Method and system for securitizing mortality risk
First Claim
1. A computer system, comprising:
- a means for generating records of a securitizing transaction in which coverage of a mortality risk is provided to a counterparty by an issuer, including recording the receipt of a premium from the counterparty;
a means for generating records of an issuance of a risk instrument from the issuer to an investor, including recording the receipt of an investment by the issuer from the investor where the risk instrument provides a contingent return of the investment to the investor;
a means for determining whether a first condition is satisfied, a second condition is satisfied or if neither the first nor the second conditions are satisfied, where the first and second conditions are related to the mortality risk; and
a means for determining the amount of the contingent return of the investment to the investor and the amount of an event payment to the counterparty according to the determined conditions, where the amount of the contingent return or the event payment can be zero.
2 Assignments
0 Petitions
Accused Products
Abstract
Methods and apparatus, including computer systems, are provided for securitizing a mortality risk. A premium is received by an issuer from a counterparty, and the issuer provides coverage of a mortality risk to the counterparty. An investment is received by the issuer from an investor, and the issuer provides a risk instrument to the investor. The risk instrument provides a contingent return of the investment to the investor, where if a first condition is satisfied then the entire investment is returned, if a second condition is satisfied then none of the investment is returned, and if neither the first nor the second conditions are satisfied then a portion of the investment is returned. The first and second conditions are related to the mortality risk.
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Citations
37 Claims
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1. A computer system, comprising:
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a means for generating records of a securitizing transaction in which coverage of a mortality risk is provided to a counterparty by an issuer, including recording the receipt of a premium from the counterparty;
a means for generating records of an issuance of a risk instrument from the issuer to an investor, including recording the receipt of an investment by the issuer from the investor where the risk instrument provides a contingent return of the investment to the investor;
a means for determining whether a first condition is satisfied, a second condition is satisfied or if neither the first nor the second conditions are satisfied, where the first and second conditions are related to the mortality risk; and
a means for determining the amount of the contingent return of the investment to the investor and the amount of an event payment to the counterparty according to the determined conditions, where the amount of the contingent return or the event payment can be zero. - View Dependent Claims (2, 3, 4, 5, 6, 7)
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8. A method of securitizing a mortality risk, comprising:
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receiving a premium from a counterparty;
providing coverage of a mortality risk to the counterparty;
receiving an investment from an investor; and
providing a risk instrument to the investor, the risk instrument providing a contingent return of the investment to the investor, where if a first condition is satisfied then the entire investment is returned, if a second condition is satisfied then none of the investment is returned, and if neither the first nor the second conditions are satisfied then a portion of the investment is returned, and where the first and second conditions are related to the mortality risk. - View Dependent Claims (9, 10, 11, 12, 13, 14, 15, 16, 17)
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18. A method for securitizing a mortality risk, comprising:
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receiving a premium from a counterparty;
providing coverage of a mortality risk to the counterparty;
receiving an investment from an investor; and
providing a risk instrument to the investor, the risk instrument providing a contingent return of the investment to the investor, where;
if a mortality index for a covered region for a risk period is less than a first threshold value, then the investor is provided a return of the entire investment;
if the mortality index for the covered region for the risk period is greater than a second threshold value, then the counterparty is provided the entire investment; and
if the mortality index for the covered region for the risk period is greater than the first threshold value and less than the second threshold value, then the investor and the counterparty are each provided a share of the investment. - View Dependent Claims (19, 20, 21, 22, 23, 24, 25)
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26. A system for securitizing a mortality risk, comprising:
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a reinsurance contract providing coverage for a mortality risk from an issuer to a counterparty in exchange for payment of a premium from the counterparty to the issuer; and
one or more risk instruments issued from the issuer to one or more investors in exchange for receipt of an investment from an investor, the risk instrument providing a contingent return of the investment to the investor, where if a first condition is satisfied then the entire investment is returned, if a second condition is satisfied then none of the investment is returned, and if neither the first nor the second conditions are satisfied then a portion of the investment is returned, and where the first and second conditions are related to the mortality risk. - View Dependent Claims (27, 28, 29, 30)
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31. A method of securitizing a mortality risk, comprising:
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establishing one or more risk classes, each risk class representing a mortality risk and each risk class being issuable as risk instruments providing a return on an investment, the amount of the return for a risk instrument being contingent upon the occurrence of a trigger event for the corresponding represented mortality risk; and
issuing one or more risk instruments of a first risk class of the one or more risk classes. - View Dependent Claims (32, 33, 34, 35, 36, 37)
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Specification