Peer-to-peer (P2P) insurance is a decentralized network in which participants pool their resources together to compensate those who suffer losses. It is a revival of a centuries-old practice in many ancient societies where members care for each other’s financial needs in the event of misfortune. With the aid of internet technology, P2P insurance is becoming a transparent, high-tech and low-cost alternative to traditional insurance and is viewed by many as a huge disruptor to the traditional insurance industry in the same way Uber is to the taxi industry.
Despite the fast-changing landscape in this field, there has been very little literature to explore the theoretical underpinning of P2P insurance. Our research team at the University of Illinois have developed a novel quantitative framework for the design and engineering of P2P insurance. We are recently commissioned by the Casualty Actuarial Society to develop a review of existing business models and rising opportunities and challenges for practicing actuaries. Financial support will be provided for all students participating in this project.
Students: Brandon Pazmino , Maya Ramahi, Karen Allena, Lavanya Srivastava, Runzhou Wang
Yixiao Xiong, Sally Seo
Supervisor: Runhuan Feng
Graduate Supervisor: Samal Abdikerimova