I will be in Chicago next week, invited by 冯润桓 (Runhuan Feng). On Monday, with Jan Dhaene and Marco Mirabella, we will give some short courses “on decentralized insurance and risk sharing“.
Then, we will attend the IME Congress 2024 (that will be held between July 9th and 11th).
Time to go to Leuven, for a workshop Foundations and Applications of Decentralized Risk Sharing. I will give a talk on Risk sharing on Irregular Networks, based on recent work with Philipp Ratz.
A second version of Collaborative Insurance Sustainability and Network Structure is now available on ArXiv,
The peer-to-peer (P2P) economy has been growing with the advent of the Internet, with well known brands such as Uber or Airbnb being examples thereof. In the insurance sector the approach is still in its infancy, but some companies have started to explore P2P-based collaborative insurance products (eg. Lemonade in the U.S. or Inspeer in France). The actuarial literature only recently started to consider those risk sharing mechanisms, as in Denuit and Robert (2021) or Feng et al. (2021). In this paper, describe and analyse such a P2P product, with some reciprocal risk sharing contracts. Here, we consider the case where policyholders still have an insurance contract, but the first self-insurance layer, below the deductible, can be shared with friends. We study the impact of the shape of the network (through the distribution of degrees) on the risk reduction. We consider also some optimal setting of the reciprocal commitments, and discuss the introduction of contracts with friends of friends to mitigate some possible drawbacks of having people without enough connections to exchange risks.
