Risk Management Solutions has conducted the expert risk analysis for an innovative new catastrophe bond that provides Swiss Re with $75 million of coverage against higher-than-expected mortality rates in the U.S. and U.K. until the end of 2013.

This is the first time an excess mortality securitization has been structured using a probabilistic catastrophe model rather than simply relying on historical data and is unique in covering an existing event ― the H1N1 flu pandemic ― that already poses an insurance risk.

RMS said pandemic flu risk was assessed using the RMS® Infectious Disease Model, which was first released in 2007. A specific model for the ongoing H1N1 pandemic was also incorporated, taking account of possible mutations and antiviral resistance.

Issued by Vita Capital IV, a Cayman Island special purpose vehicle, the securities provide fully collateralized coverage against all excess mortality risk including infectious disease, terrorism, and earthquake.