# kaal:claim:3396542-002

**Claim.** In the traditional insurance structure, financial distress or bankruptcy of an individual underwriter harms consumers, who lose the protection of their insurance contract and must seek new coverage.

**Type.** failure  **Support.** asserted

**Holds when.**

- traditional centralized insurance structure

**Source quote.**

> Financial distress or bankruptcy of an individual underwriter affects consumers who may no longer be protected by the insurance contract and have to look for new coverage.

**From.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, *Decentralized Underwriting* (2019), I. Introduction, page 3

**Cite as.** Craig Calcaterra, Wulf A. Kaal, Vadhindran K. Rao, Decentralized Underwriting (2019). SSRN: https://ssrn.com/abstract=3396542

**Verify.** sha256 of source PDF `ce2bda03a0b788ea3e7747f02c3c351ef7c808a41150d5cda34767bbe98800c0` at https://raw.githubusercontent.com/wulfkaal/Academic-Papers/main/papers/pdf/Calcaterra%20et%20al.%20-%202019%20-%20Decentralized%20Underwriting.pdf

**Failure mode.** Underwriter insolvency passes through to consumers  (family: systemic-risk-transmission)

**Topics.** defi, risk-and-incentives

**Keywords.** underwriter-insolvency, consumer-protection, insurance-underwriting, counterparty-risk

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