Method of determining the premium for and writing a policy insuring against specified weather conditions

摘要

A system and method for writing a policy insuring against the occurrence of a specified weather condition. Historical data of weather conditions is accumulated and stored in a computer memory. When a policy is to be written, information identifying the amount A of the policy, the weather condition against which the policy is to insure, the location of interest, and the time period of interest is applied to the computer which then calculates the policy premium as P=(A×N÷I)+E, or as P=(A×N÷I)×C, where N is the number of occurrences of the specified weather condition during I previous time intervals, E is a factor compensating for overhead expense and profit, and C is a constant. The policy is then written in the amount A at the premium P. Where the policy is to insure over an extended time period or in multiple locations, the premium is adjusted to cover the probability of occurrence of the specified weather condition in any of the locations.