Insurance Coverage Modeler for Policy Optimization
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Solution Overview
Problem
Consumers often lack awareness of their insurance coverage levels, leading to underinsurance or overinsurance due to challenges in determining optimal coverage and interpreting claim information, even for professionals in the insurance industry.
Innovation Solution
A system and method for modeling insurance coverage using a claim scenario generator that allows users to select and modify coverage parameters graphically, adjusting premiums and generating new policies based on identified disparities, enabling users to optimize coverage levels and costs.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Loss of information
If consumers rely on historical or statistical claim information to determine coverage levels, then coverage determination becomes more informed, but interpretation and application remains challenging requiring professional services
Solution Approach 1:
The patent introduces an insurance coverage modeler as an intermediary tool that bridges the gap between raw claim data and consumer understanding. This software application processes historical and statistical claim information automatically, presenting interpreted results in an accessible format without requiring consumers to directly analyze complex data or hire professionals.
Solution Approach 2:
The system enables consumers to independently determine optimal coverage levels by providing them with a self-service tool that automatically analyzes claim data and generates coverage recommendations. This eliminates the need for professional intermediaries while empowering consumers with actionable insights derived from their own claim history.
2Reliability
If consumers increase insurance coverage to avoid underinsurance, then financial protection improves, but premium costs increase due to overinsurance
Solution Approach 1:
The insurance coverage modeler implements feedback mechanisms that continuously analyze claim data and provide real-time recommendations on optimal coverage levels. The system compares actual claim patterns against current coverage, informing consumers whether they are underinsured or overinsured, enabling them to adjust coverage to match actual needs and avoid both underprotection and excessive premiums.
3Measurement precision
If consumers seek professional insurance services to determine optimal coverage, then coverage accuracy improves, but service complexity and time requirements increase
Solution Approach 1:
The patent replaces the mechanical system of human professional analysis with an automated software-based modeler. The insurance coverage modeler uses algorithms to process claim data and determine optimal coverage levels, achieving professional-grade accuracy without the time investment required for human consultation. The system performs complex analyses instantaneously through computational processing.
Data Source
AI summary
A method, system and computer-usable medium are disclosed for the modeling of insurance coverage. Coverage parameters of a policy are displayed as graphical elements within a user interface (UI) of a computing device along with a plurality of claim scenario parameters for selection by a user. Once selected, the claim scenario parameters are applied to relevant claim data and a claim scenario is generated. The claim scenario is then applied to the policy coverage parameters of the policy to determine and graphically display coverage parameter disparities, which are then graphically modified to offset any coverage parameter disparities. As coverage parameters are modified, corresponding adjustments to the premium of the current policy are made and displayed within the UI. A resulting policy is generated, using the modified coverage parameters of the current policy and adjusted premiums, and then fulfilled, electronically or physically.