WO2001069511A1

WO2001069511A1 - A system and a method for generating insurance policy avoiding investment risk for enterprise

Info

Publication number: WO2001069511A1
Application number: PCT/KR2000/000218
Authority: WO
Inventors: Chul Kim
Original assignee: Power Venture Holdings, Inc.
Priority date: 2000-03-16
Filing date: 2000-03-16
Publication date: 2001-09-20
Also published as: AU3333100A

Abstract

Disclosed is a system for generating and executing an insurance policy for avoiding the investment risk in a venture company, which comprises an interface for receiving a user ID number, an insurance policy requirement, a company for investment and insurance period, and receiving and transmitting the data of the insurance policy requirement, transaction results, authentication results, appraisal committee and appraisal company, etc.; database for storing the insurance policy, the user ID number, an insurance rate, and information of the company for investment; CPU (205) for communicating with the interface, performing mathematical computations, and searching the database; processor for calculating amount of insurance fee and amount of insurance coverage; and an operating for operating the system.

Description

A SYSTEM AND A METHOD FOR GENERATING INSURANCE POLICY AVOIDING INVESTMENT RISK FOR ENTERPRISE

FIELD OF THE INVENTION The present invention relates to a system for establishing and executing an insurance policy for preventing an investment risk in a venture company. BACKGROUND ART

Recently, it is widespread all over the country or the world to make an investment in a venture company on a growing industry such as a high-tech field. However, it is difficult for investors to get detailed information on the venture company. Further, since a business success of the venture company is uncertain, it is not easy for investors to take back desired profits from the investment in the venture company.

Though most investors want to seek for a suitable way for securing profits from the investment in the venture company, there is, in reality, little appropriate countermeasure for avoiding the investment risk because it is difficult to establish a suitable insurance policy on account of an ambiguous standard for appraising the venture company and various factors for success in the venture business. Thus, it is desirable to provide a system establishing an insurance policy for protecting the investors from the investment risk according to an unpredictable failure in a venture company. Further, it is required to provide a model for appraising a venture company as a basis for calculating an appropriate insurance rate. DISCLOSURE OF INVENTION

Accordingly, the present invention has been made keeping in mind the above-described shortcoming and user' s need, and an object of the present invention is to provide a system establishing insurance policies that can automatically select factors for appraising a venture company, and determine a suitable insurance rate based on the selected appraisal factors so as to calculate a insurance fee suitable for investment money. This and other objects of the present invention may be accomplished by the provision of a system for generating and executing an insurance policy for avoiding the investment risk in a venture company, which comprises an interface for receiving a user ID number, an insurance policy requirement, an company for investment and insurance period, and receiving and transmitting the data of the insurance policy requirement, transaction results, authentication results, appraisal committee and appraisal company, etc.; database for storing the insurance policy, the user ID number, an insurance rate; CPU for communicating with the interface, performing mathematical computations, and searching the database; processor for calculating amount of insurance fee and amount of insurance coverage; and an operating for operating the system.

Further, the present invention provides a method for generating an insurance policy for avoiding an investment risk in the venture company on a computer network, comprising the steps of receiving appraisal factors for an insurance policy from an appraisal committee through a user interface; storing appraisal factors about each company in databases along with the appraisal committee ID; appraising a risk of company by an appraisal model including the appraisal factors; calculating insurance rate based on the risk of company by a calculation processor and a CPU; and calculating insurance fee and insurance coverage according to each insurance rate.

Further, the present invention provides a method for executing an insurance policy for avoiding an investment risk in the venture company on a computer network, comprising the steps of: calling a central controller by a user, using a communication network; identifying a user or assigning ID to the user; inputting data about settlement manner, company for investment, and investment money; notifying possibility of insuring to the user after the inputted company for investment and investment money are identified by central controller of a sysop; receiving contract conditions such as an insurance fee according to the company for investment and investment money, an selectable insurance period, an insurance coverage in the database, and transmitting it in the case of insuring; identifying policy requirements data inputted by the user at the CPU, and then allowing the user to correct the data in the case of a mistaken inputting, otherwise transmitting authentication information to the user; and allowing the user to confirm the authentication and transmitting data about the fact of confirming to the CPU, thereby finishing insuring.

BRIEF DESCRIPTION OF DRAWINGS The present invention will be better understood and its various objects and advantages will be more fully appreciated from the following description taken in conjunction with the accompanying drawings, in which:

Fig. 1 is a schematic block diagram of a system according to the present invention;

Fig. 2 is a detailed block diagram of a central controller shown in Fig. 1;

Fig. 2a is a block diagram showing classified factors for appraising a risk in a company; Fig. 2b is a table showing a part of a database structure of an insurance policy;

Fig. 2c is a table showing a part of a database structure of transaction data;

Fig. 3 is a flowchart showing a preferred process that an investor is insured to avoid an investment risk in a company;

Fig. 4 is a flowchart showing a process of calculating an insurance coverage and an insurance fee;

Fig. 5 is a flowchart showing a process of inputting and renewing factors for appraising a risk in a company by an appraisal committee;

Fig. 6 is a flowchart showing a process of paying insurance coverage in the system according to the present invention; Fig. 7 is a flowchart showing an exemplary authentication procedure using symmetric key protocols in which a user and a central controller share a key; and

Fig. 8 is a flowchart showing an exemplary asymmetric key protocol in which a communication is encrypted with a private key and decrypted with a public key.

MODES FOR CARRYING OUT THE INVENTION

Hereinbelow, the present invention will be described in more detail with reference to the accompanying drawings, in which the same configuration has the same number. As shown in Fig. 1, a system according to the present invention includes a central controller 200, a user interface 300, and a transaction interface 400. The elements preferably connect to each other via a computer using Internet e.g. WWW (world wide web) or LAN (local area network), or a telephone line. Alternatively, the system elements may be connected by dedicated data lines, cellular phones, Personal Communication Systems ("PCS") , microwaves, satellite networks, or any other suitable data communications. Insurance requirement selection data 50, insurance requirements 60, and transaction data 70 travel through these connections.

Fig. 2 shows a detailed block diagram of the central controller 200 shown in Fig. 1. The central controller 200 preferably includes a central processor unit (CPU) 205, a cryptographic processor 210, a random access memory (RAM) 215, a read-only memory (ROM) 220, a calculation processor 230, an operating system 240, a network interface 245, and a data storage device 250. All the other elements are connected to the CPU 205 to facilitate a communication between them.

The central controller 200 operates as a primary server, communicating with the user interface 300 and the transaction interface 400. The central controller 200 is preferably capable of processing high volume of data, performing a significant number of mathematical calculations and searching a database. The central controller 200 may be a conventional personal computer or a computer workstation with a sufficient capacity. For example, a PENTIUM microprocessor manufactured by Intel, Inc., may be used for the CPU 205. Further, equivalent microprocessors manufactured by other companies may be used for the CPU 205.

The cryptographic processor 210 supports the authentification of encoding and decoding of communications. An MC68HC16 microprocessor, manufactured by Motorola, Inc., may be used for the cryptographic processor 210. One skilled in the art may easily employ other commercially available cryptographic processors for the cryptographic processor 210. The operating system 240 comprises a conventional operating system such as DOS, WINDOWS, or OS2 operating system software.

The calculation processor 230 determines an insurance fee and an insurance coverage, and calculates payments of the insurance coverage in the case of satisfying the insurance requirements. Exemplary services operable on the calculation processor 230 include on-line credit authorizations, credit card settlements, payments to transaction networks, and payment aggregations. The data storage device 250 may include a hard magnetic disk, an optical storage unit, a CD-ROM drive, or a flash memory. The data storage device 250 contains a user database 255, an appraisal factor database 260, a insurance requirement database 265, a transaction data database 270, a risk appraisal database 275 for a company, an insurance rate database 280, an insurance fee and insurance coverage calculation database 285, an insurance coverage payment database 290, and a cryptographic key database 295. The user database 255 maintains data about users, such as names, addresses, credit card numbers, phone numbers, ID numbers, social security numbers, electronic mail addresses, money invested in a company, etc. This information is obtained when the user first insures according to the present system.

As shown in Fig. 2a, the appraisal factor database 260 stores therein an appraisal standard. Herein, factors for appraising a company may include a view of the business, a financial basis, a management basis, etc. of the company. Factors influencing the business view may include profit stability, selling stability, the kind of promising goods of the company, buying stability, etc. The appraisal factors influencing the financial basis may include a loan, loan ability, a support of stockholders, a management of funds, a financial management, etc. The appraisal factors influencing the management basis may include the type of enterprise, management ability, proprietor's ability, etc. Further, each sub-appraisal factor may include another appraisal factors so as to classify many appraisal factors into various hierarchies. In addition, the appraisal factor database 260 may include data about appraisal committee including an ID number, a name, a phone number, an electronic mail address, a scholarship, an age, a social stand, etc., together with a lot of management information about the respective company.

As shown in Fig. 2b, the insurance requirement database 265 contains the insurance requirements 60 being selected by a user, including data such as a user ID number, a credit card number, a policy number, an insurance fee, an insurance coverage, a company for investment, an investment, etc.

As shown in Fig. 2c, the transaction data database 270 stores therein all transaction data relating to an insurance policy. This database is indexed by the policy number, and preferably contains fields such as a user ID number, a policy number, an insurance fee, a transaction data, a credit card number, etc.

In the risk appraisal database 275 are stored the appraisal factors about each company inputted by the appraisal committee connected on the system. This database is formed with a hierarchy structure, and therefore every appraisal field has a plurality of sub-fields. The appraisal committee stores an appraisal result for each company into this database and can update this database at a predetermined period.

The insurance rate database 280 is created by transacting the appraisal result stored in the risk appraisal database 275 by using the calculation processor 230 and the CPU 205, and by calculating the insurance rate for each company. When a user insures, this created insurance rate determines the insurance fee and the compensatory insurance coverage where the company fails, based on money invested in each company by the calculation processor 230 and the CPU 205. This determined data is stored in the insurance fee and insurance coverage calculation database 285 in which a company for investment, a user ID, an insurance fee and an insurance coverage, an insurance period, insurance requirements, etc.

The insurance coverage payment database 290 includes a database about an insurance coverage paid to a policyholder where the company fails, and contains all data before paying the insurance coverage, such as information of a policyholder, an insurance fee and an insurance rate, appraisal factors of the failed company, etc. Finally, the cryptographic key database 295 contains algorithms and keys for encrypting, decrypting, and authenticating communications.

The network interface 245 provides a gateway for communications between transaction networks an appraisal committee, companies registered at the system, and policyholders . Conventional internal or external modems, an exclusive line, a cable line, ADSL (asymmetric digital subscriber line) may serve as the network interface 245. As a preferred embodiment, the network interface 245 is connected with Internet or a personal data network.

In another embodiment, the central controller 200 is configured in a separate structure, wherein the databases and processors are housed in separate units or locations. A controller performs primary processing functions and contains least a RAM, a ROM, and a general processor.

The user interface 300 may include a conventional personal computer having an input device, such as a keyboard, a mouse, or a conventional voice recognition software package; a display device; a processing device, such as a CPU; and a network interface, such as a modem.

With this configuration, the user can communicate with the central controller 200 using various commercial online services, such as AMERICANONLINE, personal computer communications, electronic mails, etc. If the central controller 200 is configured as a Web server, conventional communication software, such as NAVIGATOR or EXPLORER browser software may also be used. The user may use NAVIGATOR browser to transmit and receive data. The transaction interface 400 transmits transaction data 70 from the user to the central controller 200 for processing. The structure of the transaction interface 400 depends on the type of transactions.

Fig. 3 illustrates a preferred process that a user is insured to avoid an investment risk in a venture company. The insurance requirements selection data 50 indicates parameters for the insurance requirements 60 for the venture company, and reflect necessary requirements for the user. Initially, the user calls the central controller 200 using a communication network, such as Internet, etc

(S300) . The central controller 200 processes information provided in steps 310 through 360 described below, as the insurance requirements selection data 50. First, the user provides his or her name or a unique ID number (S310) . The central controller 200 either receives this ID number from the user, or assigns a number to the user. The central controller 200 stores a database of the user ID number in the user database 255, and assigns a unique number. If additional security is required, authentication procedures, described hereinafter in the cryptographic authentication section, may be implemented.

The user provides a credit card number to settle the insurance fee designated under the insurance requirements 60 (S320) . The settlement may be performed by an online settlement connected to a bank or another electronic settlement manner. The user then inputs a company for investment and investment money to the central controller 200 (S330) . To identify the inputted data, the central controller 200 searches the risk appraisal database 275 and the user database 255 and compares data thereof each other, and transmits the result to the user. If the inputted data is correct, the central controller 200 transmits contract conditions such as the insurance fee according to the company for investment and investment money, a selectable term of insurance, a compensatory insurance coverage, etc. to the user. If the inputted data is incorrect, the central controller 200 transmits an incorrect part to the user so as to allow the user to correct it (S340) . The central controller 200 which has received the data inputted from the user transacts the data, and transmits authentication information thereof to the user (S350) . Thereafter, if the user confirms the authentication, the process for the user to select policy requirements for the money invested in the venture company is completed (S360) . Fig. 4 is a flowchart illustrating a process for calculating the insurance fee and the insurance coverage. First, the central controller 200 stores insurance requirements 50 received from the user, along with the user ID number, in the insurance requirement database 265 (S400) . The CPU 205 accesses the risk appraisal database 275 in consideration of the company for investment and investment money, and the insurance period designated in insurance requirements 50 (S410) . The CPU 205 then searches the insurance rate relating to the company for investment in the insurance rate database 280, and calculates it in the calculation processor 230 (S420) . The calculated data is transmitted to a sysop and is confirmed by the sysop (S430) . The data identified by the sysop is transmitted to the user and is reconfirmed by the user, and then the calculated insurance fee and insurance coverage are stored in the insurance fee and insurance coverage calculation database 285 (S440).

Fig. 5 is a flowchart illustrating a process of inputting and renewing a factor for appraising a risk in the company for investment by appraisal committee. First, the sysop inputs information about every company to the risk appraisal database 260 in the data storage device 250 through the transaction interface 400 (S500) . Then, the central controller 200 transmits company for investment information and risk factors data to the appraisal committee through the user interface 300 (S510) . On the basis of information of the company for investment, the appraisal committee input the appraised risk factors about the each company through the user interface (S520) . The inputted data is stored in the risk appraisal database 275 of the data storage device 250 (S530) . Where information about the company is changed, the sysop renews the risk appraisal database 260 through the transaction interface 400. Further, the central controller 200 periodically transmits the data of the renewed risk appraisal database 260 to the appraisal committee through the user interface 300. The appraisal committee inputs new appraisal values about every company to the risk appraisal database 275 based on renewed information about the company.

Fig. 6 is a flowchart showing a process of paying insurance coverage in the system according to the present invention. Where the company for investment draws a dishonored bill or goes into liquidation, the policyholder requests the central controller 200 to pay the insurance coverage through the user interface 300 (S600). By request, the central controller 200 identifies the policyholder ID number, the insurance period, etc. and transacts it at the calculation processor 230, and then transmits it to the sysop through the transaction interface 400. The sysop identifies the transmitted data and orders the central controller 200 to transmit the data of insurance fee and insurance coverage to the policyholder, using the transaction interface 400. Then, the central controller 200 transmits the data of insurance fee and insurance coverage to the policyholder through the user interface 300 (S610) . If insurance period expires, the central controller 200 notifies the user that the insurance coverage will not be paid (S620). During insurance period, the central controller 200 determines whether or not the company for investment draws a dishonored bill or goes into liquidation (S630) . If the company for investment does not draw a dishonored bill or go into liquidation, the central controller 200 notifies the user that reason (S640) . Oppositely, if the company for investment draws a dishonored bill or goes into liquidation, the insurance coverage is paid (S650) . In the case of paying the insurance coverage to the policyholder, the payments may be performed by conventional payments manners such as credit card, online remittance, telebanking, etc., or the policyholder may directly request the insurance coverage from the sysop by using a policy number. If the insurance coverage is paid to the policyholder, the sysop stores the fact of the payments in the insurance coverage payment database 290 through the transaction interface 400. In addition, where the contract conditions are not met, the central controller 200 transmits the fact that the insurance coverage payments are impossible and the reason thereof to the policyholder through the user interface 300. Cryptographic Authentication

The system can also provide additional security measures to ensure the integrity of data communications. One protocol is authenticating authorship of user communications, i.e., checking an attached ID or name and comparing it with those stored in the user database 255. Additionally, cryptographic protocols may be added to the authentication process. These protocols enhance the ability to authenticate the sender of a message and verify the integrity of the communication itself, proving that it has not been altered during transmission. Encryption can also prevent eavesdroppers from learning the contents of the communication. Such techniques shall be referred generally as cryptographic assurance methods and will include the use of both symmetric and asymmetric keys as well as digital signatures and hash algorithms.

The practice of using cryptographic protocols to ensure the authenticity of senders as well as the integrity of communications is well known in the art and need not be described here in detail. Any conventional cryptographic protocols such as those described in Bruce Schneier, Applied Cryptography Protocols, Algorithms, and Source Code In C (2d ed. 1996) , could be used in accordance with the present invention.

Fig. 7 is a flowchart illustrating an exemplary authentication procedure using symmetric key protocols in which the user and the central controller 200 share a key. Thus, both encryption and decryption of user communications are performed with the same key. This encryption may be implemented with an algorithm such as DES (U.S. Government standard, specified in FIPS PUB 46), or with any of several algorithms known in the art such as IDEA, Blowfish, RC4, RC2, and SAFER.

The user encrypts communications with an assigned symmetric key (S700), using the cryptographic processor 210 of user interface 300. The user communication is then transmitted to the cryptographic processor 210 of the central controller 200 (S710) . The cryptographic processor 210 extracts the user ID from the user communication (S720) , looks up the symmetric key of the user in the cryptographic key database 295 (S 730) , and decrypts user communications with this key (S740) . The cryptographic key database 295 contains algorithms and keys for encrypting, decrypting and/or authenticating communications. If the resulting communication is intelligible, then it is determined to have been encrypted by the same key, thus authenticating the user as the author of the message (S750) .

This procedure makes it difficult for unauthorized users to represent themselves as legitimate users. Without cryptographic procedures, an unauthorized user who obtained a sample communication from a legitimate user may be able to extract the user ID and then attach this ID number to unauthorized communications. When user communications are encrypted with a symmetric key, however, an unauthorized user obtaining a sample user communication only discovers the user's ID number, not the symmetric key. Without this key, the unauthorized user cannot create a user communication that will fool the central controller 200, since the unauthorized user cannot encrypt the communication the same way as the authorized user. The symmetric key protocol also ensures that the user communication has not been tampered with during transmission because alteration of the communication requires knowledge of the symmetric key. An encrypted user communication provides the user with greater anonymity.

Fig. 8 is a flowchart illustrating an exemplary asymmetric key protocol in which the user communication is encrypted with a private key and decrypted with a public key. Two such algorithms for asymmetric key protocols are RSA and DSA. The user encrypts the communication with a private key using the cryptographic processor of the user interface 300 (S800) , and transmits communication to the central controller 200 (S810) . The cryptographic processor 210 extracts the user ID (S820), and looks up the user's associated public key in the cryptographic key database 295 (S830) , and decrypts the communication with this public key (S840) . As before, if the communication is intelligible then the central controller 200 has authenticated the user (S850) . Again, unauthorized users obtaining the communication before it is received by the central controller 200 are unable to alter it undetectably since the intruders do not know the private key of the user. Unauthorized users may, however, be able to read the message if they obtain the public key of the user. Communication secrecy is preserved if the user encrypts the communication with the public key, requiring the intruder to know the user's private key to view the communication .

Although the preferred embodiments of the present invention have been disclosed for illustrative purpose, those skilled in the art will appreciate that various modifications, additions and substitutions are possible, without departing from the scope and spirit of the invention as disclosed in the accompanying claims.

Claims

WHAT IS CLAIMED IS:

1. A system for generating and executing an insurance policy for avoiding an investment risk in the venture company, comprising: interfaces through which data such as a user ID number, policy requirements, a term of insurance, a company for investment, etc. is received, data such as an insurance policy, transaction results, authentications, etc. is transmitted, and data of appraisal committee and company for investment is received and transmitted; databases storing the insurance policy, the user ID number, insurance rate; a central processor unit (CPU) which can communicate with the interfaces, calculate, search the databases, and perform storing order; a calculation processor calculating insurance rate and insurance coverage by transacting data of the databases; and an operating system.

2. The system for generating and executing an insurance policy for avoiding an investment risk in the venture company, further comprising a cryptographic processor supporting encoding and decoding of communications.

3. The system according to claim 1 or 2, wherein the databases include user data, appraisal factors data, insurance policy data, transaction data, each company appraisal value data, insurance rate, insurance fee and insurance coverage data.

4. The system according to one of claims 1 through 3, wherein the insurance policy include insurance policy requirement data, user ID data, credit card number data, insurance policy number data, insurance fee data, insurance coverage data, company for investment data, investment money data.

5. The system according to claim 1 through 2, further comprising a manner determining whether or not the company for investment draws a dishonored bill or goes into liquidation.

6. The system according to claim 1 through 2, further comprising a manner determining whether or not the insurance has expired.

7. A method for generating an insurance policy for avoiding an investment risk in the venture company on a computer network, comprising the steps of: receiving appraisal factors for an insurance policy from an appraisal committee through a user interface; storing appraisal factors about each company in databases along with the appraisal committee ID; appraising a risk of company by an appraisal model including the appraisal factors; calculating insurance rate based on the risk of company by a calculation processor and a CPU; and calculating insurance fee and insurance coverage according to each insurance rate.

8. A method for executing an insurance policy for avoiding an investment risk in the venture company on a computer network, comprising the steps of: calling a central controller by a user, using a communication network; identifying a user or assigning ID to the user; inputting data about settlement manner, company for investment, and investment money; notifying possibility of insuring to the user after the inputted company for investment and investment money are identified by central controller of a sysop; receiving contract conditions such as an insurance fee according to the company for investment and investment money, an selectable insurance period, an insurance coverage in the database, and transmitting it in the case of insuring; identifying policy requirements data inputted by the user at the CPU, and then allowing the user to correct the data in the case of a mistaken inputting, otherwise transmitting authentication information to the user; and allowing the user to confirm the authentication and transmitting data about the fact of confirming to the CPU, thereby finishing insuring.

9. The method according to claim 7, wherein the step of calculating insurance rate includes the steps of: storing the policy requirements inputted by the user in a policy requirements database, along with the user ID number; allowing the CPU to connect to a risk appraisal data base, based on the policy requirements such as investment money, an company for investment and an insurance period; allowing the CPU to search the insurance rate of the company for investment and to transact it at the calculation processor; transmitting transaction results to a sysop through a transaction interface and letting the sysop confirm it; and storing the calculated insurance fee and insurance coverage in the insurance fee and insurance coverage database after the user confirms the data confirmed by the sysop.

10. The method according to claim 7 or 9, where in the step of storing apprised risks in the risk appraisal database includes the steps of: allowing the sysop to input information about a company to an appraisal factors database through the transaction interface; allowing the central controller to transmit the information about the company and the appraisal factors to an appraisal committee through a user interface; inputting risks in the company appraised with reference to the information about the company and an appraisal standard by the appraisal committee using the user interface; and storing the inputted data in the risk appraisal database.

11. The method according to claim 7 or 10, wherein the risk appraisal database is renewed by the appraisal committee .

12. The method according to claim 7 or 10, further comprising the steps of: allowing the user to request that the central controller pays the insurance coverage through the user interface, where the company for investment draws a dishonored bill or goes into liquidation; allowing the central controller to confirm the policyholder ID number, the insurance period, etc., and the calculation processor to transact payments; transmitting transaction results to the sysop through the transaction interface, and allowing the sysop to identify transmitted data and to order the central controller to transmit the transaction results to the user through the transaction interface; allowing the central controller to transmit the results to the policyholder through the user interface; notifying the user that the insurance coverage will not be paid in the case that the insurance period expires, and determining whether or not the company for investment draws a dishonored bill or goes into liquidation in the case of during the insurance period; and notifying the user that reason in the case that the company for investment does not draw a dishonored bill or go into liquidation, and paying the insurance coverage in the case that the company for investment draws a dishonored bill or goes into liquidation.

13. The method according to claim 7, 9, 11 or 12, wherein the data transmission is performed through a cryptographic authentication.