This paper claims to contribute to the understanding of #peertopeer, #decentralized distributed #insurance as a viable alternative to traditional insurance models, offering potential solutions to address market consolidation and enhance #financialinclusion through #risksharing. Further exploration and empirical studies are necessary to validate the viability and long-term implications of this emerging paradigm in the #insuranceindustry.
"#risksharing is one way to pool risks without the need for a #thirdparty. To ensure the attractiveness of such a system, the rule should be accepted and understood by all participants. A desirable risk-sharing rule should fulfill #actuarial fairness and #pareto optimality while being easy to compute. This paper establishes a one-to-one correspondence between an actuarially fair #paretooptimal (AFPO) risk-sharing rule and a fixed point of a specific function."
This paper discusses #decentralized#insurance and its various forms of #risksharing mechanisms developed worldwide. It highlights the need for a unified #mathematical framework to describe the commonalities and relationships between different forms of #peertopeer insurance. The framework allows for a comparison of existing practices and the design of hybrid and innovative #models .
"We show that pairwise counter-monotonicity implies negative association, and it is equivalent to joint mix dependence if both are possible for the same marginal distributions. We find an intimate connection between pairwise counter-monotonicity and risk sharing problems for quantile agents."
"We address the problem of sharing risk among agents with preferences modelled by a general class of comonotonic additive and law-based functionals that need not be either monotone or convex. Such functionals are called distortion riskmetrics, which include many statistical measures of risk and variability used in portfolio optimization and insurance."
"Four axioms natural in such a framework -- actuarial fairness, risk fairness, risk anonymity, and operational anonymity -- are put forward and discussed."