Insurer Patents Risk Management Method

Aviva USA has received government protection for its rights to a technique for backing minimum guarantees sold with indexed universal life insurance policies.

The U.S. Patent and Trademark Office has issued a patent to Aviva USA, Des Moines, Iowa, a unit of Aviva P.L.C., London, for a process that allows for “Maximization of a Hedged Investment Budget for an Index-Linked Insurance Product.”

The technique can hold down the cost of offering minimum interest rate guarantees, according to Aviva USA.