Patent ID: 7752063

Claim:
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, wherein the mortality index is a weighted adjustment of a mortality rate for a covered region for a risk period, the weighted adjustment based on a demographic profile of a group covered for the mortality risk by the counterparty, and means for calculating the mortality index according to the following formula: MortalityIndex = ∑ j ⁢ ⁢ a j ⁢ ∑ i ⁢ ⁢ ( b m ⁢ w i ⁢ q i , j m + b f ⁢ w i ⁢ q i , j f ) where: a j is the weight for country j; b m is the gender weighting for males; b f is the gender weighting for females; w i is the weight for age band i; q i,j m is the observed deaths per 100,000 for males from country j and age band i; and q i,j f is the observed deaths per 100,000 for females from country j and age band i, wherein the first condition is satisfied if the mortality index for the covered region for the risk period is equal to or less than a threshold value and the second condition is satisfied if the mortality index is greater than the threshold value.