New Findings from Southwestern University of Finance and Economics in the Area of COVID-19 Reported (Risk-averse Insurer Capped-risk Sensitive Lending During the Covid-19 Pandemic): Coronavirus – COVID-19

2023 AUG 15 (NewsRx) -- By a News Reporter-Staff News Editor at CDC & FDA Daily -- Investigators publish new report on Coronavirus - COVID-19. According to news reporting originating from Sichuan, People’s Republic of China, by NewsRx correspondents, research stated, “This paper develops a contingent claim model of a risk-averse life insurer’s equity with various borrowing-firm credit risk features. The insurer’s lending function with various financial technology involvements creates the need to model equity as a capped/naked call option in insurer-borrowing firms.”

Financial support for this research came from National Natural Science Foundation of China (NSFC).

Our news editors obtained a quote from the research from the Southwestern University of Finance and Economics, “As a result, the insurer benefits from the capped-risk lending strategy yielding a higher interest margin. However, either the severe novel coronavirus (COVID-19) pandemic or the substantial risk aversion deteriorates policyholder protection.”

According to the news editors, the research concluded: “In addition, stringent insurer capital regulation reduces the insurer’s interest margin, thus increasing policyholder protection and contributing to insurance stability but discouraging insurer financial technology involvements.”

This research has been peer-reviewed.

For more information on this research see: Risk-averse Insurer Capped-risk Sensitive Lending During the Covid-19 Pandemic. Emerging Markets Finance and Trade, 2023;59(8):2344-2355. Emerging Markets Finance and Trade can be contacted at: Routledge Journals, Taylor & Francis Ltd, 2-4 Park Square, Milton Park, Abingdon OX14 4RN, Oxon, England.

The news editors report that additional information may be obtained by contacting Shi Chen, Southwestern University of Finance and Economics, School of Economics, 555 Liutai Ave, Chengdu 611130, Sichuan, People’s Republic of China. Additional authors for this research include Jyh-Horng Lin and Ching-Hui Chang.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1080/1540496X.2021.1974392. 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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