Risk Sharing

Editors

  • An Chen, Ulm University
  • Steven Vanduffel, Vrije Universiteit Brussel
  • Ruodu Wang, University of Waterloo

Description

This special issue examines contemporary developments in risk sharing across actuarial science, recognizing its importance in managing global interconnectedness, emerging risks like longevity and cyber threats, and climate change. The issue seeks contributions on how risk sharing mechanisms contribute to financial stability, social equity, and economic innovation by distributing risks fairly across parties and building confidence in investment.

The journal invites theoretical and applied papers addressing fundamental challenges in risk sharing economics, mathematical modeling, and uncertainty quantification. Submissions may cover economic models based on decision and game theory, advanced statistical tools, and approaches to handling model uncertainty in decision-making. Additionally, the issue welcomes contributions on practical innovations such as alternative risk transfer mechanisms, parametric insurance, longevity-linked products, and blockchain applications that automate and enhance risk sharing processes.

Potential topics

  • Economics of risk sharing and insurance: New economic models for risk sharing and (re)insurance mechanisms, especially in connection to decision theory, game theory and contract theory
  • Mathematics and data science of risk sharing: Novel mathematical and statistical tools to address challenging problems in risk sharing
  • Model uncertainty in risk sharing: Risk sharing models and mechanisms handling uncertainty in the decision-making process arising from lack of data, model misspecification, computational limitations, or behavioral issues
  • Alternative risk transfer: Catastrophe bonds, insurance-linked and longevity-linked securities
  • Parametric insurance: Predefined triggers for payouts based on specific parameters such as weather conditions or economic indicators
  • Innovative retirement products focusing on longevity risk sharing: Products addressing the challenge of outliving one's savings by spreading longevity risk
  • Blockchain Technology: Smart contracts and transparent records of transactions to enhance and automate risk sharing processes