Peer-to-Peer Multi-Risk Insurance and Mutual Aid

Abdikerimova, Samal; Feng, Runhuan

doi:10.2139/ssrn.3505646

Cited by 10 publications

(20 citation statements)

References 19 publications

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“…Within this vast topic, we concentrate on P2P insurance schemes where participants share their respective losses, reviving the ancestral compensation mechanism consisting in using the contributions of the many to balance the misfortunes of the few. See, for example, Abdikerimova and Feng (2019) and the references therein. The conditional mean risk sharing rule appears to be a very convenient way to distribute retained losses among participants, as shown by Denuit (2019).…”

Section: Motivationmentioning

confidence: 99%

Large-Loss Behavior of Conditional Mean Risk Sharing

Denuit¹,

Robert²

2020

ASTIN Bull.

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We consider the conditional mean risk allocation for an insurance pool, as defined by Denuit and Dhaene (2012). Precisely, we study the asymptotic behavior of the respective relative contributions of the participants as the total loss of the pool tends to infinity. The numerical illustration in Denuit (2019) suggests that the application of the conditional mean risk sharing rule may produce a linear sharing in the tail of the total loss distribution. This paper studies the validity of this empirical finding in the class of compound Panjer–Katz sums consisting of compound Binomial, compound Poisson, and compound Negative Binomial sums with either Gamma or Pareto severities. It is demonstrated that such a behavior does not hold in general since one term may dominate the other ones conditional of large total loss.

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Section: Motivationmentioning

confidence: 99%

Large-Loss Behavior of Conditional Mean Risk Sharing

Denuit¹,

Robert²

2020

ASTIN Bull.

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“…Precisely, we review the methodological results obtained in our preceding papers and use them to formalize the three dominant types of P2P insurance. Our analysis builds on the conditional mean risk sharing rule but also applies to other allocation rules among participants, such as those proposed by Clemente and Marano (2020), Abdikerimova and Feng (2019), and Feng et al (2020), for instance. We do not consider legal issues related to the practical implementation of peer‐to‐peer insurance models.…”

Section: Introductionmentioning

confidence: 99%

Risk sharing under the dominant peer‐to‐peer property and casualty insurance business models

Denuit

Robert

2021

Risk Manage Insurance Review

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This paper purposes to formalize the three business models dominating peer‐to‐peer (P2P) property and casualty insurance: the self‐governing model, the broker model, and the carrier model. The former one develops outside the insurance market whereas the latter ones may originate from the insurance industry, by partnering with an existing company or by issuing a new generation of participating insurance policies where part of the risk is shared within a community and higher losses, exceeding the community's risk‐bearing capacity are covered by an insurance or reinsurance company. The present paper proposes an actuarial modeling based on conditional mean risk sharing, to support the development of this new P2P insurance offer under each of the three business models. In addition, several specific questions are also addressed in the self‐governing model. Considering an economic agent who has to select the optimal pool for a risk to be shared with other participants, it is shown that uniform comparison of the Lorenz or concentration curves associated to the respective total losses of the pools under consideration allows the agent to decide which pool is preferable.

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“…New food and agriculture cooperatives aim to shorten the chain from farm to fork, to reduce the global ecological footprint, increase food quality, and ascertain better price control (Gómez Mestres & Lien, 2017). Finally, and the focus of this dissertation, new insurance organizations that reintroduce subdivision of policyholders in small risk-sharing groups have emerged out of dissatisfaction with the costs, organization, and accessibility of insurance and welfare benefits (Abdikerimova & Feng, 2019;Van Leeuwen, 2016).…”

Section: The Revival Of Collective Actionmentioning

confidence: 99%

“…Voedsel-en landbouwcoöperaties verkorten de route van boer tot bord in een poging de ecologische voetafdruk te verkleinen, de voedselkwaliteit te vergroten en de voedselprijs beter te controleren (Gómez Mestres & Lien, 2017). In de verzekeringswereld, tenslotte, hebben zich nieuwe organisaties aangediend die de prijs en toegankelijkheid van verzekeringen willen verbeteren door polishouders op te delen in kleine schenkkringen (zogenaamde 'risico-deelgroepen'; Abdikerimova & Feng, 2019;Van Leeuwen, 2016).…”

Section: Achtergrondunclassified

“…In recent years many new insurance initiatives such as Friendsurance (Germany) and Broodfonds (the Netherlands) were launched in countries that traditionally have strong insurance systems. These initiatives, which often refer to themselves as Peerto-Peer (P2P) insurance, aim to rethink how insurance is organized (Abdikerimova & Feng, 2019). Inspired by mutual insurance associations (mutuals) from the 19 th century, they go back to insurance in its most basic form: fair, transparent, and social .…”

Section: Introductionmentioning

confidence: 99%

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Mutualism in the 21st Century

Vriens¹

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Mutualism in the 21 st centuryThe why, when, and how behind successful risk-sharing institutions Schenkkringen in de 21 e eeuw Waarom, wanneer en hoe instituties om risico's te delen succesvol zijn (met een samenvatting in het Nederlands) Proefschrift ter verkrijging van de graad van doctor aan de Universiteit Utrecht op gezag van de rector magnificus, prof.dr. H.R.B.M. Kummeling, ingevolge het besluit van het college voor promoties in het openbaar te verdedigen op vrijdag 7 mei 2021 des middags te 12.

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Peer-to-Peer Multi-Risk Insurance and Mutual Aid

Cited by 10 publications

References 19 publications

Large-Loss Behavior of Conditional Mean Risk Sharing

Large-Loss Behavior of Conditional Mean Risk Sharing

Risk sharing under the dominant peer‐to‐peer property and casualty insurance business models

Mutualism in the 21st Century

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