Method and system of determining and applying insurance profit scores

Abstract

Preferred embodiments of the invention include a new and innovative method and system of determining a profit score for an individual policy, which score may be used to evaluate the desirability of offering or renewing individual insurance policies. The present invention also may be applied to determine the profitability of aggregate books of business, which may be offered by individual insurance agents or agencies, whether captive or independent.

1 . A method for offering an insurance policy comprising:
 electronically obtaining information provided by a potential insured, which information is associated with a risk of loss for an automobile insurance policy;   underwriting the insurance policy in order to determine a premium;   calculating with a computer an expected profitability score representative of an expected profit margin associated with the premium; and   offering the insurance policy in exchange for payment of the premium if the expected profitability score exceeds a predetermined threshold.   
     
     
         2 . The method of  claim 1  wherein the expected profitability score is a scaled and normalized value. 
     
     
         3 . The method of  claim 1  wherein the expected profitability score is calculated exclusively from variable information provided by the potential insured. 
     
     
         4 . The method of  claim 1  wherein the expected profitability score is calculated in part based on information other than the information used to determine the premium. 
     
     
         5 - 10 . (canceled)