Regenerative Insurance for Thrivable Societies

How Our Project Will Contribute To The Growth Of The Decentralized AI Platform

Photrek's proposal advances BGI's mission by showing how AGI can equitably participate in financial and governance structures as an equal constituent alongside people, planet, and profit. The project provides a blueprint for ethical AGI integration as a responsible steward through computational modeling and decentralized governance, reinforcing BGI's role in balancing financial security, ecological stability, and technological advancement within a regenerative economy.

Our Team

Photrek’s team excels in AI governance, blockchain, and regenerative finance, uniquely positioning us to develop a decentralized insurance model. Our experts in risk modeling, sociocratic governance, and predictive analytics ensure ethical and adaptive AI integration. Operating under a Sociocratic Operating Agreement, we prioritize agile decision-making and interdisciplinary collaboration.

Company Name (if applicable)

The core problem we are aiming to solve

The traditional insurance system is a reactive financial compensation mechanism and is ill-equipped to address the systemic risks posed by accelerating environmental crises and transformative AI technologies. It centralizes decision-making in ways that prioritize corporate profit over long-term resilience, excluding planetary health and technological infrastructures as key stakeholders. As superintelligence integrates into society, these flaws become existential threats, exacerbating rather than mitigating risk. A fundamental shift is needed to embrace decentralized, ethical risk-sharing models that align incentives across people, planet, processors, and profits and a regenerative future.

Our specific solution to this problem

Photrek proposes a regenerative insurance framework that treats people, planet, BGI, and profit as equal stakeholders in risk governance, using blockchain and AI to distribute risk and incentives fairly. BGI is not treated merely as a tool but as a participant that holds, buys, and sells risk, balancing financial, ecological, and technological resilience. 

The impact of this approach will be to support the development of wisdom economies and equitable decision-making for thriving ecosystems.

The core principles of Photrek's regenerative insurance framework are:

1. Interdependent Risk Stewardship – People, planet, AGI, and profit co-manage risk for systemic resilience.

2. Transparent & Participatory Governance – Decision-making is decentralized, auditable, and inclusive.

3. Incentives for Regeneration – Risk-sharing rewards actions that enhance ecological, social, and technological well-being.

4. Adaptive & Ethical Intelligence – AGI adjusts risk models to ensure long-term sustainability and fairness.

Photrek will:

1. Leverage LLMs and predictive analytics to build a complex systems simulation of the insurance industry comprising people, planet, processors, and profit as stakeholders.

2. Design a BGI and blockchain-based regenerative insurance system that balances rights across people, the planet, BGI, and profits for sustainable development.

3. Complete a case study of the insurance industry's stress using the simulation in the Tampa Bay metropolitan area, which is experiencing acute climate stressors.

Project details

Introduction: A Convergence of Crises and Opportunities

Humanity is facing a convergence of systemic challenges. The climate crisis and the rise of AGI are reshaping the global economy, governance, and societal stability. Yet, traditional insurance models remain fundamentally misaligned with these transformations. Initially designed to provide security in times of uncertainty, the insurance industry now faces structural vulnerabilities. Climate-related disasters are overwhelming actuarial models, increasing risk exposure and creating fundamental instability in insurance markets (Swiss Re Institute, 2021). Meanwhile, automation and AI-driven decision-making disrupt risk assessment methodologies, yet traditional insurers fail to integrate AGI as an active participant in risk ecosystems (Brynjolfsson & McAfee, 2014).

Centralized financial structures are insufficient to manage decentralized risks (Buterin, 2014). Without innovative restructuring, insurance will fail as a safeguard, exposing societies to systemic collapse. The 2023 global insurance crisis, with rising insolvencies due to climate volatility, illustrates the urgent need for a regenerative model.

Photrek brings a unique set of capabilities that enable it to lead and guide the BGI Nexus community in the development of regenerative insurance, including simulation of complex systems (Granha, 2022), risk-aware machine intelligence (Cao, 2022), and decentralized governance (Nelson, 2024).

Reframing the Purpose of Insurance

Photrek proposes a regenerative insurance framework that treats people, planets, processors (BGI), and profit as interdependent risk and value exchange stakeholders. Unlike traditional models externalizing planetary health and technological intelligence, this system actively integrates AI-driven risk assessment, multi-stakeholder governance, and dynamic incentive structures to ensure that risk and opportunity are distributed fairly and adaptively.

This framework is a stakeholder-driven learning system that continuously optimizes resilience, fairness, and sustainability rather than just maximizing short-term profitability. This model leverages LLM complex systems simulations to test and validate how a regenerative insurance system would allocate risk and opportunity to promote systemic resilience compared to traditional insurance.

Using a multi-agent system, the project will analyze how People (constituents buying insurance), Planet (natural ecosystems and climate), Processors (BGI, as an ethical stakeholder), and Profit (financial organizations selling insurance) interact under current insurance models and a regenerative alternative.

Simulation Framework and Data-Driven Validation

To ensure real-world applicability, this project will use empirical data from the Tampa Bay metropolitan area, a region facing acute climate stressors. The simulation will incorporate historical and real-time data from public data sources such as NOAA, FEMA, USGS, the Florida Office of Insurance Regulation (FLOIR), and economic indicators from the Bureau of Economic Analysis (BEA).

These data sources will enable the following:

1. Baseline Modeling of Traditional Insurance Systems

• Mapping historical insurance claims, premium fluctuations, and systemic failures during extreme weather events in Tampa Bay.

• Simulating how risk is distributed across demographics, identifying who bears the highest insurance costs and who is left uninsured.

• Evaluating capital stability of insurance pools and their ability to handle compounding climate risks.

2. Multi-Stakeholder Regenerative Insurance Simulation

• Introducing BGI as an active participant that manages real-time risk exchanges, premium adjustments, and incentive mechanisms with predictive analytics using Photrek risks assessment (Cao, 2022) evaluated against sustainability and fairness metrics to prevent biased or exploitative decision-making.

• Designing an alternative governance model where People, Planet, Processors, and Profit share risk and opportunity dynamically rather than relying on centralized risk concentration in insurers.

• Testing incentive structures that reward sustainable actions, such as reducing flood vulnerability and investing in ecological restoration.

• The model simulates decentralized blockchain governance, with Smart Contracts for Automated Risk Management and Tokenized Incentives for Risk Reduction to Policyholders, who may audit and review AI-driven insurance adjustments.

3. Comparative Systemic Analysis

• Measuring economic resilience between traditional vs. regenerative insurance models, including liquidity, claim solvency, premium affordability, fairness of risk distribution, and long-term socioeconomic and ecological sustainability.

• Identifying policy recommendations for real-world deployment of regenerative insurance.

Multi-Stakeholder Model and Risk Allocation

Traditional insurance treats Planet (natural ecosystems) as an externality and Processors (BGI) as  tools rather than  active decision-makers. This regenerative model introduces a dynamic, interdependent stakeholder ecosystem where people make risk-based decisions as policyholders, adapting their behaviors in response to real-time pricing incentives. The planet holds quantified risk stakes for ecological degradation, receiving, for example, insurance-backed carbon credits or payouts for restoration efforts. Processors (BGI) function as an autonomous risk broker, continuously adjusting risk exposure and redistributing capital for systemic stability. Profit (Insurance Markets, Investors) stake capital in a risk-sharing pool with built-in sustainability-driven incentives rather than short-term extraction models.

Unlike current systems where risk trickles down to the most vulnerable, this paradigm shifts decision-making that balances risk and value between people, nature, technology, and profit. This risk-sharing mechanism does not favor financial concentration but nurtures the thriving and balanced well-being between people, nature, tech, and profit (EARTHwise Centre 2024).

Key Differentiators of Regenerative Insurance

This project departs from centralized, profit-driven insurance structures by implementing:

1. Dynamic Risk Sharing – Traditional models assign fixed risk premiums based on historical trends, while regenerative insurance dynamically adjusts premiums based on real-time data, behavioral changes, and AI risk forecasting.

2. Planet and BGI as Risk Stakeholders – Unlike conventional insurance, which views climate and AI as risk factors, this model treats them as active participants in risk governance, ensuring nature and AI-driven systems contribute to decision-making.

3. AI-Governed Resilience Mechanisms – Traditional insurance cannot adapt quickly to emerging risks. This regenerative model continuously optimizes itself using AI-driven, decentralized governance.

Impact and Future Applications

The simulation will provide a data-driven foundation for reforming the insurance industry, offering a tested and validated framework for future policy implementation. The results will inform real-world insurance market adaptations, demonstrating how regenerative insurance can reduce financial exposure for insurers and make premiums more affordable for policyholders, promote climate resilience by incentivizing risk reduction behaviors rather than merely compensating for losses, and establish a blueprint for integrating AGI into economic governance.

The Tampa Bay case study will serve as a replicable model, guiding the transition toward decentralized, AI-integrated, regenerative financial systems applicable across coastal cities, climate-vulnerable regions, and global insurance markets.

This proposal aligns with the AGI Constitution’s Guiding Wisdoms by embedding interdependence, discernment, and uncertainty into insurance governance. The model embraces the Wisdom of Interdependence by treating People, Planet, Processors (BGI), and Profit as interdependent stakeholders, ensuring risk is distributed ethically and sustainably. The Wisdom of Discernment is reflected in AI-driven transparency and fairness, correcting inefficiencies in traditional insurance structures. The Wisdom of Uncertainty is integrated through adaptive risk modeling, allowing the system to remain resilient amid unforeseen environmental and economic shifts. This approach ensures that AGI is not just a computational tool but a conscious participant in fostering systemic wisdom and regenerative financial ecosystems (EARTHwise Centre 2024).

Photrek invites collaboration with researchers, policymakers, and AI governance experts to bring this vision to life and redefine how societies manage risk, wealth, and resilience in the superintelligence and climate uncertainty age.

Key References

• Brynjolfsson, E. & McAfee, A. (2014). The Second Machine Age.

• Cao, S., et al. (2022). Coupled VAE: Improved Accuracy and Robustness.

• Collier, B., et al. (2009). Parametric Insurance: Closing the Protection Gap.

• Davidson, S., et al. (2018). Blockchains and the economic institutions of capitalism.

• EARTHwise Centre, (2024). Global AGI Constitution: Participatory Framework for Benevolent AGI Governance. 

• Floridi, L., & Cowls, J. (2019). A Unified Framework of Five Principles for AI in Society.

• Ganha, M. et al. (2022). Opinion dynamics in financial markets via random networks.

• IPCC (2023). Climate Change 2023 Synthesis Report.

• Montes, G., & Goertzel, B. (2019). Distributed, decentralized, and democratized artificial intelligence.

• Nelson, K., et al. (2024). Sociocratic Pluralism governance for blockchain ecosystems.

• Ostrom, E. (1990). Governing the Commons.

• Russell, S. (2019). Human Compatible: AI and the Problem of Control.

• Swiss Re Institute (2023). Sustainability Report.

• Taleb, N. N. (2012). Antifragile: Things That Gain from Disorder.

Existing resources

• Cao, S., et al. (2022). Coupled VAE: Improved Accuracy and Robustness.
• Nelson, K., et al. (2024). Sociocratic Pluralism governance for blockchain ecosystems.
• Gavina, I., AI Assistance for Governance

Open Source Licensing

Links and references

https://photrek.io

Photrek Medium Articles

Dr. Nelson Publications

Photrek Github

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