Peer-to-peer insurance and risk sharing

In this thesis we demonstrate different applications of peer-to-peer (P2P) risk sharing strategies. First, we present a variety of P2P insurance/mutual aid models that facilitate the exchange of multiple risks and enable peers with different needs to financially support each other in a transparent and fair way. 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. Second, we extend the above risk sharing strategy to a multi-period case. In this case participants start with (different) initial reserves. Then reserves at any time period are updated by subtracting exchanged losses of the current period from the reserves of the last period. Loss exchange rules are obtained by maximizing the weighted sum of the expected reserves minus a weighted sum of the second moments of the reserves. Third, we present an alternative to the World Bank's pandemic bond design by introducing a P2P structure. While preserving the mechanism of pandemic contingent debt instrument, the P2P structure offers more flexibility with payment triggers catering to the needs of individual countries and better inclusion of co-funding agencies beyond bond investors. The work is intended to bring fresh perspectives to the ongoing debate on the development of international framework for health emergency preparedness and response.

Name thesis:degree_name

Ph.D.

Level thesis:degree_level

Dissertation

Discipline thesis:degree_discipline

Mathematics

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2022

Author dc:creator

• Abdikerimova, Samal

Contributors dc:contributor

• Feng, Runhuan
• DeVille, Lee
• Chong, Alfred
• Linders, Daniel

• P2P insurance
• risk sharing
• mutual aid

Statement dc:rights

• Copyright 2022 Samal Abdikerimova

Language dc:language

en, eng

Handle dc:identifier

https://hdl.handle.net/2142/115545

OAI record oai:identifier

https://www.ideals.illinois.edu/oai-pmh?verb=GetRecord&metadataPrefix=etdms&identifier=oai%3Awww.ideals.illinois.edu%3A2142%2F115545