Decentralized Autonomous Risk Transfer on the Blockchain

ABSTRACT
The rise of blockchain technology enables a fully automated decentralized autonomous risk transfer. In this Lecture, you will not only learn about the functionality as well as operating principles of this new method of risk transfer. You will also get an overview of the corresponding institutional arrangement and its challenges. At least two major challenges can be identified: Ensuring the quality of the product and attaining a critical network size. A feasible solution for these problems is the usage of system-specific tokens, which are used as a form of digital collateralization. How these theoretical concepts can be translated into practice will be explained while demonstrating the economic potential of the idea. While flight delay risk is already handled through decentralized autonomous risk transfer, the biggest benefits can be realized by decentralizing crop and hurricane insurance, including a seamless transfer of the risk to capital markets.

SPEAKERS
Alexander Braun is Vice Director at the Institute of Insurance Economics (IVW-HSG) and Senior Fellow at the Wharton Risk Center (Penn). He is a risk management professor at the University of St. Gallen, where he obtained a Ph.D. in Finance. Having held visiting scholar positions at the Wharton School and Fox School of Business (Temple University) in the US, Mr.Braun’s focus areas have become comprise Natural Catastrophe Risk, Insurance-Linked Securities, Digital Insurance and Sustainable Insurance. Overall, he looks back on more than 12 years of combined scholarly and practical experience in risk management, insurance, and the financial markets.

Niklas Häusle is a PhD student at the University St. Gallen and project manager at the Institute of Insurance Economics (IVW-HSG). His research interests lie at the intersection of digitalization, insurance economics and organization economics. He received a MSc in Business Economics from the University of Ulm, Germany.

AGENDA:
18:00 – 18:05 Welcome by Dezentrum
18:05 – 19:00 Lecture by Prof. Alexander Braun and Niklas Häusle
19:00 – 19:30 Q&A Session
19:30 – 20:00 e-Apéro

CO-ORGANIZERS:
UZH Blockchain Center
Trust Square