Risk mitigation for affinity groupings
First Claim
1. A computer-implemented method, the method comprising:
- dividing or segmenting, via one or more processors of a securities provider executing functions of a policy grouping unit, and based upon risk levels, multiple insurance policies into multiple affinity groups, the multiple insurance policies held by an insurance provider;
creating, by the one or more processors of the securities provider executing functions of an instrumentation unit, a set of financial instruments corresponding to a particular affinity group of the multiple affinity groups, the particular affinity group having a particular level of risk, and each financial instrument included in the set of financial instruments indicative of a respective assumption of risk for the particular affinity group over a time interval;
procuring, by the one or more processors of the securities provider executing functions of a procurement unit, one or more other parties as investors in at least a portion of the set of financial instruments, thereby securitizing at least a portion of the particular level of risk associated with the insurance policies of the particular affinity group, wherein procuring the one or more parties as investors comprises;
auctioning, via an electronic or communications network, an opportunity to invest in the at least the portion of the set of financial instruments, at least in part by causing computing devices of a plurality of potential investors to generate displays indicating the at least the portion of the set of financial instruments, wherein the plurality of potential investors includes the one or more other parties;
receiving, via the electronic or communications network and from the computing devices of the plurality of potential investors, one or more bids for the opportunity to invest in the at least the portion of the set of financial instruments; and
accepting at least one bid of the one or more received bids, the accepted at least one bid submitted by the one or more other parties; and
distributing, by the one or more processors of the securities provider, at least a portion of profit or loss incurred by respective insurance policies included in the particular affinity group over the particular policy period to the one or more other parties in accordance with terms of the set of financial instruments.
1 Assignment
0 Petitions
Accused Products
Abstract
Multiple insurance policies may be grouped or segmented into affinity groups, each of which corresponds to a respective risk level. A set of financial instruments corresponding to a particular affinity group of insurance policies may be created and automatically offered for auction, e.g., online. Bids received from potential investors may indicate, e.g., percentage of assumed risk, percentage of profit sharing, percentage of shared loss, service or commission fee amounts, etc. that are acceptable to the bidding party. The party or parties submitting the winning bids may be awarded investment in the financial instruments and may enter into respective financial agreements with the financial instrument provider, thereby securitizing the risk associated with the insurance policies. Profits and/or losses generated by the insurance policies of the affinity group corresponding to the financial instruments may be distributed in accordance with the terms of the financial agreement.
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Citations
20 Claims
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1. A computer-implemented method, the method comprising:
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dividing or segmenting, via one or more processors of a securities provider executing functions of a policy grouping unit, and based upon risk levels, multiple insurance policies into multiple affinity groups, the multiple insurance policies held by an insurance provider; creating, by the one or more processors of the securities provider executing functions of an instrumentation unit, a set of financial instruments corresponding to a particular affinity group of the multiple affinity groups, the particular affinity group having a particular level of risk, and each financial instrument included in the set of financial instruments indicative of a respective assumption of risk for the particular affinity group over a time interval; procuring, by the one or more processors of the securities provider executing functions of a procurement unit, one or more other parties as investors in at least a portion of the set of financial instruments, thereby securitizing at least a portion of the particular level of risk associated with the insurance policies of the particular affinity group, wherein procuring the one or more parties as investors comprises; auctioning, via an electronic or communications network, an opportunity to invest in the at least the portion of the set of financial instruments, at least in part by causing computing devices of a plurality of potential investors to generate displays indicating the at least the portion of the set of financial instruments, wherein the plurality of potential investors includes the one or more other parties; receiving, via the electronic or communications network and from the computing devices of the plurality of potential investors, one or more bids for the opportunity to invest in the at least the portion of the set of financial instruments; and accepting at least one bid of the one or more received bids, the accepted at least one bid submitted by the one or more other parties; and distributing, by the one or more processors of the securities provider, at least a portion of profit or loss incurred by respective insurance policies included in the particular affinity group over the particular policy period to the one or more other parties in accordance with terms of the set of financial instruments. - View Dependent Claims (2, 3)
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4. A system, comprising:
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one or more persistent memories storing indications of multiple insurance policies held by an insurance provider; one or more communication interfaces configured to communicate with remote devices via one or more electronic or communications networks; one or more processors; and one or more non-transitory, computer-readable media storing instructions that, when executed by the one or more processors, cause the system to; execute functions of a policy grouping unit that divides or segments, based upon risk levels, the multiple insurance policies into multiple affinity groups and store respective indications of the multiple affinity groups on the one or more persistent memories; execute functions of an instrumentation unit that creates a set of financial instruments corresponding to a particular affinity group of the multiple affinity groups and store respective indications of the set of financial instruments on the one or more persistent memories, the particular affinity group having a particular level of risk, and each financial instrument included in the set of financial instruments indicative of a respective assumption of risk for the particular affinity group over a particular policy period; execute functions of a procurement unit that procures, via the one or more communications interfaces and the one or more electronic communications networks, one or more other parties for at least a portion of the set of financial instruments, thereby securitizing at least a portion of the particular level of risk associated with the insurance policies included in the particular affinity group, wherein procuring the one or more parties as investors comprises; auctioning, via the electronic or communications network, an opportunity to invest in the at least the portion of the set of financial instruments, at least in part by causing computing devices of a plurality of potential investors to generate displays indicating the at least the portion of the set of financial instruments, wherein the plurality of potential investors includes the one or more other parties; receiving, via the electronic or communications network and from the computing devices of the plurality of potential investors, one or more bids for the opportunity to invest in the at least the portion of the set of financial instruments; and accepting at least one bid of the one or more received bids, the accepted at least one bid submitted by the one or more other parties; and distribute at least a portion of profit or loss incurred by respective insurance policies included in the particular affinity group over the particular policy period to the one or more parties in accordance with a set of terms of the set of financial instruments. - View Dependent Claims (5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20)
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Specification