Patent ID: 8024203

Claim:
A method of evaluating insurance products, comprising: providing a computer system with a bank of insurance product illustration engines corresponding to a plurality of insurance products; receiving, by the computer system, input data corresponding to a plurality of customer scenarios; and for each customer scenario, evaluating, by the computer system, the products using the bank of insurance product illustration engines, wherein evaluating includes: running the input data for the customer scenario through the bank of insurance product illustration engines, thereby generating a policy for each product; outputting from the illustration engines a series of values for each year for each policy, including at least one of premium, death benefit and total cash surrender value; obtaining a series of cash flows for each policy by applying decrement factors to the series of values, including at least one of a first decrement factor representing the probability of the customer's death, a second decrement factor representing the probably of the customer's lapse and a third decrement factor representing the probability of the customer's persistence; determining a value for each of a plurality of scoring components for each policy, wherein the plurality of scoring components includes at least one quantitative scoring component and at least one qualitative scoring component, wherein determining the value for the quantitative scoring component includes: calculating an internal rate of return (IRR) for each policy from the series of cash flows, calculating a statistical distribution of the calculated IRRs of all the policies generated from the customer scenario; and determining the value for the quantitative scoring component for each policy based on comparing the policy's IRR to the statistical distribution of the IRRs; and scoring each policy by combining the plurality of scoring component values to obtain an overall policy score for each policy.