Insurance System Dynamic Bonus Coverage
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Solution Overview
Problem
Insurance products typically do not account for performance bonuses when providing income replacement, leading to significant income loss during illness or disability, as they only cover a fixed percentage of the insured's salary without considering performance-related bonuses.
Innovation Solution
An insurance system and method that receive percentage bonus information and health program status information to determine a portion of the annual salary payable as a performance bonus in the event of illness, disability, or other insured events, ensuring coverage for performance bonuses.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Ease of operation
If insurance products only cover a fixed percentage of salary, then the insurance product structure is simple and easy to administer, but the income replacement is insufficient during illness or disability
Solution Approach 1:
The patent applies dynamics by transitioning from a static fixed percentage salary coverage to a dynamic coverage model that adjusts based on the insured person's actual earnings. The system automatically calculates coverage amounts by integrating performance bonus data with base salary information, ensuring the insurance coverage adapts to the insured's actual income level without requiring manual intervention to update coverage terms.
2Device complexity
If insurance products do not consider performance bonuses, then the product design is simple, but the income protection is incomplete during insured events
Solution Approach 1:
The patent merges previously separate insurance coverage calculations with performance bonus data from the employer's payroll system. By integrating these data sources, the system comprehensively captures the insured person's total earnings including performance bonuses, ensuring complete income protection while maintaining streamlined operations through automated data exchange between systems.
3Ease of operation
If insurance coverage is based on average salary only, then the calculation is straightforward, but it fails to capture variable performance-related income
Solution Approach 1:
The patent implements feedback by establishing an automated data exchange mechanism where the employer's payroll system continuously provides performance bonus information to the insurance system. This feedback loop ensures the insurance coverage calculations always reflect the most current earnings data, capturing variable performance-related income without requiring manual updates or complex manual calculation processes.
Data Source
AI summary
A method, information processing system, and computer readable storage medium operate an insurance program to insure a performance bonus of an insured person against an insured event. A set of percentage bonus information is received. The set of performance bonus information indicates a percentage of an annual salary that is received by the insured person as a performance bonus in a predetermined prior period. In addition, a set of health program status information is received and associated with the insured person. At least the set of percentage bonus information and the set of health program status information are used to determine a portion or more of an annual salary of the insured person payable as an insured performance bonus in the event of the insured event.