Patent ID: 7664690

Claim:
A computer-implemented method comprising: accessing, using one or more processors, available data related to actual average loss costs per claim values paid by an insurer during a past base period in connection with claims for insurance on property that were operatively managed by a third-party service provider; adjusting, using the processors, the available data to compensate for a stochastic influence of external and internal influence unrelated to the operative management of the third-party service provider, further comprising: normalizing, using the processors, the available data to exclude those claims associated with extraordinary events which manifest themselves in above-average volatile quantities and loss costs, indexing, using the processors, the available data to compensate at least for price inflation, and selecting, using the processors, the available data that is associated with a homogenous sub-segment of the claims; using the processors to perform a regression analysis of the adjusted data; determining, using the processors, a target average loss costs per claim value at a particular past time occurring after the base period based on performing the regression analysis; determining, using the processors, an actual average loss costs per claim value at the particular past time, using the available data; determining, using the processors, and as a performance indicator metric, a difference between the target average loss costs per claim value and the actual average loss costs per claim value, multiplied by an actual number of claims in the homogenous sub-segment; and affecting, using the processors, a payment made by the insurer to the third-party service provider based on the performance indicator metric.