Enterprise Usage Estimation for Real-Time Risk Parameter Adjustment

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Solution Overview

Problem

Existing methods for determining insurance policy parameters based on enterprise usage are time-consuming and unreliable, particularly when unexpected events cause fluctuations in production or sales, leading to inaccurate risk assessments.

Innovation Solution

A system and method that utilizes a back-end application computer server to access risk relationship data, receive current usage information, infer actual usage, compare it with predicted values, and automatically adjust insurance parameters, incorporating data from financial, utility, and IoT sources to provide real-time adjustments.

Engineering Contradictions & Design Principles

VSEngineering Contradiction Analysis

1Reliability

If manual data collection and estimation methods are used, then detailed risk assessment can be performed, but the process becomes time-consuming and unreliable

Engineering Contradiction:

Improvereliability of usage estimationVSAvoidtime required for estimation process

Core Design Contradiction:

ReliabilityVSLoss of time

Solution Approach 1:

The patent replaces manual mechanical data collection and estimation processes with automated electronic data processing systems. The system automatically collects usage data from multiple sources, processes it through computational algorithms, and generates risk assessments electronically, eliminating the time-consuming manual procedures while improving reliability through consistent automated processing.

Inventive Principle:

Principle #28Mechanics substitution (Replace mechanical system)

Solution Approach 2:

The system enables self-service by automatically gathering data from multiple sources, performing computations, and generating risk assessments without requiring manual intervention. The automated system serves itself by continuously collecting data, processing it through predefined algorithms, and updating risk profiles autonomously, thereby reducing both time and manual effort.

Inventive Principle:

Principle #25Self-service

2Adaptability or versatility

If traditional data collection methods are used, then comprehensive risk factors can be considered, but the system cannot respond quickly to sudden changes

Engineering Contradiction:

Improveresponsiveness to sudden changesVSAvoidspeed of risk assessment

Core Design Contradiction:

Adaptability or versatilityVSProductivity

Solution Approach 1:

The patent implements continuous data collection and processing operations that run without interruption. The system continuously monitors multiple data sources, automatically updates usage information, and maintains current risk assessments in real-time, enabling immediate response to sudden changes while maintaining high productivity through uninterrupted automated operations.

Inventive Principle:

Principle #20Continuity of useful action

Solution Approach 2:

The system performs preliminary actions by pre-establishing data collection mechanisms, predefined computational algorithms, and automated processing workflows before changes occur. This preparation allows the system to immediately process and respond to sudden changes without delay, enhancing both adaptability and productivity.

Inventive Principle:

Principle #10Preliminary action

3Measurement precision

If automated systems are implemented, then speed and accuracy improve, but system complexity increases

Engineering Contradiction:

Improveaccuracy of usage measurementVSAvoidcomplexity of automated system

Core Design Contradiction:

Measurement precisionVSDevice complexity

Solution Approach 1:

The patent divides the automated system into distinct modular components: data collection modules from multiple sources, data processing modules with specific computational algorithms, analysis modules for risk assessment, and output modules for reporting. This segmentation allows each component to be optimized independently for accuracy while managing overall system complexity through modular architecture.

Inventive Principle:

Principle #1Segmentation

Data Source

PatentUS12620034B2Usage estimation systems and methods for risk association adjustments

Publication Date: 2026.05.05 HARTFORD FIRE INSURANCE CO

AI summary

According to some embodiments, a risk relationship data store may contain electronic records, each electronic record representing a risk relationship between an enterprise and a risk relationship provider (e.g., an insurer), and including, for each risk relationship, an electronic record identifier and a set of estimated usage attribute values. A back-end application computer server may receive, from a current usage data source, current usage information for the enterprise (e.g., financial information, utility information, IoT information, etc.). Based on the current usage information, the computer server may infer a likely actual current usage for the enterprise. The computer server may then compare the likely actual current usage with the predicted usage attribute value to determine a risk difference result and adjust a risk relationship parameter based on the risk difference result.