The market for crypto currency and non-fungible tokens (NFT’s) have boomed in the latest few years making digital objects valuable and sometimes extremely valuable. However, mechanism for protecting the digital object or it’s value have not seen the same development. The conceptual meaning of insurance is to allow individual agents to purchase an object associated with a certain risk and transfer that risk to an insurance company for a set premium. By bundling together many different risks the insurance company reduces it’s risk volatility compared to the individual agents and makes a profit by setting the correct premium. It should be possible to find a similar analogy in the world of crypto currency and NFT’s.
General project aim
The general project aim can be summarized in these three questions:
1.What digital objects are most receptive for a type of insurance?
2.What is a suitable pricing model? (And how does it perform?)
3.What data would you need to train such a pricing model?
Measure of success
Success of this project is highly connected to the project aim, i.e.:
1.An assessment of the current palette of digital objects with respect to insurance applications.
2.A proposed mathematical model suited for a specific digital object (or set of objects)
3.Technical details about the model and (if the right data is available) an assessment of its performance in a close to real life example.
4.A description of required and desired data for model training.
For further information please contact Fredrik Thuring or Erik Rasmusson at Trygg-Hansa Försäkring.
email@example.com, 0701 683 548
firstname.lastname@example.org, 0701 682 399