Risk mitigation for affinity groupings

US10713728B1 · kind B1 · utility

Assignee

• State Farm Mutual Automobile Insurance Company · US

Inventors

• Leif Agerholm Roll · Bloomington, US
• Craig Dean Isaacs · Bloomington, US
• Eric A. G. Webster · Mountain View, US
• Gregory Hayward · Bloomington, US

Key dates

• Filing date: Jan 12, 2018
• Grant date: Jul 14, 2020
• Expiry date: Mar 18, 2038

Classification

• Technology area (CPC G): Physics
• CPC primary: G06Q40/06
• WIPO field: IT methods for management
• WIPO sector: Electrical engineering

Abstract

Multiple insurance policies may be grouped or segmented into affinity groups, each of which corresponds to a respective risk level. A set of financial instruments corresponding to a particular affinity group of insurance policies may be created and automatically offered for auction, e.g., online. Bids received from potential investors may indicate, e.g., percentage of assumed risk, percentage of profit sharing, percentage of shared loss, service or commission fee amounts, etc. that are acceptable to the bidding party. The party or parties submitting the winning bids may be awarded investment in the financial instruments and may enter into respective financial agreements with the financial instrument provider, thereby securitizing the risk associated with the insurance policies. Profits and/or losses generated by the insurance policies of the affinity group corresponding to the financial instruments may be distributed in accordance with the terms of the financial agreement.