Talk on collaborative insurance, unfairness and discrimination

Monday, I will be giving a short course at the workshop on Decentralized Insurance and Risk Sharing (SAC 161), in Chicago

  • Decentralized Finance and Blockchain: Implications for the Insurance Industry, by Marco Mirabella
  • Decentralized risk sharing: definitions, properties, and characterizations, by Jan Dhaene
  • Collaborative insurance, unfairness, and discrimination, by Arthur Charpentier
  • Decentralized insurance: bridging the gap between industry practice and academic theory, by Runhuan Feng

My slides are available online.

In this course, we will get back to mathematical properties of risk sharing on networks, with reciprocal contrats. We will discuss conditions about stochastic dominance, proving that policyholers might have interest in sharing risks with “friends”.
Then, we will try to adress fairness issues, for such risk sharing mechanisms. If fairness has been recently intensively studied, either through group or individual fairness, there are yet not much litterature about fairness on networks. It is important to adress those issues, since perceived discrimination is usually associated with networks. We will see why the topology of the network is important, both to design peer-to-peer schemes to share risks, but also to see if perceived discrimination is associated with global disparate treatement.