraction engine 610 identifies names of people, places, and things in documents and identifies semantic relationships between people and objects. The output of the text mining engine 608 and the information extraction engine 610 may be stored in the data warehouse 118/312 or may be output directly to the business logic module 302.
The relationship engine 612 analyzes data stored in the data warehouse 118/312 to draw linkages between individual datum which may not already be logically linked. The linked data may be related to a single customer or claim, or they may be related to different customers or claims. For example, in handling claims for a first customer, the insurance company learns that a particular individual owned a company that experienced numerous claims. The fact that this individual is associated with a negative loss history is stored in the data warehouse. In a later insurance request from a new customer, the insurance company learns that the new business is owned by that same individual without being directly informed that the individual was associated with the negative loss history. By processing the information by the relationship engine 612, the individual will be linked to their loss history, and the data stored for the new customer will be updated in the data warehouse 118 accordingly.
The relationship engine 612 can also be employed to detect discrepancies in data received from multiple sources. For example, if in a form a customer indicates that an insured property is of a first size, and a third party data source 108, for example, a real estate information database, indicates that the property is of a second size, the relationship engine 612 can instruct the data capture module 306 to obtain further information to verify the actual size or to require investigation of the facts during underwriting. Such discrepancies may be output to the fraud detection model 402d in the business logic module 302. Alternatively, the relationship engine 612 can issue an alert. Similarly, in analyzing automobile accidents, the relationship engine can detect discrepancies between written accounts of the accident from different parties and data collected from telematics data sources 110 monitoring one or more of vehicles involved in the accident.
Preferably, the insurance decision making system is dynamic in nature. That is, based on information learned from analyses carried out by the predictive models 402 and the relationship engine 612, the text mining engine 608, the information extraction engine 610, the relationship engine 612, and the predictive models 402 are updated to reflect relevant information. For example, the predictive models can be used to detect trends in input data. For example, by analyzing extracted text in relation to outcomes, the predictive models can determine new structured parameters to include in an analysis and/or new weights to apply to previously known parameters. In addition, as new actual data is collected, for example, the actual losses associated with a particular policy are experienced, the system can be retrained with the new outcome data to refine its analysis capabilities. In one implementation, the system is retrained on a monthly basis. In other embodiments, the system is trained on a weekly, quarterly, and annual basis. In another embodiment, the system is retrained continuously.
FIG. 7 is a flow chart of a method 700 for handling an insurance request, according to an illustrative embodiment of the invention. As mentioned above, an insurance request may include a request for new coverage, additional coverage, renewal coverage, or a quote for any of the above. The method begins with accepting data from a user related to the insurance request via a user interface (step 702). The user may be an insurance agent or a customer.
Next, additional data is obtained to support the handling of the insurance request (steps 702-708). Each of the following steps is optional. At step 704, structured data is extracted from unstructured text using a text mining application. This step may also include extracting information from the text using an information extraction application. The unstructured text may be received via the user interface, from databases operated by the insurance company, such as the data warehouse 118, or third party data sources. At step 706, data is collected from a third data source as those described above in relation to third party data sources 108. At step 708, data is collected from providers of telematics data 110.
Next, the method 700 includes identifying parameters for which no, little, suspect, or otherwise inadequate data was provided that would benefit the proper execution of the handling process (step 710). If any such parameters are identified, the data acquisition steps 702-708 are repeated to obtain data for the identified parameters. If no parameters are identified at step 710, the obtained data is processed using predictive models (step 712). Preferably, the output of a first predictive model serves as an input to a second predictive model. In addition, an output of the second predictive model also serves as an input to the first predictive model. During or after processing, the method may optionally include returning to step 710 to identify if obtaining data for any model data parameters would improve performance of the models.
Based on the processing carried out at step 712, several outputs are provided (steps 714-718). At step 714, one or more sets of suggested policy parameters are output for presentation to the user. At 716, corresponding underwriting workflow components are output in relation to each respective set of suggested policy parameters. Finally, at step 718, corresponding premium prices are also output for presentation to the user via the user interface.
The invention may be embodied in other specific forms without departing from the spirit or essential characteristics thereof. The forgoing embodiments are therefore to be considered in all respects illustrative, rather than limiting of the invention.

## Claims

1. A computer system configured to process request data employing at least first, second and third predictive models connected in a feedback loop configuration comprising:
an application server configured to generate web pages to serve as user interfaces on user systems for accepting data related to an insurance request from a user, and to receive, via a network, telematics data derived from sensors monitoring one or more of vehicles, property, goods and individuals;
one or more computing devices, the computing devices comprising at least one central processing unit and a non-transitory computer readable medium, the non-transitory computer-readable medium storing computer-executable instructions;
a computerized underwriting workflow predictive model, trained in accordance with prior data and outcomes, using data parameters selected, from a plurality of stored data parameters, by regression analysis, configured to dynamically select and output, automatically and without human intervention, one or more of a plurality of available underwriting workflow components, the available underwriting workflow components comprising conducting a loss control investigation, requesting underwriting review of an insurance policy, verifying the accepted data with documentary evidence, and automatically issuing or declining the insurance policy, to apply in underwriting the recommended insurance policy;
a computerized pricing predictive model, trained in accordance with prior data and outcomes, using data parameters selected, from a plurality of stored data parameters, by regression analysis, configured to determine and output, automatically and without human intervention, a price corresponding to the recommended insurance policy determined based on the output from the computerized underwriting workflow predictive model, coverage parameters for the recommended insurance policy, and the received data, and
a computerized coverage recommendation predictive model, trained in accordance with prior data and outcomes, using data parameters selected, from a plurality of stored data parameters, by regression analysis, configured to determine and output, automatically and without human intervention, the coverage parameters for the recommended insurance policy,
wherein the predictive models are connected in a feedback loop configuration such that a price output from the pricing computerized predictive model is fed as an input to the computerized underwriting workflow predictive model and the computerized coverage recommendation predictive model, output from the computerized underwriting workflow predictive model is fed as an input to the computerized pricing predictive model and the computerized coverage recommendation predictive model, and an output from the computerized coverage recommendation predictive model is fed as an input to the computerized pricing predictive model and the computerized underwriting workflow predictive model,
wherein the instructions cause the central processing unit to iteratively execute the computerized predictive models in feedback loops until one of: (a) outputs of the predictive models across iterations stabilize; (b) a variation in outputs exhibits no more than predetermined changes; or (c) a predetermined number of iterations have been completed;
wherein the instructions further cause the central processing unit to, upon reaching one of (a), (b) or (c), provide output data based on the determination reached by executing the computerized predictive models in feedback loops to the application server, the output data comprising a plurality of recommended coverage sets;
wherein the application server is further configured to generate for display an interactive user interface including data indicative of each one of the plurality of recommended coverage sets, fields for receipt of user selected parameter adjustments, the adjustments being output to the central processing unit by the application server, the central processing unit being configured to cause the computerized predictive models to re-execute, employing the user selected parameter adjustments as fixed or fuzzy parameters, to, automatically and without human intervention, (i) determine a plurality of updated recommended coverage sets, and return data indicative of the updated recommended coverage sets to the application server for display, or (ii) perform a predetermined number of iterations of processing by the computerized predictive models, and, responsive to no set of coverages being identified after performance of the predetermined number of iterations, return data indicative of a denial of request for coverages to the application server.

2. The system of claim 1, wherein the one or more underwriting workflow components output by the computerized underwriting workflow predictive model are selected based on the price corresponding to the recommended insurance policy determined by the computerized pricing predictive model.

3. The system of claim 1, wherein the plurality of available underwriting workflow components further include identifying additional risk characteristics requiring further exposure development, identifying unique risks that warrant special attention, and indicating underwriting authority levels.

4. The system of claim 1, wherein the user interface receives revision data from the user corresponding to a revision by the user to the recommended insurance policy.

5. The system of claim 4, wherein the revision by the user is to change one or more of the coverage parameters.

6. The system of claim 4, wherein the revision by the user is to change a price corresponding to the recommended insurance policy determined by the computerized pricing predictive model.

7. The system of claim 4, wherein the revision by the user is to change the one or more underwriting workflow components selected by the computerized underwriting workflow predictive model.

8. The system of claim 4, wherein the computerized underwriting workflow model and the coverage recommendation computerized predictive model, connected in a feedback loop with the computerized underwriting workflow predictive model, receive the revision data and adjust one or more of the coverage parameters for the recommended insurance policy based on the revision data.

9. The system of claim 8, wherein the adjustment of the coverage parameters is executed iteratively by the computerized underwriting workflow model and the coverage recommendation computerized predictive model.

10. The system of claim 1, wherein the business logic processor further comprises a fraud detection model configured to output a value corresponding to a likelihood that the received data is fraudulent, and wherein the underwriting workflow model is configured to be more likely to output a more stringent underwriting process based on an increased value of a likelihood that the received data is fraudulent output by the fraud detection model.

11. A computerized method comprising:
by an application server, generating a user interface;
receiving, by the application server, data related to an insurance request from a user via the user interface;
receiving, by the application server, via a network, telematics data derived from sensors monitoring one or more of vehicles, property, goods and individuals;
processing the received data by (i) a computerized underwriting workflow predictive model trained in accordance with prior data and outcomes, using data parameters selected, from a plurality of stored data parameters, by regression analysis, configured to dynamically select and output, automatically and without human intervention, one or more of a plurality of available underwriting workflow components, the available underwriting workflow components comprising conducting a loss control investigation, requesting underwriting review of an insurance policy, verifying the accepted data with documentary evidence, and automatically issuing or declining the insurance policy, to apply in underwriting the recommended insurance policy; (ii) a computerized pricing predictive model trained in accordance with prior data and outcomes, using data parameters selected, from a plurality of stored data parameters, by regression analysis, configured to determine and output, automatically and without human intervention, a price corresponding to the recommended insurance policy determined based on the output from the computerized underwriting workflow predictive model, coverage parameters for the recommended insurance policy, and the received data, and (iii) a computerized coverage recommendation predictive model trained in accordance with prior data and outcomes, using data parameters selected, from a plurality of stored data parameters, by regression analysis, configured to determine and output, automatically and without human intervention, the coverage parameters for the recommended insurance policy,
the processing being performed in a feedback loop configuration such that an output from the computerized pricing predictive model is fed as an input to the computerized underwriting workflow predictive model and the computerized coverage recommendation predictive model, and an output from the computerized underwriting workflow predictive model is fed as an input to the computerized pricing predictive model and the computerized coverage recommendation predictive model, and an output from the computerized coverage recommendation predictive model is fed as an input to the computerized pricing predictive model and the computerized underwriting workflow predictive model; and
the processing further comprising:
iteratively executing the computerized predictive models in feedback loops until one of: (a) outputs of the predictive models across iterations stabilize; (b) a variation in outputs exhibits no more than predetermined changes; or (c) a predetermined number of iterations have been completed;
upon reaching one of (a), (b) or (c), providing output data based on the determination reached by executing the computerized predictive models in feedback loops to the application server, the output data comprising a plurality of recommended coverage sets;
by the application server, generating for display an interactive user interface including data indicative of each one of the plurality of recommended coverage sets, and fields for receipt of user selected parameter adjustments;
outputting by the application server, to the business logic processor, the adjustments;
re-executing the computerized predictive models, by the business logic processor, responsive to receipt of the adjustments, employing the user selected parameter adjustments as fixed or fuzzy parameters, to, automatically and without human intervention, (i) determine a plurality of updated recommended coverage sets, and return data indicative of the updated recommended coverage sets to the application server for display, or (ii) perform a predetermined number of iterations of processing by the computerized predictive models, and, responsive to no set of coverages being identified after performance of the predetermined number of iterations, return data indicative of a denial of request for coverages to the application server.

12. The method of claim 11, further comprising outputting, by the computerized pricing predictive model, a price corresponding to the recommended insurance policy determined based on the accepted data and the output from the computerized underwriting workflow predictive model.

13. The method of claim 11, further comprising outputting, by the computerized coverage recommendation predictive model, the coverage parameters for the recommended insurance policy determined based on the accepted data and the output from the computerized underwriting workflow predictive model.

14. The method of claim 12, wherein the one or more workflow components output by the computerized underwriting workflow predictive model are selected based on the price corresponding to the recommended insurance policy determined by the computerized pricing predictive model.

15. The method of claim 11, further comprising
receiving by the user interface revision data from the user corresponding to a revision by the user to the recommended insurance policy, and
adjusting, by the computerized underwriting workflow predictive model and the computerized pricing predictive model, one or more of the coverage parameters for the recommended insurance policy based on the received revision data.

16. The method of claim 15, further comprising iteratively executing the adjustment of the coverage parameters by the computerized underwriting workflow model and the computerized pricing predictive model.

17. A non-transitory computer readable medium storing computer executable instructions, which, when executed by a processor, cause the processor to carry out a method, the method comprising:
receiving data related to an insurance request from a user via a user interface;
providing a computerized underwriting workflow predictive model trained in accordance with prior data and outcomes, using data parameters selected, from a plurality of stored data parameters, by regression analysis, configured to dynamically select and output, automatically and without human intervention, one or more of a plurality of available underwriting workflow components, the available underwriting workflow components comprising conducting a loss control investigation, requesting underwriting review of the insurance policy, verifying the accepted data with documentary evidence, and automatically issuing or declining the insurance policy, to apply in underwriting the recommended insurance policy; a computerized pricing predictive model trained in accordance with prior data and outcomes, using data parameters selected, from a plurality of stored data parameters, by regression analysis, configured to determine and output, automatically and without human intervention, a price corresponding to the recommended insurance policy determined based on the output from the computerized underwriting workflow predictive model and the accepted data, and a computerized coverage recommendation predictive model, trained in accordance with prior data and outcomes, using data parameters selected, from a plurality of stored data parameters, by regression analysis, configured to determine and output, automatically and without human intervention, the coverage parameters for the recommended insurance policy, in a feedback loop configuration such that an output from the computerized pricing predictive model is fed as an input to the computerized underwriting workflow predictive model and an output from the computerized underwriting workflow predictive model is fed as an input to the computerized pricing predictive model and the computerized coverage recommendation predictive model, and an output from the computerized coverage recommendation predictive model is fed as an input to the computerized pricing predictive model and the computerized underwriting workflow predictive model; and
processing the accepted data to determine coverage parameters for a recommended insurance policy by the computerized underwriting workflow predictive model and the computerized pricing predictive model, wherein processing the accepted data comprises
iteratively executing the computerized predictive models in feedback loops until one of: (a) outputs of the predictive models across iterations stabilize; (b) a variation in outputs exhibits no more than predetermined changes; or (c) a predetermined number of iterations have been completed;
upon reaching one of (a), (b) or (c), providing output data based on the determination reached by executing the computerized predictive models in feedback loops to an application server, the output data comprising a plurality of recommended coverage sets;
by the application server, generating for display an interactive user interface including, in separate screen areas, data indicative of each one of the plurality of recommended coverage sets, each screen area comprising fields for receipt of user selected parameter adjustments;
providing by the application server, the adjustments;
re-executing the computerized predictive models, responsive to receipt of the adjustments, employing the user selected parameter adjustments as fixed or fuzzy parameters, to (i) determine a plurality of updated recommended coverage sets, and return data indicative of the updated recommended coverage sets to the application server for display, or (ii) perform a predetermined number of iterations of processing by the computerized predictive models, and, responsive to no set of coverages being identified after performance of the predetermined number of iterations, return data indicative of a denial of request for coverages to the application server.

18. The non-transitory computer readable medium of claim 17, wherein the non-transitory computer readable medium further stores instructions for causing the processor to output, by the computerized pricing predictive model, a price corresponding to the recommended insurance policy determined based on the accepted data and the output from the computerized underwriting workflow predictive model.

19. The non-transitory computer readable medium of claim 18, wherein the one or more underwriting workflow components output by the computerized underwriting workflow predictive model are selected based on the price corresponding to the recommended insurance policy determined by the computerized pricing predictive model.

20. The non-transitory computer readable medium of claim 17, wherein the non-transitory computer readable medium further stores instructions for causing the processor to
receive via the user interface revision data from the user corresponding to a revision by the user to the recommended insurance policy, and
adjust, by the computerized underwriting workflow predictive model and the computerized pricing predictive model, one or more of the coverage parameters for the recommended insurance policy based on the received revision data.

21. The non-transitory computer readable medium of claim 20, wherein the non-transitory computer readable medium further stores instructions for causing the processor to iteratively execute the adjustment of the coverage parameters by the computerized underwriting workflow model and the second computerized predictive model.