At the end of this page, I have summarised "The Basic Elements of Insurance" as I was taught them for my insurance training some 35 years ago.
With these basic elements you have all the building blocks needed to build a decentralised, autonomous risk sharing solution without a central insurance needed.
Imagine one small community coming together to share their risks. Now ask them to share a small percentage of their own reserves to help other communities just like them, in case a larger event happens to them. Think about how their ability to carry risk increases if they are together with ten other communities. A hundred. A thousand. One Million.
Am I a dreamer? Yes, I am ;). And there are more than 3 billion people on this planet without access to insurance today.
In Kenya, the country visited in February 2022 to learn about the lives and the communities of the people there and how they handle unexpected (and expected) large financial obstacles, 97% of the population do not have access to insurance. Micro-insurance solutions that try to close the gap struggle with premium collection and teaching people the benefits of thinking about future threats today.