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Collaborative and Parametric Insurance on the Ethereum Blockchain

Part of: Mathematical economics

Published online by Cambridge University Press:  07 November 2025

Pierre-Olivier Goffard Open the ORCID record for Pierre-Olivier Goffard [Opens in a new window]  and
Stéphane Loisel
Pierre-Olivier Goffard*
Affiliation:
Institut de Recherche Mathématique Avancée, Université de Strasbourg, Strasbourg, France
Stéphane Loisel
Affiliation:
CNAM, Efab, Lirsa, Paris, France
*
Corresponding author: Pierre-Olivier Goffard; Email: goffard@unistra.fr
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Abstract

This article introduces a blockchain-based insurance scheme that integrates parametric and collaborative elements. A pool of investors, referred to as surplus providers, locks funds in a smart contract, enabling blockchain users to underwrite parametric insurance contracts. These contracts automatically trigger compensation when predefined conditions are met. The collaborative aspect is embodied in the generation of tokens, which are distributed to surplus providers. These tokens represent each participant’s share of the surplus and grant voting rights for management decisions. The smart contract is developed in Solidity, a high-level programming language for the Ethereum blockchain, and deployed on the Sepolia testnet, with data processing and analysis conducted using Python. In addition, open-source code is provided and main research challenges are identified, so that further research can be carried out to overcome limitations of this first proof of concept.

Keywords

Blockchainparametric insuranceactuarial science

MSC classification

Primary: 91B30: Risk theory, insurance

Information

Type
Research Article
Information
ASTIN Bulletin: The Journal of the IAA , First View , pp. 1 - 27
Copyright
© The Author(s), 2025. Published by Cambridge University Press on behalf of The International Actuarial Association

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