Risk-Sharing Rules and Their Properties, With Applications to Peer-to-Peer Insurance

This paper offers a systematic treatment of risk-sharing rules for insurance losses, based on a list of relevant properties. A number of candidate risk-sharing rules are considered, including the conditional mean risk-sharing rule proposed in Denuit and Dhaene (2012). and the newly introduced quantile risk-sharing rule. Their compliance with the proposed properties is established. Then, methods for building new risk-sharing rules are discussed. The results derived in this paper are helpful in the development of peer-to-peer insruance (or crowdsurance), as well as to manage contingent risk funds where a given budget is distributed among claimants