Abstract: A method of characterizing relative risks associated with a plurality of financial products comprises the steps of identifying one or more risk classes associated with the products, determining for each risk class an expected occurrence rate, dividing the expected occurrence rates by an average rate to determine relative risk ratios, and comparing the relative risk ratios to characterize the relative risks associated with the products. In certain embodiments, one or more of the risk classes are associated with one or more criteria. The criteria may be modified and the method repeated to determine an impact of the modification on the relative risks associated with the products. The relative risk ratio may be used to redefine one or more of the risk classes. Certain embodiments may include the step of determining a separate relative risk ratio for subgroups of risks.

Abstract: A method for developing assumptions for use in evaluating the possible occurrence of an event comprises the steps of defining a plurality of factors correlated with each other to the event, assigning a plurality of levels to each factor, determining a relative occurrence rate for selected combinations of factors and levels, and assigning selected combinations to one of a plurality of cohorts. In certain embodiments, the method, and a corresponding system are used in designing an insurance product. The method may include the additional steps of assigning values to the levels and evaluating expected performance of the product based upon the values assigned to the levels and the expected loss distribution. The step of producing an expected loss distribution includes determining, for at least some of the selected combinations, a cumulative probability of occurrence, and determining, for at least one of the selected combinations, an incremental probability of occurrence.

Abstract: A method for developing assumptions for use in evaluating the possible occurrence of an event comprises the steps of defining a plurality of factors correlated with each other to the event, assigning a plurality of levels to each factor, determining a relative occurrence rate for selected combinations of factors and levels, and assigning selected combinations to one of a plurality of cohorts. In certain embodiments, the method, and a corresponding system are used in designing an insurance product. The method may include the additional steps of assigning values to the levels and evaluating expected performance of the product based upon the values assigned to the levels and the expected loss distribution. The step of producing an expected loss distribution includes determining, for at least some of the selected combinations, a cumulative probability of occurrence, and determining, for at least one of the selected combinations, an incremental probability of occurrence.

Abstract: The invention concerns a computerized protection system and method for automatically identifying and/or characterizing risk parameters.

Abstract: A method for developing assumptions for use in evaluating the possible occurrence of an event comprises the steps of defining a plurality of factors correlated with each other to the event, assigning a plurality of levels to each factor, determining a relative occurrence rate for selected combinations of factors and levels, and assigning selected combinations to one of a plurality of cohorts. In certain embodiments, the method, and a corresponding system are used in designing an insurance product. The method may include the additional steps of assigning values to the levels and evaluating expected performance of the product based upon the values assigned to the levels and the expected loss distribution. The step of producing an expected loss distribution includes determining, for at least some of the selected combinations, a cumulative probability of occurrence, and determining, for at least one of the selected combinations, an incremental probability of occurrence.