MCFAM Seminar Series: "A Unified Theory of Decentralized Insurance"
Please join us for our last seminar of fall semester! This seminar will feature Runhuan Feng from the University of Illinois at Urbana-Champaign who will discuss a unified theory of decentralized insurance.
About the lecture
Decentralized insurance can be used to describe risk sharing mechanisms under which participants trade risks among each other as opposed to passing risks mostly to an insurer in traditional centralized insurance. There is a wide range of decentralized practices in all kinds of forms developed around the world, including online mutual aid in East Asia, takaful in the Middle East, peer-to-peer insurance in the West, international catastrophe risk pooling, etc. There is also a rich literature of risk sharing in academia that offers other decentralized mechanisms. This work presents a unified mathematical framework to describe the commonalities and the relationships of all these seemingly different business and theoretical models. Such a framework provides a fertile ground for the design and the analysis of hybrid and innovative models.
About the speaker
Runhuan Feng is a professor of mathematics, statistics, industrial and enterprise systems engineering, director of the Actuarial Science Program, director of the Predictive Analytics & Risk Management Program, and the State Farm Companies Foundation Professorial Scholar at the University of Illinois at Urbana-Champaign. He is the faculty lead for the finance and insurance sector at the University of Illinois System’s Discovery Partner Institute in Chicago.