Patent ID: 7769608

Claim:
A method for establishing insurance premiums by forming peril zones for property risk ratings, the method comprising: subdividing a territory into a plurality of regions determined in accordance with at least one predetermined factor; retrieving loss costs for the territory from at least one computerized database using a data processor, the loss costs representing historic costs for a plurality of insured perils; sorting the loss costs on a per-peril basis for the regions using the data processor; creating a plurality of peril zones for the plurality of insured perils using the data processor, each peril zone including a set of regions in which the loss costs for the insured peril are roughly equivalent; combining the plurality of peril zones for the plurality of insured perils to create a plurality of all-peril zones, each of the all-peril zones being an overlapping intersection of one peril zone from each of the plurality of insured perils; and setting insurance premiums for the plurality of all-peril zones.