Risk Quantification System Using Industry-Specific Weights
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Solution Overview
Problem
Current employee screening procedures rely on subjective assessments by human underwriters, leading to inaccurate risk evaluations, increased costs, and potential liabilities for insurers and employers, as they fail to provide an objective, dynamic, and reliable quantification of risk across industries.
Innovation Solution
A platform that uses objective, rules-based quantification to identify and verify employee screening procedures through industry-specific weights, allowing employers to document their practices and incentivize compliance, enabling insurers to assess risk more accurately and seek remedies when procedures are not followed.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Measurement precision
If human underwriters are used to subjectively assess risk, then information gathering and assessment can be performed with human judgment, but the assessment accuracy decreases and costs increase
Solution Approach 1:
The patent replaces the mechanical system of human underwriters gathering and assessing information with an automated computer-based system that objectively quantifies risk using standardized data collection and algorithmic processing, thereby improving accuracy while reducing time loss
Solution Approach 2:
The system enables employers to self-report their employee screening procedures through automated data entry, eliminating the need for underwriters to manually gather this information and allowing the system to automatically process and quantify the risk based on reported data
2Reliability
If human underwriters are employed to assess risk, then subjective judgment can be applied, but the cost of assessment increases
Solution Approach 1:
The patent substitutes human underwriters with an automated computational system that performs risk assessment objectively, eliminating labor costs while maintaining or improving reliability through consistent application of standardized criteria and quantitative analysis
Solution Approach 2:
The system transforms qualitative subjective judgments into quantitative parameters that can be objectively measured and compared, changing the nature of the assessment from subjective evaluation to objective calculation, thereby improving reliability while reducing costs
3Reliability
If frequent risk assessments are conducted, then dynamic risk changes can be captured, but the time and resource consumption increases
Solution Approach 1:
The system automatically and continuously monitors employer-reported data to update risk quantifications without requiring manual intervention for each assessment, enabling frequent updates while maintaining high productivity through automated data processing
Solution Approach 2:
The system implements continuous risk monitoring where employers report screening procedure changes as they occur, and the system automatically updates risk quantifications in real-time, ensuring continuous accurate assessment without periodic interruptions or manual reassessments
Data Source
AI summary
A system that quantifies the risk of harm or loss posed by an employer by storing employee screening procedures and, for each of a plurality of industries, an industry-specific weight indicative of a relative importance of performing the employee screening procedure to reduce the risk of harm or loss posed by an organization in the industry, providing functionality for the employer to specify the employee screening procedures performed by the employer, receiving verification documents from the employer verifying that the employer performs the employee screening procedures specified by the employer, identifying the industry of the employer, and quantifying the risk of harm or loss posed by the employer by summing each of the industry-specific weights, for the industry of the employer, of the employee screening procedures performed by the employer.