State and Tokenomics of Decentralized Insurance
Decentralized finance (DeFi) protocols come in a wide variety with the development of blockchain technology. The use of tokens (cryptocurrencies) as a means of decentralized financial transactions has resulted in many innovations that have never been seen in the traditional financial market. Among them, the DeFi insurance sector has also ushered in alternative solutions for various components of traditional insurance ecosystem, such as pricing-by-stake, consensus-based claims processing, crypto asset-liability management, distributed risk sharing, etc. The talk will provide an overview on the state of decentralized insurance, including non-crypto risk sharing and DeFi insurance, as well as fundamentals of tokenonomics for insurance applications. Additional topics include whether decentralized solutions accurately assess the underwritten risks and whether the business models are economically viable in the long run.