Financial activity concerning tropical weather events

• US 20080133430A1
• Filed: 10/31/2007
• Published: 06/05/2008
• Est. Priority Date: 12/21/2004
• Status: Active Grant

• Current Assignee: Weather RISK Solutions LLC
• Original Assignee: Weather RISK Solutions LLC
• Inventors: Horowitz, Kenneth A.
• Granted Patent: US 7,783,544 B2
• Time in Patent Office: Days
• US Class Current: 705/36R
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis

Abstract

A graphical user interface for a financial activity network that includes a central managing system connected to a plurality of participant terminals. Rules governing operation of the financial activity are stored for future reference. A participant provides investment information such as a map location for the predicted strike by the natural event and, optionally, one or more secondary parameters relating to the natural event, such as the time interval between the time of investment and the time of all event strike and/or the severity of the event strike according to an established scale. The graphical user interface provides the user with the ability to select options and view data from a screen display, with recalculations of data being displayed on an ongoing basis, reflecting the user'"'"'s current selections.

Claims

1. A method for conducting a financial activity between a provider and at least two participants, based on a tropical weather event, comprising:

the provider defining a plurality of geographic regions for which the financial activity is to occur and in which a future tropical weather event may occur;

the provider receiving tropical weather event information from an external independent information source of such information;

the provider providing for each region, an index having an index value varying in response to one or more tropical weather events;

the provider providing financial activity information to the participants, including information relating to the tropical weather event information, the index, and the geographic regions; and

the provider presenting to the participants at least one derivative product traded between the participants for each of the regions, the derivative product having a value that varies in response to the index value, and settled based on at least one of the external tropical weather event information and the index information.

2. The method according to claim 1 wherein the step of presenting to the participants a plurality of geographic regions for which the financial activity is to occur includes the step of presenting a null region, available for trading, designating no tropical weather event in any of the plurality of geographic regions.

3. The method according to claim 1 further comprising the step of the provider distributing a predetermined minimum amount of funds to qualifying participants qualified to receive funds based on the matching outcome.

4. The method according to claim 1 wherein the derivative product comprises one of a futures contract, an options contract or an option on futures contract.

5. The method according to claim 1 wherein the index value varies in response to one of said estimates, said observed data and said insurance claims pertaining to damage relating to the one or more tropical weather events.

6. The method according to claim 1 wherein the derivative product is settled based on at least one of the external tropical weather event information and the index information.

7. The method according to claim 1 wherein a third party determines settlement of the derivative product based on at least one of the external tropical weather event information and the index information.

8. A method for conducting a financial activity between a provider and at least two participants, based on a tropical weather event, comprising:

the provider receiving tropical weather event information from an external independent information source of such information;

the provider receiving index information from an external independent information source of such information, the index information including an index having an index value varying in response to one or more tropical weather events;

the provider providing financial activity information to the participants, including information relating to the tropical weather event information, and a plurality of geographic regions for which the financial activity is to occur and in which a future tropical weather event may occur;

the provider presenting to the participants at least one derivative product traded between the participants, the derivative product having a value that varies in response to the index value, and settled based on at least one of the external tropical weather event information and the index information.

9. The method according to claim 8 wherein the step of presenting to the participants at least one derivative product comprises the step of presenting to the participants at least one derivative product traded between the participants for each of a plurality of geographic regions.

10. The method according to claim 8 further comprising the step of the provider distributing a predetermined minimum amount of funds to qualifying participants qualified to receive funds based on the matching outcome.

11. The method according to claim 8 wherein the provider receives index values for each of the geographic regions.

12. The method according to claim 8 wherein the derivative product comprises one of a futures contract, an options contract or an option on futures contract.

13. A system for conducting a financial activity based on a tropical weather event, comprising:

a financial activity module for facilitating financial activity between a provider and at least two participants, for defining a plurality of geographic regions for which the financial activity is to occur and in which a future tropical weather event may occur, for receiving tropical weather event information from an external independent information source of such information and for providing financial activity information to the participants, including information relating to the tropical weather event information and the geographic regions;

at least one communication module for communication between the financial activity module and an external independent information source, for receiving the tropical weather event information from at least one external independent information source;

the financial activity module also providing index information including an index having an index value varying in response to one or more tropical weather events; and

the financial activity module presenting to the participants at least one derivative product to be traded between the participants, for a plurality of geographic regions, the derivative product having a value that varies in response to the index value, and which is settled based on at least one of the tropical weather event information and the index information.

14. The system according to claim 13 wherein the communication module presents a null region, available for trading, designating no tropical weather event in any of the plurality of geographic regions.

15. The system according to claim 13 further comprising a distribution module for distributing funds to at least one of the participants, based on settlement of the derivative product.

16. The system according to claim 13 wherein the financial activity module provides index values for each of the geographic regions.

17. The system according to claim 13 wherein the derivative product comprises one of a futures contract, an options contract or an option on futures contract.

18. The system according to claim 13 wherein the index value varies in response to one of said estimates of damage, said observed data pertaining to said damage, or said insurance claims based on damage relating to the one or more tropical weather events.

19. A system for conducting a financial activity based on a tropical weather event, comprising:

a financial activity module for facilitating financial activity between a provider and at least two participants, for receiving tropical weather event information from an external independent information source of such information and for providing financial activity information to the participants, including information relating to the tropical weather event information and a plurality of geographic regions for which the financial activity is to occur and in which a future tropical weather event may occur;

at least one communication module for communication between the financial activity module and an external independent information source for receiving the tropical weather event information from at least one external independent information source;

the financial activity module providing index information including an index having an index value varying in response to one or more tropical weather events;

the financial activity module presenting to the participants at least one derivative product to be traded between the participants, for a plurality of geographic regions, the derivative product having a value that varies in response to the index value; and

the at least one communication module receiving trading information relating to the derivative product traded between the participants and further providing communication between the financial activity module and the participants providing an indication of a matching outcome to the participants based on a comparing of the traded information to at least one of the tropical weather event information and the index information.

20. The system according to claim 19 wherein the communication module presents a null region, available for trading, designating no tropical weather event in any of the plurality of geographic regions.

21. The system according to claim 19 wherein derivative products are provided for each of the geographic regions, each having values depending at least in part on index values for each of the geographic regions.

22. The method according to claim 19 wherein the derivative product comprises one of a futures contract, an options contract or an option on futures contract.

23. A system for conducting a financial activity based on a tropical weather event, comprising:

a financial activity module for facilitating financial activity between a provider and at least two participants, for receiving tropical weather event information from an external independent information source of such information and for providing financial activity information to the participants, including information relating to the tropical weather event information and a plurality of geographic regions for which the financial activity is to occur and in which a future tropical weather event may occur;

at least one communication module for communication between the financial activity module and an external independent information source for receiving the tropical weather event information and for receiving index information including an index having an index value varying in response to one or more tropical weather events;

the financial activity module presenting to the participants at least one derivative product to be traded between the participants, for a plurality of geographic regions, the derivative product having a value that varies in response to the index value, and settled based upon at least one of the tropical weather event information and the index information.

24. The system according to claim 23 wherein the communication module presents a null region, available for trading, designating no tropical weather event in any of the plurality of geographic regions.

25. The system according to claim 23 wherein derivative products are provided for each of the geographic regions, with values depending at least in part on index values for each of the geographic regions.