Patent ID: 8069067

Claim:
A computer-based data processing system for determining estimated costs for covering insured losses of a line of business included in a multi-line treaty having an aggregate deductible and an aggregate limit, the system comprising: an estimation module configured to determine for each line of business included in the multi-line treaty a loss distribution indicative of a temporal course of losses expected for the line of business, and a temporal course over multiple calculation periods of a cumulative loss expected per calculation period; a splitting module configured to determine, via a processor, adjusted losses for each line of business included in the multi-line treaty by splitting proportionally among the lines of business an effect of the aggregate deductible and the aggregate limit on the losses expected for the lines of business at different points in time of the temporal course, and to determine, via the processor, for each of the calculation periods an adjustment factor, indicative of the effect of the aggregate deductible and the aggregate limit on the cumulative losses expected for the lines of business at the respective calculation period, and to apply the respective adjustment factor to the cumulative loss of the line of business for each of the calculation period; and a cost assessment module configured to determine the estimated costs for a line of business from the adjusted losses for the line of business.