Actuarial Notes

Peer-to-Peer Insurance: Blockchain Implications

By Esther Boyle, Sasha Pesic, Petar Jevtic and Dragan Boscovic · Society of Actuaries · 2021

Study guide: Exam CFE-201

A March 2021 Society of Actuaries research report on peer-to-peer (P2P) insurance, a business model in which individuals pool their resources for mutual aid, built on blockchain and smart contract technology. It was written by researchers at Arizona State University and sponsored by the SOA Research Expanding Boundaries Pool. It describes a business use case on the Hyperledger Fabric blockchain platform and tests it with simulated examples for property and casualty and for life insurance.

On the syllabus

Executive Summary

1 Introduction

  • 1.1 Blockchain Technology
  • 1.2 Peer-to-Peer Insurance

2 Background

  • 2.1 Historical Context
  • 2.2 Decentralized Markets and Insurance

3 Technological Background of Hyperledger Fabric

  • 3.1 Associated Technologies
  • 3.2 Public and Private Blockchain
  • 3.3 Other Blockchain Models

4 Hyperledger Fundamentals

  • 4.1 Configuration Elements

5 Business Use Case

  • 5.1 Organizations
  • 5.2 The Blockchain Channels and Ledger
  • 5.3 P2P System Emulation

6 Simulated Examples

  • 6.1 Primary Application to Property and Casualty
    • 6.1.1 Mathematical Assumptions of Correlation Structure
    • 6.1.2 Pool Size Simulation
    • 6.1.3 Voting Structure Simulation
    • 6.1.4 Attachment Point
    • 6.1.5 Fully Stochastic P2P Platform
  • 6.2 Extension to Life Insurance
  • 6.3 Blockchain Engineering Insights

7 Conclusion

8 Acknowledgments

References

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