Patent Document ID: 8494822
Application ID: 13616472
Patent Flag: 1

Claim One:
1. A system for modeling of original insurance data in an insurance industry, the system comprising: a memory device; a processor coupled to said memory device, wherein said processor is configured to perform steps of: deriving a non-convex loss function characterized over the original insurance data, the derived loss function optimized to a multi-dimensional calculation that involves a matrix calculation; representing regression functions for the mean and the dispersion as stagewise expansion forms, the stagewise expansion forms including undetermined scalar coefficients and undetermined basis functions; determining the basis functions that maximally correlate with a corresponding steepest-descent gradient direction of the derived loss function; obtaining the scalar coefficients based on a single step of multi-dimensional Newton iteration involving a matrix calculation; making the single step of the multi-dimensional Newton iteration to be a multi-dimensional steep-descent gradient, which involves a matrix calculation, for the obtained scalar coefficients; completing the regression functions based on the determined basis functions and the obtained scalar coefficients; and concurrently estimating, based on the completed regression functions, the mean value and the dispersion value of the original insurance data.