Computer system for processing third party computer system data including geographic region data

Abstract

A computer system for processing risk mitigation data includes calculating line-of-business payout factors for computing losses associated with one or more instruments such that the losses substantially replicate industry losses, and is configured to determine payout amounts based on a value of an event index based on a load factor and, for at least two lines of business, a loss index by individual geographic region, and payout factors for selected combinations of individual geographic region and line of business for at least one of one or more risk classes, each risk class representing one or more risks, and reported industry loss data.

What is claimed is: 
     
         1 . A computer system for processing risk mitigation data including calculating line-of-business payout factors for computing losses associated with one or more instruments such that the losses substantially replicate industry losses, comprising:
 one or more data storage devices storing data including individual geographic region data and line-of-business industry loss data;   one or more computer processors;   a memory in communication with the one or more computer processors and storing program instructions which, when executed by the one or more computer processors, cause the one or more computer processors to:
 receive reported industry loss data for combinations of individual geographic region and line of business, for at least two lines of business, for a covered event; 
 using an event index, a value of the event index being based on a load factor and, for at least two lines of business, a loss index by individual geographic region, and payout factors for selected combinations of individual geographic region and line of business for at least one of one or more risk classes, each risk class representing one or more risks, and the reported industry loss data, determine payout amounts for the covered event; 
 compute loss data associated with one or more instruments based on the determined payout amounts; and 
 output loss data for transmission to one or more third party systems. 
   
     
     
         2 . The computer system of  claim 1 , wherein the memory further stores program instructions which cause the one or more computer processors to determine payout amounts using an event index equal to a product of the load factor and the following expression for the at least two lines of business: 
       
         
           
             
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         wherein:
 l is the reported industry loss data by individual geographic region and line of business; 
 s indicates the individual geographic region; 
 p indicates that the line of business is personal lines; 
 c indicates that the line of business is commercial lines; 
 Π and χ are the payout factors for selected combinations of individual geographic region and line of business for the at least one of said one or more risk classes. 
 
       
     
     
         3 . The computer system of  claim 1 , wherein the memory further stores program instructions which cause the one or more computer processors to determine a coverage period associated with the risk mitigation data, and wherein said payout factors are adjustable during the coverage period and are determined based on the individual geographic region data and the line of business industry loss data for an event occurring during the coverage period of the risk mitigation data. 
     
     
         4 . The computer system of  claim 1 , wherein the memory further stores program instructions which cause the one or more computer processors to calculate losses based on one or more of aggregate losses and occurrence losses. 
     
     
         5 . The computer system of  claim 1  wherein said one or more risk classes include a plurality of risk classes each representing at least one of hurricane, earthquake, and tornado and hailstorm natural catastrophe risks. 
     
     
         6 . The computer system of  claim 5 , wherein the memory storing program instructions which cause the one or more computer processors to determine the one or more risk classes comprises the memory storing further program instructions which cause the one or more computer processors to categorize the natural catastrophe risks represented by each of the plurality of risk classes by region or by time period. 
     
     
         7 . The computer system of  claim 5 , wherein the memory further stores program instructions which cause the one or more computer processors to set one of the payout factors to zero responsive to receipt of data indicative of an affected covered area damaged by an event failing to meet one or more conditions for qualifying severe weather in the affected covered area. 
     
     
         7 . The computer system of  claim 1 , wherein the memory further stores program instructions which cause the one or more computer processors to determine an event index value based on at least one class of risk defined at a sub-geographic level, using one or more trigger criteria. 
     
     
         8 . The system of  claim 1 , wherein the memory storing program instructions which cause the one or more computer processors to relate the one or more risk classes to the individual geographic region data and the line-of-business industry loss data comprises the memory storing further program instructions which cause the one or more computer processors to combine parametric factors with the payout factors to define geographic region payout factors for selected lines of business. 
     
     
         9 . The computer system of  claim 1 , wherein the load factor is a property load factor. 
     
     
         10 . The computer system of  claim 9 , wherein the property load factor is a motor vehicle load factor. 
     
     
         11 . A computer-implemented method for processing data in connection with risk mitigation data including calculating line-of-business payout factors for computing losses such that the losses substantially replicate industry losses, comprising:
 accessing, by one or more computer processors, from one or more data storage devices, reported industry loss data for combinations of individual geographic region and line of business, for at least two lines of business, for a covered event;   determining, by the one or more computer processors, using an event index, a value of the event index being based on a load factor and, for the at least two lines of business, a loss index by individual geographic region, and payout factors for selected combinations of individual geographic region and line of business for at least one of one or more risk classes, each risk class representing one or more risks, and the reported industry loss data, payout amounts for the covered event;   computing by the one or more computer processors loss data associated with one or more instruments based on the determined payout amounts; and   outputting by the one or more computer processors loss data for transmission to one or more third party systems.   
     
     
         12 . The computer-implemented method of  claim 11 , wherein the event index is equal to a product of the load factor and the following expression for the at least two lines of business: 
       
         
           
             
               ( 
               
                 
                   ∑ 
                   s 
                 
                  
                 
                   
                     ⊓ 
                     s 
                   
                    
                   
                     I 
                     s 
                     P 
                   
                   + 
                   
                     
                       ∑ 
                       s 
                     
                      
                     
                       
                         X 
                         s 
                       
                        
                       
                         I 
                         s 
                         C 
                       
                     
                   
                 
               
               ) 
             
           
         
         where:
 l is the reported industry loss data by individual geographic region and line of business; 
 s indicates the individual geographic region; 
 p indicates that the line of business is personal lines; 
 c indicates that the line of business is commercial lines; 
 Π and χ are the payout factors for selected combinations of individual geographic region and line of business for the at least one of said one or more risk classes. 
 
       
     
     
         13 . The computer-implemented method of  claim 11 , wherein the determining the payout amounts further comprises combining parametric factors with the payout factors to define geographic region payout factors for the one or more lines of business. 
     
     
         14 . The computer-implemented method of  claim 11 , further comprising parametrically adjusting, by the one or more computer processors, the payout factors for pre-specified geographical regions. 
     
     
         15 . The computer-implemented method of  claim 11 , further comprising modifying the event index using one or more trigger criteria related to one or more classes of risk at a sub-geographic level. 
     
     
         16 . A computer system for processing data in connection with risk mitigation data including calculating line-of-business payout factors for computing losses associated with one or more instruments such that the losses substantially replicate industry losses, comprising:
 one or more data storage devices storing data including individual geographic region data and line-of-business industry loss data;   one or more computer processors;   a memory in communication with the one or more computer processors and storing program instructions which, when executed by the one or more computer processors, cause the one or more computer processors to:
 receive, from one or more third party computer systems, reported industry loss data for combinations of individual geographic region and line of business, for at least two lines of business, for a covered event; 
 using an event index, a value of the event index being based on a product of a load factor and, for at least two lines of business and at least two geographic regions, sums of products of payout factors for combinations of line of business and geographic region and the reported industry loss data, determine payout amounts for the covered event; 
 compute loss data associated with one or more instruments based on the determined payout amounts; and 
 output loss data for transmission to one or more third party computer systems. 
   
     
     
         17 . The system of  claim 16 , wherein the load factor comprises a property load factor. 
     
     
         18 . The system of  claim 16 , wherein the load factor comprises a motor vehicle load factor. 
     
     
         19 . The system of  claim 16 , wherein the one or more computer processors storing program instructions to relate the one or more risk classes to the individual geographic region data and the line-of-business industry loss data further comprises the one or more computer processors storing program instructions to combine parametric factors with the payout factors to define geographic region payout factors for selected lines of business. 
     
     
         20 . The system of  claim 16 , wherein said one or more risk classes include a plurality of risk classes each representing at least one of hurricane, earthquake, and tornado and hailstorm natural catastrophe risks.