Methods for grid-based insurance rating

1. A method for rating insurance products using a programmed computer system comprising:

receiving input from a user including a coordinate pair comprising a longitude and a latitude of a location;

determining a target coordinate grid block by truncating a decimal representation of the longitude and latitude of the location with a processor;

querying a database in communication with the processor for a first set of existing data associated with the target coordinate grid block, wherein the existing data was associated with the target coordinate grid block prior to receiving the coordinate pair;

testing the first set of existing data against a minimum amount threshold using the processor;

if the first set of existing data fails to include the minimum amount of data, determining a current ring of coordinate grid blocks grid adjacent to and surrounding the target grid block with the processor;

querying the database for a second set of existing data associated with each coordinate grid block in the current ring of coordinate grid blocks;

testing the second set of existing data against the minimum amount threshold using the processor;

if the second set of existing data passes the test by including at least the minimum amount of data, calculating a rating for an insurance product based at least in part on an analysis of the data in the first set and the second set; and

communicating the resulting rating for the insurance product to the user.

2. The method of claim 1 wherein the step of querying the database for a first set of existing data further comprises:

determining a number of digits truncated from the decimal representation of the longitude and latitude of the location;

determining a longitude query value by truncating the longitude of the coordinate pair based on the number of longitudinal truncation digits;

determining a latitude query value by truncating the latitude of the coordinate pair based on the number of latitudinal truncation digits; and

transmitting the longitude query value and latitude query value to the database.

3. The method of claim 1 wherein the step of querying the database for a second set of existing data further comprises:

determining a number of latitudinal truncation digits and a number of longitudinal truncation digits;

determining a longitude query value by truncating the longitude of the coordinate pair based on the number of longitudinal truncation digits;

determining a latitude query value by truncating the latitude of the coordinate pair based on the number of latitudinal truncation digits; and

transmitting the longitude query value and latitude query value to the database.

4. The method of claim 1 wherein the step of calculating the rating for the insurance product includes applying a rate making formula associated with a predefined geographical area wherein the sole source of variable input to the rate making formula is a set of data elements, each of which is associated with one specific coordinate grid block in the predefined geographical area.

5. The method of claim 1 further comprising determining a grid block size based at least in part on one of:

a peril type,

a population density associated with the coordinate pair, and

a political subdivision associated with the coordinate pair.

6. The method of claim 1 further comprising:

determining an attribute representative of a property at the location indicated by the coordinate pair;

determining a data filter associated with the representative attribute; and

applying the data filter to the second set of existing data.

7. The method of claim 1 further comprising, each occurring prior to receiving the coordinate pair:

receiving a data value corresponding to both a first coordinate grid block and a second coordinate grid block;

storing in the database a first record including the data value and associated with the first grid block; and

storing in the database a second record including the data value and associated with the second grid block.

8. The method of claim 1 wherein the first set of existing data includes a data element that corresponds to at least two coordinate grid blocks.

9. The method of claim 1 wherein the second set of existing data includes a data element that corresponds to at least two coordinate grid blocks.