New Data from Southwestern University of Finance and Economics Illuminate Findings in COVID-19 (COVID-19, insurer board utility, and capital regulation)

2020 SEP 08 (NewsRx) -- By a News Reporter-Staff News Editor at Insurance Daily News -- Researchers detail new data in Coronavirus - COVID-19. According to news originating from Chengdu, People’s Republic of China, by NewsRx correspondents, research stated, “This paper develops a down-and-out call option model by introducing a structural break in volatility to capture the coronavirus (COVID-19) outbreak. The life insurer’s equity and its board’s utility are evaluated at the optimal guaranteed rate in the equity maximization.”

Our news journalists obtained a quote from the research from the Southwestern University of Finance and Economics, “Results suggest that the seriousness degree of the COVID-19 outbreak and capital regulation enhance the optimal guaranteed rate and the board’s utility. Increased the board’s utility by increasing liabilities costs insurer profitability.”

According to the news editors, the research concluded: “Conflicts of incentives can arise during the COVID-19 outbreak.”

For more information on this research see: COVID-19, insurer board utility, and capital regulation. Finance Research Letters, 2020;():101659. (Elsevier - www.elsevier.com; Finance Research Letters - http://www.journals.elsevier.com/finance-research-letters/)

The news correspondents report that additional information may be obtained from Panpan Lin, School of Economics, Southwestern University of Finance and Economics, Chengdu 611130, People’s Republic of China. Additional authors for this research include Xuelian Li and Jyh-Horng Lin.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1016/j.frl.2020.101659. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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