Invoice Distribution System for Multi-Location Premium Allocation
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Solution Overview
Problem
Current insurance systems face inefficiencies when managing insurance premiums for multiple locations, requiring separate policies and increased processing time, leading to cost inefficiencies and complications for both customers and insurance companies.
Innovation Solution
A system and method that allows customers to specify and automate the allocation of insurance premiums across multiple locations through a rules engine, enabling percentage-based or coverage-based invoice splitting, reducing manual processing and errors.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If separate insurance policies are created for each location, then each location receives specific invoice coverage, but device complexity and processing time increase
Solution Approach 1:
The patent segments the insurance premium allocation by creating virtual location-specific accounts within a unified policy structure. Each location receives customized invoices based on its specific coverage needs while the backend maintains a single consolidated policy, thus achieving location-specific accuracy without the complexity of multiple separate policies.
Solution Approach 2:
The patent introduces an intermediary allocation system that sits between the single insurance policy and multiple locations. This intermediary layer distributes premiums and generates location-specific invoices based on predefined allocation rules, eliminating the need for separate policies while maintaining accurate tracking for each location.
2Reliability
If separate insurance policies are created for each location, then each location receives specific invoice coverage, but processing time increases
Solution Approach 1:
The system segments invoice generation by location while maintaining a single policy backend. This allows parallel processing of location-specific allocations without the sequential overhead of managing multiple separate policies, significantly reducing processing time while maintaining accurate location-specific invoicing.
Solution Approach 2:
The patent implements preliminary allocation rule configuration that pre-defines how premiums should be distributed across locations. This preliminary setup enables automated real-time allocation and invoice generation without requiring manual processing for each location, thus maintaining accuracy while reducing processing time.
3Productivity
If a single insurance policy covers multiple locations, then processing efficiency improves, but customer control over invoice distribution decreases
Solution Approach 1:
The patent implements dynamic allocation rules that allow customers to modify premium distribution parameters across locations in real-time. The system automatically adjusts invoice allocations based on these dynamic customer preferences, maintaining both processing efficiency through automation and customer control through flexible configuration options.
Solution Approach 2:
The system provides feedback mechanisms that show customers how their allocation rules are being applied across locations. This transparency allows customers to understand and control the distribution of their premiums while the system maintains efficient automated processing, resolving the contradiction between efficiency and control.
4Ease of operation
If manual processing is used for multi-location policies, then customer-specific allocation is achieved, but errors increase and efficiency decreases
Solution Approach 1:
The patent implements self-service allocation rules where the system automatically distributes premiums across locations based on customer-defined parameters. This automated self-service approach eliminates manual processing errors while maintaining the flexibility customers need to customize allocations, as the system executes customer specifications precisely without human intervention.
Solution Approach 2:
The patent replaces manual mechanical processing with automated computational systems. The allocation engine uses algorithmic processing to distribute premiums according to customer rules, eliminating the errors inherent in manual processing while preserving allocation flexibility through programmable parameters that customers can configure and modify.
Data Source
AI summary
A method includes receiving, from a computing device of a customer, a request that specifies allocation of an insurance premium to a plurality of locations of the customer. The method includes generating, in response to the request and by an invoice distribution server, one or more rules to implement the request. The method also includes receiving, by the invoice distribution system, an amount of the insurance premium. The method also includes executing the one or more rules to allocate the insurance premium to the plurality of locations of the customer in accordance with the request. The method further includes generating a plurality of invoices indicative of the allocation of the insurance premium.