By a News Reporter-Staff News Editor at Politics & Government Week -- From Washington, D.C., VerticalNews journalists report that a patent application by the inventors HUANG, He Yuan (Beijing, CN); DUAN, Ning (Beijing, CN); WANG, Zhi Hu (Beijing, CN); LI, Kai (Shanghai, CN), filed on October 15, 2015, was made available online on April 27, 2017.

No assignee for this patent application has been made.

News editors obtained the following quote from the background information supplied by the inventors: "The present invention relates to detecting fraud, and more specifically, to detecting fraud in the usage-based automotive insurance model by using contextual data to check on a driver's representations for user-based coverage.

"Usage-Based Insurance (UBI), also known as Pay As You Drive (PAYD) and Pay How You Drive (PHYD) and Mile-Based Auto Insurance (MBAI), is a type of vehicle insurance in which the cost is dependent upon such parameters as the type of vehicle used, time, place, distance of travel, and driving behavior. The simplest form of the UBI model bases the insurance cost simply on number of miles driven, but the UBI model also includes other schemes in which coverage is based on additional data collected from the vehicle, including, for example, information on speed, time of day, historic riskiness of the road, and driving actions, as well as the distance or time travelled.

"In more sophisticated versions of the UBI model vehicle data is transmitted to an insurance processing center (e.g., telematic usage-based insurance), using an on-board telematic device connected, for example, to the vehicle's OnBoard Diagnostic (OBD-II) port, which has been available on automobiles built after 1996. At least one insurance carrier has experimented under the UBI model with using an app on the user's smart phone for transmitting vehicular data to the insurance company's processing center. Another carrier uses the transmission capabilities available to OnStar subscribers.

"FIG. 1 shows automobile/driver 102 transmitting trip data under the UBI model to insurance processing center 104 via telematic device 106. The precise mechanism and path for transmitting the trip data to the insurance processing center is not important in the context of the present invention, since various mechanisms could be used, such as a mobile communication network, a satellite network, or direct sight networks that possibly interface with the Internet or similar known transmission mechanisms. Additionally, the present invention could be wholly or partially implemented as a cloud service.

"The present inventors have recognized that, to get a lower insurance fee, a driver may have a motivation to provide faked data using various possible tools/techniques. For example, a fraudster might use a tool that has been pre-set with trip data intended to demonstrate good driving behavior. When driving, the tool would randomly send the pre-set faked trip to the insurance processing center. The overall profiling of the driver's driving behavior would thereby appear to be very good, and he or she could continue to get a significant discount on the insurance fee.

"Fraud detection has been used in banking and insurance industries. Banking fraud is typically about transactions, and insurance fraud is typically about claims. However, this potential fraud in the UBI model is about fraudulently obtaining lower insurance fees, and the context of this type of fraud is very different from that of banking or insurance fraud. Moreover, the data analyzing the UBI context is geospatial data, which is very different from the data analyzed in conventional banking/insurance fraud detection scenarios.

"Also, since UBI is itself a relatively new business model, new fraud techniques can be expected to evolve and new fraud detection techniques would need to evolve to address future potential fraud in the UBI insurance model. Thus, the present invention can be viewed as representing a technical solution to a technical problem that was not previously recognized in this recent technology-based UBI model."

As a supplement to the background information on this patent application, VerticalNews correspondents also obtained the inventors' summary information for this patent application: "According to an embodiment of the present invention, a fraud detection technique uses contextual data associated with trip data reports as basis for a reality check of the received trip report data from specific drivers, in view of potential fraud.

"In an exemplary embodiment, the reported driving conduct of specific drivers under tough contextual conditions is compared with statistical norms of other drivers under similar tough contextual conditions, with fraud being considered as possible if the specific driver's data in tough conditions indicate driving conduct significantly better than the statistical norms.

"When such better driving conduct is detected, the driver can be identified in an output display format to insurance investigators to permit more specific evaluation, investigation, and possible action."

For additional information on this patent application, see: HUANG, He Yuan; DUAN, Ning; WANG, Zhi Hu; LI, Kai. Method and System to Determine Auto Insurance Risk. Filed October 15, 2015 and posted April 27, 2017. Patent URL: http://appft.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PG01&p=1&u=%2Fnetahtml%2FPTO%2Fsrchnum.html&r=1&f=G&l=50&s1=%2220170109827%22.PGNR.&OS=DN/20170109827&RS=DN/20170109827

Keywords for this news article include: Patents, Legal Issues.

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2017, NewsRx LLC

Atlanta-based insurance software company, trusted by more than 110 carriers including 19 of the top 20 North American annuity providers, joins Solen's permanent capital portfolio

SALT LAKE CITY--(BUSINESS WIRE)--
Solen Software Group, a permanent home for exceptional software companies, today announced the acquisition of Cooperative Technologies, Inc., an Atlanta-based provider of annuity and life insurance replacement data software. Cooperative Technologies' 1035 exchange automation and list bill reconciliation solutions help insurance carriers and broker-dealers automate back-office workflows and meet standards-based reporting requirements.

Mission-Critical Insurance Software Built on More Than 30 Years of Industry Expertise

Founded by Vaughan Lund in 1990, Cooperative Technologies has spent more than three decades helping insurance carriers and broker-dealers across North America streamline annuity and life insurance replacements. The company's proprietary products, including 1035YellowPages Web Service, 1035YellowPages Web Site, and CT ListBill, deliver 1035 exchange automation and list bill reconciliation that keep mission-critical back-office operations running accurately and at scale.

Cooperative Technologies serves more than 110 insurance carriers, including 19 of the top 20 annuity providers in North America. The company's depth of industry knowledge and carrier relationships have made it a trusted infrastructure provider across one of the most compliance-sensitive sectors in financial services. In 2025, Insurance CIO Outlook recognized Cooperative Technologies as the Top Automated Insurance Back Office Operations Solution. Headquartered in Atlanta, Georgia, the company has built a long-standing reputation as a reliable, long-term technology partner to the insurance industry.

Why Cooperative Technologies Chose a Permanent Capital Partner

"We have always run Cooperative Technologies as a long-term business, not a short-term opportunity. Solen operates the same way. Their commitment to keeping businesses intact, investing in the team, and staying close to customers made this the right decision. I am proud of what this company has built for the insurance industry, and I am confident it is in good hands," said Vaughan Lund, President of Cooperative Technologies.

Solen's Long-Term Partnership Approach to Mission-Critical Software

“Cooperative Technologies is exactly the kind of vertical software business we look to partner with,” said Sam Clayton, Investment Partner at Solen Software Group. “Vaughan has built a company that helps insurance carriers and broker dealers navigate the complex data and workflows involved in annuity and life insurance replacements. With more than 110 carrier relationships and over 30 years of industry experience, Cooperative Technologies has established a strong position in a specialized market. We are proud to be the permanent home for what Vaughan and the Cooperative Technologies team have built, and we look forward to investing in its continued growth.”

Cooperative Technologies will continue operating with autonomy, with Solen supporting the business through long-term ownership and optional shared services, allowing the Cooperative Technologies team to remain focused on its insurance carrier customers and the continued development of its 1035 exchange and list bill platform.

About Cooperative Technologies

Cooperative Technologies, Inc. is an Atlanta, Georgia-based provider of annuity and life insurance replacement data software. Founded in 1990, the company's products, including 1035YellowPages Web Service, 1035YellowPages Web Site, and CT ListBill, help more than 110 insurance carriers and broker-dealers across North America automate 1035 exchanges and list bill reconciliation. Learn more at https://www.cooperativetechnologies.com/.

About Solen Software Group

Solen Software Group is a permanent capital acquirer and operator of resilient, mission-critical software businesses serving enterprise B2B markets. Solen partners with founders to give the companies they built a permanent home, preserving the values, teams and customer relationships that made each business successful. Solen operates without predefined exit timelines and invests for the long term. Learn more at solensoftwaregroup.com.

Solen has offices in Salt Lake City, New York City, Toronto, Lisbon, São Carlos and São Paulo.

Forward-looking statements

This press release may contain forward-looking statements that are subject to risks and uncertainties. Actual results may differ materially from those expressed or implied.

View source version on businesswire.com: https://www.businesswire.com/news/home/20261019247444/en/

Media Contact

Press@solensoftwaregroup.com

Source: Solen Software Group