Patent ID: 7711634
Filing Date: 2010-05-04
Classification: G06Q

Abstract:
1. A method of securitizing natural catastrophe risk, implemented on an electronic terminal at a reinsurer, comprising: establishing one or more risk classes at the electronic terminal of the reinsurer, each risk class representing one or more natural catastrophe risks, each risk class being recurringly issuable from the electronic terminal of the reinsurer as risk instruments providing a return on an investment, the amount of the return for a risk instrument being reduced upon the occurrence of a realization event for the corresponding represented natural catastrophe risk; and issuing from the electronic terminal at the reinsurer, a first collection of risk instruments of a first risk class of the one or more risk classes, wherein the realization event for a given risk class is defined as an occurrence of an event meeting a predetermined impact threshold, the occurrence of the event meeting predetermined impact threshold is determined according to an index of physical parameters issued by a neutral party, and said physical parameters are related to but separate from catastrophic loss.