Risk Visualization Interface for Litigation Exposure
Find Innovative SolutionsGenerate Solutions
Solution Overview
Problem
Insurance companies face challenges in assessing and managing their exposure to mass litigation risks, as existing methods are insufficient to protect against significant losses across their underwriting portfolios, particularly due to the correlation of losses associated with litagion agents like asbestos or sub-prime lending practices.
Innovation Solution
The development of visualizations such as Quindrex and dartboard representations that illustrate various metrics of catastrophic risk, including science, law, dynamics, size, and clash metrics, to help insurers understand and quantify their exposure to litagion agents, enabling better risk assessment and policy management.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Reliability
If traditional risk assessment methods are used, then simplicity of assessment is maintained, but the ability to assess and manage mass litigation risks and correlated losses is insufficient
Solution Approach 1:
The patent segments the risk assessment system into multiple specialized components: litigion agent identification module, correlation analysis module, exposure quantification module, and visualization module. Each component handles a specific aspect of the complex risk assessment, allowing the system to manage mass litigation risks effectively while maintaining operational clarity through functional segmentation.
2Loss of information
If comprehensive risk metrics are visualized, then understanding of catastrophic risk is improved, but the complexity of the visualization system increases
Solution Approach 1:
The patent merges multiple risk metrics (science metrics, law metrics, dynamics metrics, size metrics, and clash metrics) into a single integrated visualization interface. This consolidation allows insurers to view comprehensive risk information in one unified display, improving understanding of catastrophic risk while the system manages the complexity of integrating multiple data sources and metric types.
3Measurement precision
If multiple risk metrics are calculated and displayed, then measurement precision of risk exposure is improved, but the difficulty of detecting and measuring risk increases
Solution Approach 1:
The patent implements feedback mechanisms where the system automatically calculates multiple risk metrics (science, law, dynamics, size, and clash metrics) based on input data about litigion agents and company exposures. The visualization interface provides feedback to users about risk levels and correlations, enabling precise measurement of risk exposure while the automated calculation processes manage the complexity of detecting and measuring multiple interrelated risk factors.
Data Source
AI summary
Examples of the disclosure are directed to generating visualizations that illustrate various measures of risk associated with a litagion® agent in the context of entire industries or specific to a single party that produces or uses the litagion® agent. A Quindrex™ visualization can illustrate catastrophic risk presented by a risk agent, such as a litagion® agent. For example, the risk agent may be a chemical such as bisphenol A (BPA) or benzene. The visualization can include a plurality of portions, each corresponding to a metric of catastrophic risk associated with the risk agent visualized. A dartboard visualization can illustrate catastrophic risk presented by risk agents produced or used by a party, such as a company. The visualization can include a plurality of portions, such as wedges in a dartboard, each corresponding to a risk agent produced or used by the party.